February 20, 2003
HERE WE GO AGAIN!

In the last week gas prices have been rising everywhere. My station has increased it's price by 26 cents in the last week! Is it just coincidence that prices are rising? The oil company execs must be smacking their lips right now deciding on where to deposit all the "unexpected" profits. According to good old supply-and-demand economics, the price should only increase when demand increases. Has demand increased, NO! I realize the economy is much more complicated than "Economics 101", but why such a dramatic increase! Futures on crude oil, especially "light sweet", the high-grade dinosaur juice that we need to refine to clean burning gas, has increased too. Is it fair to say that the price increase is ONLY due uncertainty in the market and all the while "coincidentally" creating even more profit for oil companies? I like to think it's not a conspiracy of any sorts, but it makes me wonder if there's not some truth to it. Now, how far will the price have to go before the car dealerships lots start filling-up with mongo-SUV's that have been traded in by budget minded and "green" consumers? Is this only a temporary crisis?

Posted by Vic at 10:41 AM