Nearly 80% of People Believe Gas Prices Have Been Manipulated
May 23rd, 2007 | by Brian Carr |According to a recent poll on Daily Fuel Economy Tip, nearly 80% of people believe that oil and gasoline companies have manipulated the supply of gas in order to cause prices to shoot through the roof.
When asked, “Do you believe oil and gasoline companies have manipulated the supply of gas to cause prices to increase?” 79% of respondents stated yes; 16% stated no; and 5% stated that they were unsure.
It’s pretty easy to see how so many people could believe that gasoline prices have been manipulated:
- The price of oil has remained relatively constant since the beginning of the year while gas prices are up over 40% - and it seems we set a new record high with each passing day.
- Sporadic problems at refineries throughout the country that have caused major supply issues, not to mention there haven’t been any new refineries built (which would increase capacity/supply) in many years.
- These huge multi-national corporations continue to rake in record billion dollar profits in the face of rising energy costs.
I think it’s this last item - the record profits - that’s causing so many people to be upset by the rising price of gasoline and lead them to believe that we’re just being gouged. It would be one thing if profits decreased or even remained flat in the face of rising costs to produce gasoline, however these profits have seemingly increased, both in percentage and dollars.
If it weren’t for these incredibly high profits, I think people would still be upset about paying more at the pump, however, they’d probably be a lot less suspicious too.
Personally, I’m in the minority here because I don’t think that oil companies have purposefully reduced supply to increase prices. While I voted that I wasn’t sure, I think the increased prices have more to do with the continued world-wide increase in demand for gasoline than it does with any conspiracy.
While there seems to be a lot of evidence pointing towards gouging, I think much of it is circumstantial.
However, the one thing that keeps me believing in the possibility of price manipulation is the fact that these companies know that even as prices shoot up we’re still going to drive our cars just as much as we did before. That being said, this probably would have also been the case 15 years ago when we were paying $1.25 per gallon. Why didn’t they jack up prices then too?
Long story short, I have no idea what to believe, but it certainly seems like most of us feel that we’re being screwed.
58 Responses to “Nearly 80% of People Believe Gas Prices Have Been Manipulated”
By Shrill Will on May 24, 2007 | Reply
I think you hit the nail on the head: If the oil companies have the power to gauge us at will, then why didn’t they do it back then when the price of gasoline was cheap? When the price of gasoline was cheap back then, were these energy companies somehow being benevolent? What happened that changed their minds?
By sakanagai on May 24, 2007 | Reply
Shrill Will …why didn’t they do it back then…?
Shrill Will, but they did. Back in the 90’s when gas was under $1 a gallon, the oil companies were bleeding money. It was at this point that they conducted an internal investigation into their facilities. They had tons of spare capacity, but not enough demand. They closed down less productive and less effecient refineries, while boosting the effeciency of the remaining. The result is same general supply, but significantly less spare capacity which is a major force behind current price spikes. This didn’t suddenly jump prices up $2 or anything, but it did make prices far more sensitive to refinery problems, severe weather, and geopolitical concerns.
I answered yes on this recent poll, but perhaps my reasoning was a little different. I am not claiming that oil execs are sitting in a board room somewhere laughing and lighting cigars with $100 bills discussing how much to raise prices this week. I’m not saying that they purposefully damaged their own refineries. I’m simply saying that prior practices designed to increase profits at potentially great risk to consumers are now starting to have a foreseen effect. The prices have been manipulated, but it was time assisted by big oil that is the cause.
By Bob on May 24, 2007 | Reply
Feregni Rule of Aqusition:
War Is Good For Buisness!!
By DryMaltExtract on May 24, 2007 | Reply
It’s because they CAN now.
When gas prices were hitting 60-80 cents in Canada people were going nuts. The outrage and blah blah blah. They were told it was due to conflicts etc. etc. etc.
People eventually got used to it. Then gasp! Some big catastrophe, we have to put it over $1.00! No outrage. Why? because people were getting used to the fact that they were being taken advantage of and that they could do nothing about it.
Now that the $1.00 mark has been broken, so have people’s will and they will not cause uproar about it not going below it. Why would a greedy company go below $1.00 when they know people will pay it.
“What the market will bear” blah blah blah.. the situation becomes different when it’s damn near a necessity. If it were some novelty item people would simply stop buying it. For gas, there’s nothing they can really do about it.
