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High gas prices - why? And who's getting hurt?

GaryVincent | 30 April, 2007 19:55 | (744)

Maybe we are all just getting too used to gasoline prices soaring toward $3 a gallon every spring. At least I guess so, judging by the stories I haven't seen in the paper.

Where I live, regular gas was $2.68 a gallon last Wednesday. Friday, it had jumped to $2.75. By Sunday, when I filled up trying to beat the next increase, it had gone to $2.83. And tonight on my way home from work, it was up to $2.85.

But no one seems to care very much. I haven't heard a lot of talk about it. When it gets mentioned on the teevee, they just dryly report the latest leap in prices and let it go at that...not even an attempt to explain why.

Recently I read that part of the "problem" was refineries offline for maintenance. How convenient...just when the heavy driving season starts in the northern and eastern parts of the country, refineries need repair. And since product is scarce and demand is rising prices go up. Of course, given the choice of selling a thousand gallons at $2 or 500 gallons at $4, I'd take the latter. Wonder if the oil companies have figured that out? Sorry to be cynical, but really: IS there a good explanation for what's going on?

The world remains troubled and uncertain, but seemingly no more than the recen t past. The hurricane season isn't here yet, and I don't recall any huge refinery fires down in Texas.

We read a lot about "sub-prime" mortgages and the troubled housing market, but I suspect that for a lot of families already in the financial shoal waters, the recent runup in gasoline prices may be a more immediate threat to their ability to make ends meet.

Also, to what extent is the New Hampshire economy going to be hurt? Lots of people depend on summer visitors for a living. Will they drive here from Massachusetts, Connecticut, and New York with gas prices flirting with $3 a gallon? Exxon Mobil made close to $40 billion profit last year and a lot of that was due to sky-high fuel prices. The current trends seem to suggest it'll be another banner year for Big Oil. But what about the little guy?

 

Supposed Gas Shortage [Reply]

Well put. One theory I read about is that the high gas prices are partially due to increased demand and shortage of supplies. I think if that were true, we would see signs of a shortage, such as the long gas lines like in the 1970s or some stations running out of gas. I never see a line anywhere and I have never had trouble finding gas, so where is this shortage?

Posted by: Lynn Miller | May 04, 2007, 12:07

economics [Reply]

Supply-demand allocates a scarce commodity to the market that is most willing to pay a higher price. In this case one such market is consumer gasoline.

Hence, no lines and plenty of gas is available at $3+ per gallon.

Want to see lines? Artificially reduce the price at the pump.

Incidentally, one factor in the higher price has nothing to do with oil. Mandated use of ethanol increases the price and since, it also yields lower mileage it creates more supply-side pressure.

I am convinced that ethanol is good only for the corn states and in an election season that is important to the politicos.

Posted by: John Bachman | May 08, 2007, 07:37

Deal with it [Reply]

Let's face it, we have a refinery shortage not a supply shortage, coupled with the fact that the U.S. has not built a refinery in the US since 1976, yet our consumption has doubled....seems pretty simple to me.

Posted by: LEON WASHINGTON | May 08, 2007, 08:52

[Reply]

Gov. Lynch sure isn't helping by building a 20,000 sq ft home on a former sacred apple orchird. I wonder how much fossil fuel he will use to heat his humble abode?

Posted by: Josh Tiffany | May 08, 2007, 08:59

gas prices [Reply]

the answer to the high gas prices is
the same illness that has infected
the white house as well as the
defense contractors that get rich on blood money while the rest of us pay
the bills.
there should be a country club named for them.
it's called GREED, and they are
called GREEDY GUSES.

TED A. HOOD

Posted by: TED HOOD | May 10, 2007, 09:40

Gas Prices [Reply]

If you believe the "official" story they say it is because imprts are down and some of the refineries were shut down for repairs.
Next if you really think it is so bad go north to cananda or to europe and see how much they pay.
It really is about money and the reason no one says anything is simple.
Has anyone ever seen any results come out of the congress over the years when they "investigate: these spikes?
I think therein lies your answer.
Nothing is going to change it and it does not matter who is in charge in Washington because they are ALL greedy. corrupt puppets financed by everyone but you and me.

Posted by: Bill Brewster | May 16, 2007, 13:14

How will governor Lynch heat his 20,00sq ft home [Reply]

Goernor Lynch loves to tell us how to live, perhaps he should consider how he is going to heat that behemoth of a mansion?

