Explanation of gas prices

[widebody911]

http://consumerist.com/consumer/features/why-is-gas-so-freakin-expensive-263887.php

[kach22i]

Despite popular misconceptions, price gouging almost never occurs as prices rise. Instead, price gouging occurs when dealers keep prices artificially high in order to gain a little extra profit or recoup costs, even though the DTW price has declined.

Yep, they just keep the prices up there as long as they can.

Michigan has the highest gas prices in the nation right now, it all sucks.

Dang butterflies.

[Porsche-O-Phile]

The "rocket and the feather" syndrome is the best way I've heard this explained. It really doesn't take much in the way of powers of observation to see it in practice either. . .

[Rick Lee]

I think the headline on USA Today the other day read something like, "Holiday Drivers Ignore Gas Prices".

As long as that's the case, then prices aren't high enough. Why should they drop, when demand does not go down and supply does not go up?

[Rick Lee]

BTW, how does the law define "price gouging"? Why can't home sellers in CA or NYC be charged with the same thing? Don't we all charge what the market bears? I love seeing "market price" next to lobster or whatever in a restaurant menu. Sort of make me wonder if the rest or their entree prices are subsidized or special sales.

[David]

I'm one of those liberals that think gas taxes should be increased to raise the price and lower demand and increase funds for infrastructure improvements. I was surprised that only about 20% or the US favors this.

[Rick Lee]

Originally posted by 125shifter
I'm one of those liberals that think gas taxes should be increased to raise the price and lower demand and increase funds for infrastructure improvements. I was surprised that only about 20% or the US favors this.

I'm a right wingnut and favor this as well. There should be a floor tax to ensure gas never gets below $xx per gallon, regardless of the actual market price.

[kach22i]

Originally posted by Noah
Liberals ........ Liberals ..... they .........Liberals

You are getting sloppy Noah, you can only use the "L" word so many times before it loses it's impact.

Did anyone catch AutoLine Detroit this weekend?

On the same topic, here are some of the letters to the show:
http://www.autolinedetroit.tv/autoline/viewermail.php

[dd74]

Originally posted by Noah
Liberals and gas prices...

I was in the decidedly liberal enclave of Malibu over Memorial Day. Didn't see a single hybrid. Saw lots of Suburbans, Hummers, V12 Mercedes and Ferraris. This, in itself, is no surprise. What's surprising is the degree to which these very wealthy, high dollar contributors to Hillary and Obama are decidedly not in step with Bagley Jr. and Farrell. In short, these guys couldn't give a crap about off-shore drilling and gas use/environmental issues.

Rather, you should see the environmental chaos a typical septic tank supporting a 5,000 square foot beach house can cause. If the liberally-minded residents don't care about that, I can understand them not being concerned about gas prices, use, and the resulting environmental impact.

[KNS]

I also agree with John McElroy about gas prices, he is right on.

[pwd72s]

Originally posted by Rick Lee
I think the headline on USA Today the other day read something like, "Holiday Drivers Ignore Gas Prices".

As long as that's the case, then prices aren't high enough. Why should they drop, when demand does not go down and supply does not go up?

+1! If everybody would figure out a way to use just one gallon per week less, supply and demand would drop the price.

Hmmm, takes me about a gallon per week to keep my lawn mown...

[TheMentat]

Originally posted by Rick Lee
I think the headline on USA Today the other day read something like, "Holiday Drivers Ignore Gas Prices".

As long as that's the case, then prices aren't high enough. Why should they drop, when demand does not go down and supply does not go up?

Not necessarily true! To use an economist's terminology, gasoline is very price inelastic in the short run. Another commonly cited (and more extreme) example is insulin. If the price of insulin spikes, demand ain't gonna change much. It takes extended periods of high prices for consumers to develop alternatives over the long run.

Originally posted by Rick Lee

I love seeing "market price" next to lobster or whatever in a restaurant menu. Sort of make me wonder if the rest or their entree prices are subsidized or special sales.

LOL +1!

[speeder]

Originally posted by Noah
One thing I've never been clear about when it comes to Liberals and gas prices is which way they actually want them to go.

On the one hand Liberals love to bemoan the environmental destruction caused by car emissions and rant about the terrible egomaniacs who drive SUV's, and condemn anyone who proposes that oil exploration be expanded and more refineries built. All of this is in the service of two ideas: Americans pollute too much, and we're too "materialistic" (whatever that means).

But at the same time they also admire the European way of doing things -- the obsession with global warming, the high taxes, the tiny, fuel-efficient cars, the $6 a gallon gas prices.

Well guys, which way is it? Do you want to spin conspiracy theories about the evil Bush administration and indulge fantasies about "price gouging" and "windfall profits"? Or do you want to celebrate something you've always said you wanted -- higher gas prices?

Sorry for sounding so confused. I know Liberals pride themselves on being a lot smarter than the rest of us knuckle-draggers. I'm sure one of you can explain this to me.

Those old-school liberals that you refer to are just angry that the price increase is not the result of outrageous, ~300% tax on each gallon of gas. It is going to the oil companies, not the government. They believe that the proper role of government is to control people's behavior through punishing taxation and draconian laws that keep people from doing what they want to do, like water ski and drive around the country for recreation.

[Rick Lee]

But the gubmint IS getting far more of a cut of the price of a gallon of gas than are the oil companies. State and fed. gas taxes avg. 18%, while oil companies' profit margins are around 8-11%.

[hytem]

Is it true that Hummers get 20 mpg in the city? That's what the TV ad says I saw today. And how do they get away with using that Jeep grille? Maybe they have a license for it.

Gas prices have nothing to do with Liberals or Right Wingnuts (LOL). They have everything to do with supply and demand. Demand is up in the summer, and supply is probably tight with all those gas guzzling SUVs lined up at the pump. Fortunately, Saudi Arabia is keeping the oil flowing to the American junkies, so we have no shortages--so far.

[Flatbutt1]

I say pump out the oil as fast as we can , burn it all up as fast as we can...then move on to an alternative and stop all the fussin' and fightin'

[dd74]

It's just supply and demand.

Bicycle John over on Hollywood Way in Burbank has an alternative if you guys think you're getting it up the rear from the oil companies.