By Partylikeitstuesday on May 24, 2007 | Reply
You all have made very valid points and I can see both sides of the story. I also would have voted for unsure. I am also waiting for that one company to expand its supply and lower the prices semi-dramatically and come out as a hero of oil companies while they know that they have the resources and arent losing anything at all. Bastards.
By Michael on May 24, 2007 | Reply
My two problems with gasoline prices are;
1. I understand that supply and demand factor into the price, but how does whether some dictator in a sand box in the middle east, takes a dump have an effect? It doesn’t!
2. Supply and demand issues have NOTHING to do with the fact that ALL stations on a paticular corner have the same price OR that just a mile down the street you can save 10 or 15 cents a gallon. If the prices aren’t being manipulated then the price pergallon should be the same at any paticular gas station at any one time, and there would be more competition.
JMHO
By Skeptic Sam on May 24, 2007 | Reply
A better headline: 80% of Daily Fuel Economy Tip readers who answer online polls believe gas prices have been manipulated.
By 80-20 on May 24, 2007 | Reply
More proof that 21% of the population prefers to live in denial.
By Brian on May 24, 2007 | Reply
The problem is that there haven’t been any refineries built in the US in over 20 years. The notion that demand has somehow ballooned over a year ago is flat out absurd - not enough to justify a 20% drop in crude prices, and a 40% increase in gas prices (an effective 75% increase in price).
Part of the reasons that gas prices were low in the past had a little something to do with the fact that the president wasn’t letting big oil actually write the US energy policy (like Bush has). Deregulation has left companies free to do as they will in many cases, and as big corporate interests have shown time and time again, that the “free market” does NOT do anything to encourage anything other than maximization of profits, by any means.
By Sam on May 24, 2007 | Reply
I think its broad conspiracy. The free market economy works ok, except certain things that people need. Food, water, transportation. Our economy needs gas prices to be down the most. Why aren’t the big 5 passing the savings on to the consumer if their profits are so high. Or better yet, build a lot more refineries. This is worse than the robber barons.
By mr moneybags on May 24, 2007 | Reply
welcome to Peak Oil my friends…
By Ecoman on May 24, 2007 | Reply
Its simple economics, supply vs. demand. No matter how high the price is getting, Americans will still buy. Thus the price can go up. If we didn’t buy, the price would do down. They supply it, and we surely demand it. Summer is coming, what do American’s do? They drive to the shore and back to get a tan with 2 people in the car!!!
By tcmacdonald on May 24, 2007 | Reply
How about providing some real statistical details on the poll? Like the number of respondents, their demographics, margin of error, etc… It’s easy to draw conclusions when you say 80% of some random number– but that could be 80% of 10 people which makes your poll pretty much worthless.
That aside, I have no doubts that we’re getting screwed.
By Joshua on May 24, 2007 | Reply
There are other factors to consider besides the oil companies, when you start looking at who is behind the increase in gas prices.
1. The oil producing countries; specifically OPEC. OPEC is constantly changing the amount of oil that they pump. They regulate the supply of oil and can keep the price at whatever amount they choose. They benefit from keeping their production numbers down because it keeps the prices up. According to OPEC they only produce half of the world?s oil, but most economist put that number closer to 2/3. here
2. No new refineries in the US since 1976. As was mentioned above, the oil companies have not built any new refineries in years. Funny how hurricane Katrina caused the price of gas to sky rocket and it never came down. The news reported that the increase in gas prices was because of damage to refineries or the refineries being shut down. Did demand for gas increase so much that the price was never able to drop? No, the oil companies saw an opportunity and excuse and they jumped at it.
here
3. The oil companies need to make as much money as possible right now if they want to survive. The hot political topic lately has been global warming. One of the perceived primary causes of global warming is vehicle emissions. The public perception appears to be that doing away with gasoline powered vehicles will save the world. If the oil companies can earn huge profits now then they will have the ability to invest in some of the ‘new’ technologies of tomorrow; alternative fuel sources.
here
4. The demand for gasoline in other countries (e.g. China, India) has increased dramatically in the past 3-5 years. With the oil production being regulated, the increase in demand fuels and regulation of the supply yields an increase in price.
here
My 2 cents.
By Brandon on May 24, 2007 | Reply
I’m more with the price gouging. It’s ridiculous how the oil companies have not decided to build new refineries and keep raking in profits, how long do they think they can get away with it?
By Nick on May 24, 2007 | Reply
lol, I like Bob’s comment
By Mattt on May 24, 2007 | Reply
I think the reason that this didn’t happen years ago when oil was cheap was that it wouldn’t have been feasible. You get some conflict going in the Middle East and so you start to raise the price of gasoline because everyone will blame the turmoil in the region and not your company. Then some more trouble over there, maybe a massive hurricane that destroys gas production in the Gulf and the prices can go higher, everyone accepts that the oil companies can’t do anything about it. They are the victim, its their refineries that have been destroyed and their market that’s going to hell, but then wait… record profits, $2 dollars a gallon sounds great, and greed begins to prevail.
It was necessary for there to be an environment where a scapegoat, be it the Middle East, Hurricane Katrina, or even the Horrible Fuel Hungry Consumer, before the price gouging could begin. What you see now is the backlash of a system perpetuated by greed that got out of hand and now Americans are trying desperately to get back to some sanity.
Sad thing is they could drop the prices to $2.50 a gallon, the entire nation would be ecstatic and no one would say a peep about how its still 200% of what we paid 6 years ago.
By Adam on May 24, 2007 | Reply
RE #6
Michael, did you see this recent story? http://educate-yourself.org/cn/wisconsindemandsgasincrease09may07.shtml
If there’s price-fixing going on, it’s as likely to be at the demand of the state as at the whim of the oil companies or individual gas stations.
By Josh on May 24, 2007 | Reply
Supposedly the whole “not building new refineries” is true because of federal regulations. However, current refineries have expanded tremendously since the 70’s. It’s cheaper to expand than build new facilities. Makes sense I guess.
Record profits on the other hand - doesn’t make sense.
By John Carthy on May 24, 2007 | Reply
In Europe gas prices are twice what they are in North America. There they believe gas prices in North America are being manipulated - to keep them at a level that they see as ‘low’.
By GhostFace on May 24, 2007 | Reply
Nothing we can do, Nothing that the goverment wants to do about the gas situation… 10 billion dollar profit last year, What would they owe the IRS ??? These cheap bastards dont care about me or you the bigger fish eats the little fish… and so on untill you hit the palktin wich is about where we sitt unless you make over 5 million a year they you might be a shrimp. But the moral of this story is ride a dam bike to work …. every one is to dam lazy. But i’ll be truth-full i drive to work every day but i live about 20 min a way…….. Needa buy a dam BIKE!!!
By brad tittle on May 24, 2007 | Reply
There is no such thing as gouging.
Except when it is your own pocketbook that is being hurt.
My boss has no problem charging $50,000 for a product that has ongoing costs of nothing, but assumes immediately that the oil companies are gouging him.
A realtor feals justified in earning $30,000 for 100 hours worth of work (if he gets that many hours in), but feels the taxis were gouging me when they expected $70 for a $32 ride. I was willing to pay because no one else was traveling on the roads at that time. Limited supply.
If the Oil companies could charge $10 / Gallon, guess what, THEY WOULD!. It would not be gouging.
Those of you who think gouging is the issue NEVER passed Econ 101.
The Oil companies have capacity. They make money by maximizing the throughput. If gas stops flowing, they stop making money.
I apologize to those of you who believe that the concept of GOUGING is real, but you are ignorant. Gouging doesn’t exist except as a means of politicians and other who wish to motivate you, to make you feel oppressed.
If you could fill up plastic water bottles for 2cents and sell them for $1.50, would that be gouging?
Anyone whining about how Necessary gas is to their life need only adjust their lives to suit the situation. Don’t want to do that, well then STFU.
Okay you don’t have to shut up.
By Brian on May 24, 2007 | Reply
John Carthy - http://money.cnn.com/2007/05/21/news/international/europe_gas/index.htm
Prices are lower in the US because of tax differences between Europe and the US.
$10B profit - not sure where you got that. Exxon alone saw $39.5B NET PROFIT last year on their own. Yes, that’s right, nearly $10,000,000,000 in profit every quarter. They saw even more cashflow than that - meaning that they were able to shield a fair amount of their income from taxes / reporting via depreciation and other writeoffs.
Let energy companies write US energy policy, and you get stuff like this.
Remember when everyone in California jumped up and down and screamed about Enron screwing them? And everyone laughed and said “you freaks in California shut up, nothing’s going on, deal with it”… and then said NOTHING when it was discovered that Enron was jamming the power networks with surplus power to jack up prices and cause rolling blackouts?
