Now This Is Stupid

Gallup asks: Where Will Gas Prices Be at Year’s End?. To answer, they take a poll.

Now in fairness, that’s what Gallup does, take polls. But seriously, who gives a rat’s ass what the “public thinks” the price of gas will be? Will knowing what we think have any impact on prices? For that matter, will it have any impact on anything — well, maybe on car sales.

But what I would like to know is why doesn’t someone in the “press” explain why prices have dropped so precipitously (about 18% nationally, much more in some locations)? Crude oil prices have dropped about the same percentage, but crude prices are only part of the price of gasoline. There’s taxes (45 cents on average), transmission, refining, delivery, retail. None of those costs has dropped and oil market prices simply don’t explain the decrease.

What does?

5 thoughts on “Now This Is Stupid”

  2. Election year. After November watch the prices rise again. Well, only, if the Republicans win.

  3. I’ve been saying since the drops began that it is a political ploy, a simple trade-off. Those in control are willing to forego a few cents profit per gallon now in order to maintain control of the U.S. House and Senate for the far greater gains to be made in the future. Gas prices will go back up no matter who wins. If it’s the Democrats who take power, it’ll go up to show everyone how wrong they were to elect them. If it’s the Republicans, it’ll go up because they will have gotten what they were after. Then in two years it’ll all start again for the big election of 2008.

  4. Anyone who believes political donations or inclinations have anything to do with gasoline prices clearly doth not know their ass from their elbow. It’s called simple supply and demand. The major supply consraint being refining capacity in this country. Ever wonder why prices in Colorado or California are historically higher than those on the east coast in the summer? Regional constraints! Then again, schedulers for oil companies could be conspiring for the candidates of their choice, but they are probably more concerned with buying low and selling at the highest the market will allow.

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