Monday, April 10, 2006

Gas prices up

As I'm sure you've seen gas has been going up
lately. I hate having to pay more for gas, and since my dad works for gas stations I thought I'd have a little chat with him about it. From my observations when oil goes up on the stock market, pump prices go up, even though the pump is not directly affected for months. When oil goes down, gas stays the same.

In my local community State Farm employs about half the town. On state farm payweeks, gas goes up about Wednesday and stays up through the weekend getting all the state farm people to pay higher prices for gas.

Then there are the freak incidents, a bombing in Africa or Venezuala for some reason the prices go up. I think too often the gas company uses the potential world turmoil to make a huge profit, and last years profits from all oil companies seem to agree with that.

So my conversation with dad mentioned these things and he said that they do seem to affect the pump, but right now they aren't the driving force. Right now, the refineries are switching over from winter blend gas to summer blend gas and that makes supplies dwindle, which raises prices (thanks to my junior high social studies teacher for teaching me about supply and demand). So every spring gas prices go up at a time that you wouldn't think they would, and they do it again in the fall to switch back. This just blew me away. Why would we have a different gas for the summer and the winter. Just have one that works all year long. We don't want these artificially inflated prices. 17 cents a gallon. I've been stuck buying close to 50 gallons at this inflated price myself, which is an additional $8.50. Right it's not much for just me, but it's a ton when you consider the amount of gas being purchased at these places daily. I went out and found a decent post about summer blend gas. I still think that a better combination could be found that would work for all year and prevent these artificial inflations. We need to reduce the number of different blends of gas to make the refineries more efficient and that will allow them to produce more of the gas that everybody needs. Wouldn't it be nice if we could all use the same gas everywhere?