Years from now, when the oil companies are called to task over their pricing, will people actually go for blood this time around, and punish the companies that are gouging?
By Ben g on May 24, 2007 | Reply
Just back in December OPEC voted to reduce their production of oil to shore up prices and keep them from falling.
By Justin on May 24, 2007 | Reply
It’s called inflation. China has all these U.S. dollars to spend thanks to our trade deficit and the best thing to spend it on is Oil (they don’t want nor need any U.S.A. “crap”… it’s too expensive anyways), thus the rise in barrel prices over the last few years. Many state governments also have laws to prevent “illegal” “anticompetitive” business practices and therefore many have a price floor. This floor is sometimes set to a percentage of the actual cost of oil/gas. If the floor is 9% above cost then when gas costs $1/gal the price has to be $1.09. With a cost at $3/gal the price must be $3.27… that’s 18 cents more profit. This accounts for the larger profits… the larger percentage comes from the fact that there is minimal (”no”) additional cost in selling gas at $1.09 or $3.27 since for the most part those costs to sell can be considered fixed costs. (Assume, for simplicity sake, it costs 5 cents a gallon to sell a gallon of gas. (.22 / .27) > than (.04 / .09).
By Terry on May 24, 2007 | Reply
The CEO of Exxon received a 600 Million dollar retirement package.
Someone is making too much money.
By Justin on May 24, 2007 | Reply
Whoops. I screwed the numbers. ( profit / revenue) so (.22 / 3.27) > (.04 / 1.09)
By Chris Taylor on May 24, 2007 | Reply
“They supply it, and we surely demand it.”
“how long do they think they can get away with it?”
We do not demand it we REQUIRE it. I can not ride a bike 54 miles to my job. I can not take public transportation (even at $5 a gallon it would be cheaper for me to drive to work solo (I always carpool though its always my car since its has the highest mpg) thank to take the 4 trains it would take and this is not accounting for the fact that it takes me 80 minutes to drive there. I stop doing the math when I reached 3+ hours for the trains.
We DO NOT have a a public transit system to speak of. I can not get a job in the city and even if I could the drastic INCREASE in cost of living would far far shadow the MEAGER savings in fuel especially when offset by the cost of the $20 a week buss pass.
The only way we can fix this is to have cars that do not require pumped fuel. (alternative fuels are a dead end since I still have to PAY someone for them at a premium and they are no more effecient and most times LESS efficient)
What we need are electric cars. YES I have to buy my E but 1/6th or less the amount of E for the same equivalent of gasoline. AND I can generate my own E. even a modest $1,500 windmill or a $1,500 solar panel will PAY for itself in less than 2 years. Maybe even 1 year.
Automakers will NOT voluntarily make us EV’s - they are better less complicated (mechanically) and Extremely long lasting and low maintenance - This means lower PROFITS for them. This is precisely why they REFUSE to make us EV cars and in fact intentionally destroyed and CRUSHED a perfectly good successful EV to make sure no one had one. (GM EV1)
So what we have to do is AS A SOCIETY as a WHOLE we have to REFUSE to buy “new” cars. ONLY buy used and make it CLEAR to the dealer you want an EV and when they say no say OK I am going to go buy a used car and will check back with you in a year to see if you have an EV yet.
Insist on the availability of a sub $15k 150mile minimum range Full Featured 4 door EV with a battery pack good for 100k minimum 150k average mile life (just like the EV1) and a battery replacement cost of $4500 or less again just like the EV1.
a $92,000 EV is as meaningless as NO EV at all.
By Stagger Lee on May 24, 2007 | Reply
15 years ago there were more than a handful (three now I think) of oil companies controlling the supply. They’ve cornered the market, it’s called a monopoly.
Twenty years ago we used to have gas price wars where each station competed to sell gas cheaper than the next, you’ll never see that again.
Yes Europeans pay more for gas but I understand about half of what they pay per gallon is taxes.
By Chris Taylor on May 24, 2007 | Reply
Also take the no refinery in my back yard thing with a grain of salt. Everytime they propose a refinery they INTENTIONALLY propse to build a refinery where they KNOW they will encounter enough resistance to make it impossible. Then they get to say “see we tried but you did not want it”
Off course you never seem them asking to build one in the middle of no where where no one gives a hoot. They do not WANT to. They know more refineries means more supply and lower prices. At first one would think they can just reduce productivity but then there plan becomes transparent and visible to the regular joe.
