RugbyD wrote:news item: "Private company makes large profit on product that makes the world, especially the US, an awesome place to live."
news item: "Principle of supply and demand operating exactly as it should."
am i missing something here?
Well I'm not sure what it is like in the States but in Canada it certainly is a problem. The oil companies may be breaking our anti-trust laws. There is a big investigation into price fixing. