Posted by
JINGOIST on Sunday, January 06, 2008 12:18:39 PM
America's politicians truly think we are a collection of abject idiots! Their utter contempt for our intelligence is becoming more evident by the day, especially where gasoline prices are concerned. Recently the U.S. House of Representatives started hearings on H.R. 1252, a House bill that would make gas price gouging a federal crime, punishable by 10 years in prison. Speaker Pelosi (the bug-eyed hippie from Haight-Ashbury) has already promised to fast track this legislation through the U.S. House. Yes, Nancy's radical--and not very bright--but she is smart enough to realize that her constituency doesn't understand what causes gas prices to fluctuate. God forbid that she should be honest with San Francisco's voters! My own "beloved" populist RINO Governor of Florida, Charlie Crist, called for Congressional investigations into "possible excessive profiteering" by the oil companies. They KNOW the truth.
Let's settle this gasoline price issue once and for all. When you fill up your car or truck, the price that you pay per gallon is the result of supply and demand, competition, and last but not least: exorbitant state and federal taxes. And here's a shocker, the same politicians who call for price gouging investigations into the oil companies are the ones MOST responsible for the jacked-up prices. Government profit from taxing gas is more than TWICE what is raked in by "big oil." The U.S Energy Information Administration charts tell the story. The occupants of the smoke-filled rooms are Senators and Representatives, not oil guys.
Oil and gas are commodities. Supply and demand are the most important factors determining the pre-tax price of both. If the world oil supply increases marginally and demand increases faster, the price will go up in a commensurate fashion. That's the world's present situation. With the vast increase in demand coming from China and India, the price for a barrel of oil has been rising. So the oil companies are paying more for a barrel of oil. Demand is outpacing supply.
Our economy is smoking and Americans are driving more than ever. These are GREAT economic signs, but they come at the same time (early summer) as a relative gasoline shortage. Again, demand is UP, supply is DOWN, and this forces the price of gasoline.... up! There is no apocryphal conspiracy here, just the simple laws of supply and demand. Why did the gas supply go down?
There are two factors that affect the gas supply. Municipalities across America demand different blends starting in late spring and early summer to control smog and air pollution levels. Some refineries have to shut down and retool every year to produce these "boutique blends" of fuel. This interruption alone results in supply shortages and is made even WORSE by the fact that environmentalists have led the charge in blocking the construction of new refineries since the 1970's! This is a national security issue folks.
Competition is the last significant factor in gas prices and the one we consumers understand the best. That final 10 cents in the price of a gallon is the result of one station owner trying his best to beat the guy down the street. They don't make much on gas, the store uses it's gas to get you to buy beer, silly lighters, and Doritos! Competition keeps local prices as low as they can possibly be.
So when politicians lie to you about the big, mean, greedy oil companies “hosing” the consumer, just remember that the price of gas is determined by supply and demand, state and federal taxes, and local competition. Remember who those politicians are, and SEND THE LIARS PACKING COME NEXT ELECTION FOR INSULTING YOUR INTELLIGENCE!!
Morgan Orlins