By having barely enough capacity they make it seem like see we are trying we just can not make it fast enough low supply high demand high price.
Its not coincidence people. Anyone who think it is is simply deluding themselves.
By Brian on May 24, 2007 | Reply
Justin
Inflation? No, inflation has nothing to do with it at all. Gas prices are at all time highs, adjusted for inflation. There’s NOTHING that can be rationalized by citing inflation when you talk about a 20% reduction in crude oil prices, yet gas prices increase by 40%. That’s NOT inflation. There has NOT been a dramatic increase in demand for gas in the US - not enough to cause a 40% increase in prices over a one year period.
The price floor has everything to do with keep “the little guy” (single gas station owner) in business, and not being squeezed out by the chains. Again, that has NOTHING to do with the price of gas rising with the price of oil falls.
By Glannon on May 24, 2007 | Reply
of course it’s manipulated! no kidding! we didn’t need a poll for that! My cousin actually works for Shell….the things I hear…….
By EZra on May 24, 2007 | Reply
I think the only rational theory is that the companies are purposely slowing down their supply. They certainly have the motive they work less and their product is worth more. They can’t do it all the time because then people will start making long term changes and the demand for gas will drop. They can get away with doing it for awhile because people are not likely to change their habits when they believe high gas prices are only temporary.
I wouldn’t call it a conspiracy just lazy.
By Ian on May 24, 2007 | Reply
I worked for Sunoco for years. Record prices are actually planned and projected as part of the plan to keep increasing profits and has very little to do with refinery upgrades for capacity and meeting EPA requirements for LSG and ULSD. OF COURSE prices are being manipulated, ridiculously so. Hell, the price of furbees and tickle me elmos were manipulated. I disagree with the validity of point 2 however. In the time I spent at the Philadelphia refinery the capacity of the existing refinery nearly tripled for kerosene, home heating oil, diesel, gasoline, and jet fuel. You don’t need to buld a new refinery to increase capacity, just increase the efficiency and productivity of existing sites. There’s no reason to utterly destroy additional eco-systems just to increase capacity.
By Dr. Bob on May 24, 2007 | Reply
For a great documentary on the source of gasoline (oil) have a look at this:
http://abc.net.au/science/crude/
It might make you think a bit about jumping into your horribly inefficient pollution-machines, using a resource that has taken 160 million years to form and then whining about it being too expensive.
By Not a fool on May 24, 2007 | Reply
Uh…basic economics…wait…here’s a link: http://www.investopedia.com/university/economics/economics3.asp
C’mon. If you controlled a portion of a resource that had no substitute wouldn’t you sell it for what you could? That’s just capitalism, the very same theory that drives our country.
If you don’t like the cost of gas buy a bike. Otherwise deal with it.
Gas is not a necessity, we just think it is. We never NEED gas to live, WANT gas to power our vehicles to make our lives easier.
Here’s a though. Instead of accusing oil companies of collusion, why not look at your own cities and towns? Ever wonder why cars get better fuel mileage at 55 than at 35? It’s nothing to do with stop and go traffic.
55 carries more momentum than 35 and therefore uses less fuel. 35 requires more force to keep moving. Blame your local congreesmen, not the oil companies.
By Not a fool on May 24, 2007 | Reply
Here’s something to really think about.
You’re out and it’s hot. You see a soda machine that sells water for $1.25. You easily fork over the money so you can have a drink. The bottle of water contains 16oz of the fluid. Ok, no problem. It takes roughly 7 16oz bottles to make a gallon. that comes to…$8.75 a gallon at that price.
How many bottled waters do you drink in a day? Doctors recommend 8 8oz glasses, or 4 16oz bottles.
So looking at it that way, who’s really dicking the consumer?
By Chris Taylor on May 24, 2007 | Reply
BUT there is an alternative to Soda and Water. I can buy larger cheaper bottles ahead of time. Those $1.25 soda’s are for the unprepared dummies. OR even better I buy a 40 cent drink mix and make a gallon of flavored juice. OR I drink a gallon of water from my HOUSE that cost me 3.27 cents.
