Artificial Reduction In Gasoline Cost

[ThomWV]

It is difficult for one to imagine how the price of gasoline at the pump has actually dropped more than the price of oil at the well-head.

Here is a way I have found that you can tell if the price of gasoline is being manipulated; compare the price of regular unleaded to the price of diesel fuel at the same station. They should be within a couple of cents of each other, and if anything the diesel should be a little bit less expensive.

When the price of diesel is above regular unleaded you may safely assume the price of gas is being artificially pushed down.

When the price of diesel is far below regular unleaded you may safely assume the price is gas is being artificially increased (price gouging).

At the moment diesel costs about $0.40 more than regular. One would think there was an election coming.

[napi21]

1. I don't have to do any calculations. I KNOW it's being manipulated!

I take this artificial price reduction is solid proof that this admin. has called in a favor and the oil co's want to keep the Pubs in power!

[Rainscents]

5. I only have HS education and I can see this shit miles away.

[ComerPerro]

16. I always watch threads like this, because sooner or later

some BushCo or corporate apologist who had one college econ class and for some reason has blind faith in "the free market" shows up and tells us that its all supply and demand, and that we are too stupid to understand, and that the prices aren't being manipulated.

But, like you said, anyone can see it. Its common sense. Just look around. No calcuations are necessary.

Anyone who thinks the system is honest, or that in this country the "free market" and "supply and demand" are real things, really needs to wake the fuck up.


Its so suprising to see people think that way on a liberal board...

[demosincebirth]

2. It doesn't take a rocket scientist to figure out that gas prices are being

manipulated by the Oil Companies. One indicator is when republicans are in office and its close to election time and their poll numbers are in the s***ter.

[Gman]

3. Same thing happened in '04 prior to the elections

Of course, last year was not an election year so prices went sky high on the Katrina/Rita excuse. Katrina could blow away every refinery on the Gulf coast this year and prices would still fall for the election.

What they don't understand is people still know they are being gouged even if gas is as "cheap" as $2.00 a gallon because they set about trying to create the mindset that $3.00 gas is fair. I've no doubt all of this is an outcome of Cheney's closed door energy task force meetings. Of course they don't want us to know what went on in those meetings.

[kineneb]

4. Can we say: Election Time? I thought we could. n/t

[spanone]

6. Well, when BP closes the Alaskan pipeline & prices go down....

what else needs to be said? It aslo dispels the 'supply & demand' theory.

Repeat EVERYTHING THIS ADMINISTRATION DOES IS FOR POLITICAL PURPOSES

[Rosemary2205]

7. Diesel is bein manipulated too.

If any of the pump prices were in any way related to the actual cost of getting the oil out of the ground and refining it then I'd agree with you. But we now have a situation where supply is deliberately manipulated by speculators.

[catmandu57]

8. If people don't understand this

then we're fucked, that's all there is too it, it doesn't take mach to see that big oil is protecting the reptiles, using up some of their record profits, it's not going to hurt those assholes to lower prices for a couple of month, they'll gain it all back and more on top next year.
If we take the House and Senate windfall profit taxes are going to be popular, hell, they know that and are counting on john q's short memory and low intelligence to carry it off, let's hope they're too smart for themselves this time.

[filer]

9. It's time to fire up the Hummer and let the good times roll.

Happy days are here again! Heck, at this rate of decline, gas should be a buck and a quarter by Christmas. Oh that's right, Christmas is after the November elections. More like three and a quarter?

[ProdigalJunkMail]

10. your understanding of petroleum production

and consumption is extremely lacking if THAT is the model you use...but hey, keep on believing. Or, check out the futures markets once in a while...

sP

[ThomWV]

11. Actually My Knowledge Of The Market Might Suprise You

I spent over 20 years as an energy analyst for DOE, I am an economist by training, though my degrees were taken years ago. I understand where and how the price of oil and its products is determined and how both hedging and speculation effect current price. What I posted above is a rather simple rule of thumb, and its one that will lead you in the right direction every time. That is my opnion of course. Maybe you could illuminate the world on how it really works and give an easier marker for the average Joe to spot in 2 seconds while he drives down the road. This was the best one I could think of.

[Nickster]

12. Ohhh I got it. Drive across a state border, look for the sign that says

welcome to "Insert Red State Name" then look at the first gas station. Notice that the price is significantly lower than the Blue State that you just left. Then check your calender and notice that it's very close to mid-term election time. How's that?

[ProdigalJunkMail]

15. nope...your expertise stated in the above

post is not reflected in the original post. You cannot have held the positions you mention while having that simple a view of the petroleum markets...keep pushing it though. Someone might believe you.

sP

PS...Diesel prices in most of the US are ALWAYS 10 to 20 different than reg unleaded (higher or lower depending on the current swing in prices). But hey...any average Joe who drives a thousand miles a week could tell you that...

[elocs]

13. I last bought gas on July 13th and it was $3.01/gallon.

Today it is down to $2.74 where I live. I have long been curious about the relationship of the price of diesel with the price of unleaded regular and how it is sometimes above and sometimes below.

[elocs]

17. Whoops, gas went down another nickel here and is now at $2.69.

Diesel is at $3.09 a gallon, coincidentally 40 cents a gallon higher than regular unleaded. It's Labor Day weekend and you would think they would be ratcheting up production of home heating oil which usually increases the price of gas. Well, we know what's going on so you would hope the rest of the people could figure it out too.

[Deja Q]

14. The last time oil was $71/bl, it was $2.69/gl gas in the US...

And definitely under 33 cents/liter in China...

It does seem a bit low...