one huge contributor to price increases this time of the year is when the refineries switch to summer blends. There are so many different state and local laws governing the types of gasoline allowed i.e. referred to as botique gasolines. When we lived near Louisville, KY in Jefferson County the gas was alway 20-30 cents higher than surrounding areas because of the "special" blend required in Jefferson County for so called anti pollution. The same thing happens in CA where there are even more varieties....hence higher prices. It was proven time and again that the special blends delivered no better air environment results than other areas. A consolidation/standardization of blends across the USA would have a significant impact on availability/cost/pricing. Politics and special interest groups are in the way.
Another big factor this year is the number of US refineries that are shut down due to lack of demand for gasoline. These capacities could be brought back on line to ease the false short supply line due to the closures.
Also for the first time in many years the US refineries have begun exporting gasoline....due to lack of domestic demand. Anybody want to bet that the oil companies are still exporting gasoline?
These very real examples underscore the oil industry controlling supply and demand and of course pricing.
These examples also demonstrate some very easy to implement corrective actions to help improve availability and pricing to the so called unstable economy and giving we the people the benefit of lower gasoline prices of days of old (not that long ago).
Until we the people demand more than just a simple price reduction we will continue to be last in priority to the oil companies and the puppet politicians who are on their payroll.
We the people get exactly what we deserve....by allowing non action to continue....NOTHING!!!!
btk
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