In that case your buying CONVENIENCE. PLEASE show me an alternative to gasoline that I CAN REASONABLE expect to afford. We do not complain about $1.25 soda because its a convenience choice. I HAVE to buy gasoline. TO SURVIVE literally I need a minimum of 8-9 gallons of gasoline a week. this is if I ONLY drove to work and was able to handle all else online and got my groceries on the way to or from work (with a 54 mile ride thats easy)
There is no alternative. Trains and Buses actually cost MORE than those 8-9 gallons of gas cost me AND I can not afford the 6 HOURS a day minimum travel time that the train would entail (over 3 hours from point to point because of the round about path and wait times at each station)
I want a CHEAPER alternative not a more expensive one.
Gasoline is not a convenience like bottled soda and water is. ITS MANDATORY for our very survival.
I have to qualify that. Gasoline is not mandatory. TRANSPORTATION is and current the ONLY viable means if gasoline powered since they REFUSE to sell me electric powered cars. I can not afford the $10 grand it would cost me to BUILD an EV. So I am stuck. I MUST buy gas.
A bicycle is not an option for my 54 miles and ONE bridge and at least 10 miles of road are ILLEGAL for me to even ride my bicycle on. There is no way around the bridge and the 10 miles of road would take over 20 miles to “get around” even a straight run is still 54 miles !! how many of you can RIDE a century run 3-4 days a week.
I am 400 pounds (yes 100% my fault I am working on it) I have ridden 50 miles. its doable but it took me HOURS. about 1 hour for every 20 miles. Not bad for a 400 pound guy. 6 hours each way to work. Lets see 6 hours there 8 hours minimum then 6 hours home OOPS more than 24 hours. Ahhhh. I do not even think an OLYMPIC athlete could manage that kind of commute. Lets not even get into the dangers.
OH and doctors recommend 64 ounces NOT in water just TOTAL WATER. your food has fluids too you know. Dolt.
Let get real here a gallon of broccoli costs about $9-10 (not squished) does that mean I should be grateful for my $3 gas ? get a life.
By Ken on May 24, 2007 | Reply
Gasoline is not something your survival depends on. You knew what your commute would be when you took a job 54 miles away (or new your job was 54 miles away from the house you bought). You made your decision to live where you did and work where you do. Don’t blame the oil companies for your foolishness. What do people in other countries do? They don’t live that far away from work. They aren’t as stupid and lazy as most Americans are. We need gas to reach 8 or 10 dollars a gallon just to force us into a better way of thinking. My commute to work is about 2 blocks, I spent more money washing my car every week last year than actually putting gas in it. You complain about the cost of gas and how it impacts you but at the same time you admit alternatives are more expensive and less convenient for you.
No one is entitled to the highest standard of living in the world, it’s something we set up for ourselves and when we complain about the associated costs of it we look selfish and petty (which is true) Everything is subject to the laws of supply and demand. Since the demand of fuel is increasing, then the prices will go up. As long as people were buying less efficient cars, that’s what the automakers will supply. It’s not like they didn’t try alternative cars, but a half dozen GM EV1s that had a 50mile effective range, didn’t meet crash test standards, and would be inoperable in freezing weather don’t constitute a successful electric car. Even the Tesla Roadster only has a 250mile average range, cold weather, aggressive driving, and stop and go traffic (where accessories will still be running while the car’s not moving) will reduce that range considerably. I’ve seen estimates that it’s real world range will actually be around 100 miles. So in 10 years we’ve increased range 50 miles. At the same time Fuel Economy has remained relatively constant while the power output of vehicles has increased considerably. What does this tell us? That while automakers could have put their efforts towards increased efficiency, people preferred increased performance.
By deedee on May 24, 2007 | Reply
Personally I think all of them are full of it. Let’s start with Bush, hmmm he has stock in overseas oil and owns a large amount in Texas so wouldnt it be fair to say he is making a killing from his own People.. Notice he is not too concerned and after looking in the Democratic Partys site neither are they nor are the Republicans. They are still busy trashing one another over topics like: air in NewYork after 9/11, stem cells, abortion, etc. What about the “little” people who are spending a large chunk of their hard working money to pay for gas to go to work. Personally I think we all should buy a horse let it relieve itself all over the streets and do away with cars till it affects their pocket books.
By Jim on May 24, 2007 | Reply
Bill Shatner and Hank Rollins said it best:
Bill: I can’t understand why the price of gas suddenly rises when oil goes up…
Hank: …but takes months to go down *long* after oil falls!
