Like most Americans I have no idea what controls the prices of gasoline.  There doesn’t seem to be any rhyme or reason to why the prices fluctuate.  The local state government lifts taxes on gas for a short period to reduce the prices (Something Illinois did a few years back).  Though for some reason the price per gallon doesn’t go down by the amount of the tax removed.  Okay, perhaps the price of gasoline kept rising and offset this a bit.  What is really disturbing is when the tax was put back on the gasoline the price rose more than the tax!

What I have been trying to understand is what happened in September of 2008.  Starting in September 2008 until mid December 2008 the price of gasoline dropped by $2.70 (from $4.30 -> $1.65 ref.)  No government “stimulus”, no action by other groups.  Basically the economy was officially in the shit and gas prices plummeted, but why?  I wish I have an answer, but I don’t.

Now, sixteen months later gasoline has been on a steady increase, rising as the “economy improves” (so they are saying).  No reasoning, no rationalization, it just is.  The true control of gasoline prices is so controlled.  I believe it is used as a way to control our economy.  If you think about it there is currency more important to the global economy than oil.  NONE.  If you come up with one, I would love to here it.  Everything relies on oil and its prices have a heavy affect on the lucrativeness of all operations.

We saw this prior to September 2008 when gas was expensive and everyone was crying about it.  I am not saying it wasn’t a real issue because it was.  Nobody enjoyed paying $80+ to fill up their vehicles.  But of course it hit everywhere.  Carriers increased costs and added “surcharges” to offset the increased fuel costs. Airlines did the same.  They needed to show their customers that their price is low, but there is an extra charge for gas.  To me their price is high as I always conciser the bottom line, its irrelevant how they got to it.

So keep an eye on the general gasoline prices in your area and listen to the Markets reports. As the markets improve you will surely see the prices rise and rise.  The will keep rising until  the masses start crying again and everyone ends up paying for their ‘relief’ (the money has to come from some place, right?).

Maybe there is something to using gasoline prices as an economic measuring stick.

Advertisements