PriusChat prepares for more traffic - Gas to go up by $0.25

<div class='quotetop'>QUOTE(MarinJohn\";p=\"70981)</div>

Like anything else, gas prices only fall in response to competitive pressures on individual stations. These take time to act, because the information takes time to flow around, decisions take time to be made, greed causes resistance to price decreases, etc.

On the other hand, increases in retail gas prices follow closely upon increases in wholesale gas prices (because stations aren't realistically able to sell gas for less than they pay plus a profit margin). Unlike the retail price of gas, this is decided upon centrally at refineries (well, ok, it's probably more like an auction than a decision). So it happens vastly faster.

This is a pretty common "friction" in markets for all products. It's just a lot more obvious with gas prices because the volume is so high compared to individual stations' ability to warehouse.

 

I think our goverment should raise fuel prices. Everything that's profit to the government would go into roads. It could also be used for other programs at times.

An idea i had a while ago is to raise the prices on a schedule. 50 states in the US and 52 weeks a year. For two weeks, the US would not have higher prices. These two weeks can be exercized before two major holidays. A little gift for people participating. If your state is "participating" for it's chosen week, then your gas would raise by x amount.

The funds generated would help fund Highways. If decided upon, or voted, the program would help fun other programs as well.

 

Re: PriusChat prepares for more traffic - Gas to go up by $0

MarinJohn wrote:

They do go down. Taken from http://www.eia.doe.gov/neic/brochure/oil_g...imer/primer.htm :

Seasonality in the demand for gasoline - When crude oil prices are stable, retail gasoline prices tend to gradually rise before and during the summer, when people drive more, and fall in the winter. Good weather and vacations cause U.S. summer gasoline demand to average about 5% higher than during the rest of the year. If crude oil prices remain unchanged, gasoline prices would typically increase by 10-15 cents from January to the summer.

 

If crude oil prices remain unchanged, gasoline prices would typically increase by 10-15 cents from January to the summer.

last time i heard.. crude oil prices are going up.

 

i think gas prices should be raised now and put into a trust that will fund the distribution network for the next generation of fuel what ever that is.

 

David:

Hear hear!

Then again, that has too much common sense, so it will never happen.

 

i was afraid you were gonna say that.