By Chris Taylor on May 24, 2007 | Reply
Please educate yourself first. the Lead Acid EV1 had the short range and it was not around long. the NIMH version pushed 200 miles. TRY to learn about what you are trying to speak about.
Second I have been working this family run business for nearly 20 years. How much was gas 20 years ago ? 10 years ago ? I used to have a second job at radio shack that was 18 miles away I rode my bike to that when the weather was cooperative.
Do not try to look down on me you snot. I bust my ass to support my family and the Auto Makers REFUSE to sell to me what I want.
You know so much about the EV1 do yuh ? explain why they outright REFUSED to sell the last 14 to the people who wanted them who had 1.6 MILLION in cash in hand to save them.
They send them to the crushers LITERALLY actually sent there guys to INSURE they were actually crushed ? why they did not want a SINGLE one to survive so it could be duplicated.
Things are ONLY subject to the laws of supply and demand when they are on a level NON MANIPULATED playing field. THIS is not a level playing field. a 75 mile range is enough for me 150 is what is needed to work for most americans. I happen to be able to plug in at work so even a 75mile range would be enough to replace 90% of all my driving needs.
I never said the EV1 was a success on the contrary they killed it completely. I said IT HAD the technology needed to be a success. For the general populace to latch on it needed to have some minimums. the EV1 had all of them 15 years ago or 12 whatever it was it was over a decade.
The Nimh pack is minimally effected by cold weather (your harping on the lead acid batteries they tried to use while the NIMH pack was still in development) the lead acid pack WAS a dismal failure. thats why it was promptly replaced with the NIMH pack.
The Tesla roadster is meaningless. they are trying to do all the R&D thats already done and LION packs are not the answer too sensitive and too high a defect rate. If they had access to all the SOLUTIONS GM already came up with it would be a very different car (THATS why they were personally crushed and not just taken out of service) Why do you think the FEW that got into museums had the key components removed or destroyed? If it was a failure that would not have been needed.
Your talking out your butt. try making some sense. My van only has a 450-500 mile range and ONLY because it has a 35 gallon tank. with a 20 gallon tank its range would not be much better than the Tesla.
And thats with tesla having to make an EV without the benifit of all the work GM already did over a decade ago.
Either way the tesla is meaningless its nearly a hundred grand so who cares. Its like worrying about the efficiency of a Lambroghini.
By bob on May 24, 2007 | Reply
If it is gouging then our Republican run government is in league with the oil companies to benefit from the tax windfall.
By John on May 24, 2007 | Reply
Why does it take our suppossed congress to get in the act when prices for gas are this high? The refinery capacity excuse is old, the inventory excuse is old, the maintenance excuse is now old. The oil companies have been doing maintenance since before Katrina hit according to them. How long does it really take to perform annual maintenance??? And you do it just before the peak driving season in the U.S. ?? Do the math.
The price for a barrel of oil is 10% less now vs. a year ago.
Refining capacity(according to the oil companies) is only 5% less now than a year ago.
Demand is only up 3% vs. last year
Gas prices were less a year ago.
Yet, we see prices are up 40% in the last 3 months and still are setting record highs on a daily basis.
Record profits are still being recorded as each quarter passes throughout the calendar year(s) for the oil companies and, let’s not forget the Bush Co. Wonder why he hasn’t said a thing about the price of gas lately when the whole country is bitching about it on the news and locally on a daily basis? He is saving for his retirement at the expense of us, the consumer. He is delusional and needs to be impeached.
By Aussie Brad on May 25, 2007 | Reply
Here in Australia, the oil companies have conditioned the consumer that it is OK to pay $1.20 + a litre, so when it goes below that we are getting a bargain.
Now they are telling us that due to the summer in the northern hemisphere and America, the demand for fuel is higher, due to the holidays coming up and more people on the road, and in winter time it is the cold weather in the northern hemisphere causing a high demand for heating oil.
what excuse will they tell next price rise as they have used nearly every conceivable excuse so far, unrest in the middle east, broken pipeline in Alaska, Katrina, civil unrest in South Africa, hot summer, cold winter, peak oil, Tidal waves, demand for Singapore refinery products, unstable dollar………
Meanwhile the oil companies are getting gazillions in subsidies from the world governments for exploration, refineries and whatever they can gouge for, on top of making billions of dollars profit, but are closing down refineries in Australia and import it from Singapore, making us dependant to another country for something we used to do in our own country.
