Tuesday, February 28, 2012

Why We Are Paying More at the Pump

via Sean Hannity Discussion by dad49er on 2/27/12

Very interesting article that makes some points I hadn't thought of. Without much commentary from me I submit it for discussion:

1) Volatility in the Middle East

No kidding, been going on for thousands of years, even before there was such a thing as the automobile and gasoline. What can be done about it? Very little apparently, despite thousands of man hours trying to reach a brokered peace it hasn't happened, and isn't likely to in the future.

2) Growing demand from Asia

With demand here decreasing the oil companies have to make it up somewhere, and demand is booming in Asia. The oil companies could choose not to export, and keep our prices lower, but can we really expect them to do that? Some will call it Unamerican, others will call it the markets at work. Personally I can't blame them, but it sure isn't helping us here, not most of us anyway.

3) Gasoline formulation requirements

Very true in California. The only solution I see is the United States adopting a uniform formulation. Could that ever be agreed to? I'm very skeptical it could.

4) An improving economy

A good thing,right? Maybe not, Americans feel confident enough that they will take that vacation, that means more travel = more gas (AKA increased demand) = higher prices. Americans might start spending more, that means companies produce more product, and that takes fuel, which leads to higher fuel cost.

5) Summer

The seasons stop for nothing. Unavoidable.

6) Taxes

State and local taxes vary, and despite the fact many politicians consider raising taxes political suicide it still happens as states and communities face budget short falls. In some places voters even give themselves the increase. In this case politics is local.

Link:

http://news.yahoo.com/why-americans-...183758416.html

Looking forward to your thoughts.

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