Posted by: Shannon Tweed | May 17, 2007, 16:49

[Reply]

Nonsense!

Posted by: gary claremont | May 17, 2007, 17:04

[Reply]

Hs wife will probably pay for it...she makes more than he does!

Posted by: Jac Palance | May 17, 2007, 17:05

No way [Reply]

shame on you, Govrner Lynch has lots of bidness exp. I think he ran a Hardware store or an Ikea

Posted by: Malcolm in NH | May 21, 2007, 07:49

Gas attack [Reply]

Higher gas prices, who's getting hurt?.....

Those who have to live off of a limited income such as SSI. This effects those of us

that have no increase in the money we receive.

It effects the elderly, and the disabled. It effects that family living from paycheck

to paycheck, and you know many are having a difficult time with that.

It effects those with such a low income, where every penny counts, to the point they go

without things they need like, medications, letting insurance policies lapse, buying

less food!

It is getting to the point people are almost to the point that they can't afford the

gas so they can get to work, so they can make more money for gas! How assinine is that?

This effects those that have little in the way of "extras". Those who really can't

afford that vacation to Six Flags, Disney World, or what have you. I had really wanted

to take my kids to Hampton Beach during the summer. I wanted to let them experiance

what I did while growing up. Walking the beach, playing in the ocean, visiting the

arcades, and buying a few simple momentos for them. It would have been nice to venture

up north, in the Francoina Notch region to check out all those nifty natural tourist

attractions, even though I am not a tourist I live in the state.

I have not seen my mother, in months because of the gas prices. Neither she, or I can

afford the gas it takes to get to and fro. The children miss their grandmother. As it

is she is one of those people that is walking that fine line of not being able to

afford the gas to get to work!

I know there are those more well off that don't even bat their lashes when they fill

up. One of my friends can't even tell me how much gas is where he lives, cause in his

own words, "I don't look". He drives a Hummer, I am sure those are not cheap to fill!

Then there are people like me. I am disabled, and I do live off a very small income of

just over $1,000 a month. Like everyone else I have bills. Rent, car payment,

insurance, gas, electric, heat, and food. Those are the must haves. That leaves little

in the way of phone, let alone "entertainment!

It has gotten to the point I will drive over to another town to save money on gas! So

the cheapest gas station gets my money! Not all of us can ignore the costs! I bargain

shop for my gas, and trust me if you are cheap enough and not too far away, where I'd

not be saving money, I am coming to you. I will also let my friends and famly as well

as complete strangers know where the cheap gas is! Word of mouth is a very powerful

thing. Station owners should keep this in mind!

So this summer we will be stuck home once more. I live in Nashua, and would like to be

able to drive out into the country this summer, but I can't.

I'm sure there are many others in the same boat. I know I am not the only one.

Posted by: C.B | May 22, 2007, 09:40

Give me a break [Reply]

High gas prices hurt now, but until consumers find a way to translate that pain into behavioral changes, not one damn thing will change.
You think politicians owe you lower gas prices? That fuel companies should be forced to quit ripping you off? That either of those things is going to happen because you wish, wish, wish?
Look: Not everyone can take a job closer to home or buy a more efficient car or just quit driving. But anyone can organize a car pool to work, shop or for fun. And anyone can write a letter or start organizing a campaign to get better bus and train service. Sure, it's easier to grumble, but New Hampshire isn't supposed to be about doing things the easy way. If it were, everybody would have already moved to Florida.

Posted by: Alasdair Stewart | May 23, 2007, 14:32

Has the Gas Co. Profits Gone Down? [Reply]

No! But, if there are legitimate problems with refinaries or whatever excuse they should go down or, at least remain stable.

Since 2001 the five largest gas compaines have made $280 Billion in profits, continually rising. How do we stop this? Presidential candidate dennis Kucinich has a very simple answer that actually has the middle class, not the corporations, in mind: YOU TAX THE EXCESSIVE PROFITS.

Kucinich's plan will tax excess gasd company profits to prevent their price gouging. Thus, the sales price of gas to you and I will not be taxed and will not increase. The plan will only tax the profits.

Incidentally, if you want to see why we are still in Iraq and what that new supplimental bill does for the big oil companies in stealing Iraqi oil, look here: http://kucinich.us/node/4547

Posted by: dexley | May 29, 2007, 23:13

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