Bring on the alternate fuels!!!!!!
By captZEEbo on May 25, 2007 | Reply
Government getting in the way of business is ALWAYS a horrible idea. All this will do is prevent competition for better energy/gas sources and not let the gas companies grow at normal rates. And this will cost taxpayers money to regulate too.
By Chris Taylor on May 25, 2007 | Reply
captZEEbo - normally I would agree Government needs to be as small and as restricted as possible. BUT this is one of those things for which is the reason to even HAVE a government. Its to deal with “corporations” that get to large for the average consumer to beat with a stick. They are for when WE need a bigger stick. That is one of the whole PURPOSES of government to begin with.
It only costs us taxpayers money because we LET IT cost us money. Do a history search on the Federal BUDGET from 1900 to NOW its some VERY interesting reading. If we actually paid tax on ONLY what was needed for thr wellbeing of this nation and its people and NOT to line the pockets of politicians and corporations our taxes (AND our government) would be a FRACTION of the size it is today. Its been padded with “bloat” like bad software.
By das buckeye on May 25, 2007 | Reply
I sure dont see any gas stations running out of gas. If the supply is so low, why arent more places haveing to close because they ran out of gas!
Supply and demand my butt!
By dries on May 25, 2007 | Reply
Here in Europe it’s even more insane. We pay about 7.1 USD a gallon, which is a lot if you ask me. About 3 years ago it was twice as cheap, but the prices just keep going up and up.
By Bandy on May 25, 2007 | Reply
“we’re being screwed”, those last 3 words in your article sum up the sentiments perfectly. The interesting part is we are being screwed in the dark … so there is no way of knowing exactly who is screwing us either. Many of us are being screwed against our wishes too, doesn’t that constitute statutory rape? Uuuuugggggghhhhhh !!!!
By sarin on May 25, 2007 | Reply
Dont’ forget, for every penny increase in price of gas, the goverment gets 3 pennies in taxes.
By Check out timing of BP pipeline failure on May 29, 2007 | Reply
http://www.gregpalast.com/british-petroleums-smart-pig
By workinMOM on Jun 3, 2007 | Reply
I sincerely hope that people are interested in saving money. I work really hard for money to support my family along w/my husb. We can’t hardly afford to take a road trip up to the city 40 minutes away. We go there for SPECIAL occasions like every 6 months! It just cost too much and that cost is keeping us AMERICANS cooped up at home or staying close to home. DO ANY OF YOU EVER FEEL LIKE AN ANT IN A CHILDS ANT FARM TOY?
By D on Jun 7, 2007 | Reply
What I don’t get is they say hurricanes like katrina are
a big cause because of refinery shutdowns. Well
hurricanes have always been around and devestating yes
there’s been more in recent years but why weren’t gas
prices higher earlier ? all the sudden 5 -10 years it goes up
about 1.50-2.00 a gallon.
War in iraq , hurricanes , bad relations either way like
is said oil companies sure aren’t hurting —hmmmm
By Chris Taylor on Jun 8, 2007 | Reply
The trick is to STOP using gasoline all together. We need a new “fuel” that does not make us dependent on a corporation. I have created a website for what I consider the most feasible solution to this. You will note that there is not a single ad or paid link anywhere on the site. Its archaically simple for good reason. ITs not to promote anything except ACTION to fix this problem. The solution is quite easy ORGANIZING said solution is another matter all together. I will be fixing all the spelling errors and crap but just wanted to get something online. I am tired of doing nothing. It has to start somewhere.
http://www.nonewcars.net
We can not stop buying gasoline. it just will not work we will blink first in that kind of encounter and lose. UNLESS we simply no longer “need” gasoline. When I say gasoline I mean ANY fuel source we can not self generate this includes bio fuels ethanol and hydrogen. As long as we must depend on someone else to supply us with it then it will be absolutely NO different than gasoline is now.
By Keith on Apr 26, 2008 | Reply
I agree with your post, from what I understand it`s not so much supply & demand for the most part that affects the price at the pump but the damn speculators who could`nt give a rats ass how much we pay per gallon as long as they are able to rake us over the coals and laugh all the way to the bank. There is a website titled Close the Enron Loophole.com Congress must act now or I forsee an economic disaster not too far down the road.