With gas prices falling, I should probably try to look up some numbers. According to most of the economists I heard a few months ago, the only reason gas prices were high was because of supply and demand. Oil speculators, they said, were not behind the high prices at the pump. So what I’d like to know now is, what’s changed? Is supply up significantly, is demand down significantly, or is there some other explanation?
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Gas prices rise every year from around Memorial Day through late July-Early August, then decline through the remainder of the year. Because the general price level was so high in the spring, when it had its normal rise after Memorial Day, we really felt the pinch. The lowest grade peaked around $4.65 at my usual fillin’ station; Today it is about $3.33.
Check out this price graph from Gas Buddy, and click on a six year view. You’ll notice the pattern I described.
i kinda knew about the summer spike, but i also knew that this year’s edition seemed way outta proportion to most other years that i’ve been driving. like, as far as i remember, usually it spikes up maybe 20-25 cents — enough to notice, and maybe grumble about, but not much else. this year, the spiking started early and kept going. like i said a while ago, it took almost 4 years for gas to permanently (?) break the $3 threshold, but it went from $3 to $4 in less than 6 months? and it was all supposed to be because of supply and demand? now that it’s going back down, i’m just wondering where the demand was that caused that particular spike.
i talked to my mom the other day. she said that gas in jersey is back below $3. there’s a spot in DC where i’ve seen it for 3.10. hopefully, we’re NOT permanently past $3. but that just suggests me that some shenanigans were afoot.
I should add that I agree something else was going on. The price of crude is half of what it was in July. I’ve heard some conspiratorialists say there was a design to time it to help McCain in the fall, and I wouldn’t put anything past the Bushies.