Gas prices reach all-time highs in America May 21, 2007Posted by Matsu in Business, News and politics, Random.
At the risk of being flamed by my readers living outside of the United States, let me say that the recent jump in the cost of gasoline is going to be a significant drain on the US economy. And to make matters worse, while the price at the pump goes up past record levels the cost of crude oil in April was $7 per barrel less than a year ago. At the same time the price per gallon is 50 cents more than it was last year. Something just doesn’t add up, the raw material (crude oil) price is down and the finished product (gasoline) is up, significantly. Oh, and did I mention that the oil companies are making record profits? The biggest profits in the history of not just the fuel industry, but of any industry, ever. WOW! I wonder who is in control of the price and profits. Hmmmmm.
To read more about the current state of gas prices, read this MSN Money article. Along with a good review of the current state of oil and gasoline prices it also provides a breakdown of the average price of gas in every state. I don’t know why, but New Jersey has one of the lowest prices right now.
Obviously, while I may be getting my facts from a reliable source (actually, several sources), the rest of the statements are all mine. I don’t usually rant in my blog posts, but this time I’m making an exception. I understand the concept of a free market economy and forces of supply and demand, but this is getting ridiculous.
I don’t like the idea of more government controls or intervention, but it seems that something has to be done by someone. All of the goods and services are affected by the price of transportation (which is dependent on fuel). So, such a sharp rise in costs can really cause havoc on the economy. Just as fast as the gas company profits go up, all other businesses’ profits will drop. In the end, we will all suffer.
Bert, oh great and all-knowing crude oil connoisseur, help me out here. What is one to do? How is this going to turn out? Speak, oh great oracle of the crude!