Monday, October 29, 2012

Gasoline Pricing for Amateurs

Most gasoline consumers have little idea of how gas prices work. Unfortunately, they take the path of least critical resistance and always blame the oil companies and/or speculators. They learned what they feel is accurate from the political demagoguery of politicians who always take their best route for getting votes from an unknowing public.

The subject is complex because of tough, ever-restrictive, and often unreasoned government environmental regulations on oil production, refining and distribution.

Then there are heavy government taxes. On top of that are other restrictions, limitations and regulations. The speculators simply exaggerate short-term pricing; their effects can be to lower as well as raise pricing.

There is a bottom-line solution here: produce more oil and gasoline. That over-rides the other complexities. Moreover, the U.S. is awash with hundreds of years of supplies, which would cost us Zero in balance of payment debits.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter)



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