Welcome to the yard on the left. A place to contemplate, relax, and rant on the right.

3.13.2007

Hey, who jacked up gas prices?

While we weren’t looking, there’s been a slow, steady climb in the price at the pump. The latest Lundberg Survey reports the average price of a gallon of regular unleaded, nationally, is now $2.55 a gallon. That's up 20 cents a gallon over just the last two weeks, and is the highest prices we’ve seen since September. Sadly, we have become complacent and desensitized to high prices and have gotten used to paying more for gas. Even $3 a gallon would be palatable, as long as we don’t get there too fast. That’s why the slow bleed method of rising prices (up 20 cents, down 15, up another 20, down 15, lather-rinse-repeat) is a winner for Big Oil.

Milwaukee gas prices are in a stable pattern right now, but are predicted to keep rising into summer. These price increases have been made a part of the spring ritual, as predictable as the emergence of crocuses.
(Crocus imperati)

Here’s a website to help you find the lowest prices around our area

Supply and demand drive the price of any commodity, and there’s always more than one reason given for a limited gasoline supply: Planned maintenance and repairs to refineries, blend switchovers, a refinery fire, overseas political unrest disturbing crude supply, and the Bush administration’s answer for an energy policy, longer Daylight Savings Time. (Yes, it is actually raising demand.) It’s like there’s a rolodex of reasons that just keep getting thumbed through.

What we need is more refining capacity, but it’s been 30 years since a new refinery was built. The oil companies say they want to, but are held back by environmentalists. As long as that standoff continues, gas prices will be vulnerable to any little ripple in the supply chain. When a huge disruption, like Hurricane Katrina, comes around, we really see the weakness of the system. All of this is just fine with Big Oil. Too much supply and the price would drop.

While unemployment is up, wages are down and benefits are nonexistent. The gas prices are killing the lower and middle class that are making lower wages. This shouldn’t be a shock to anyone. We elected (sort-of: don’t get me started on that rant,) oil men for president and vice president for eight years.

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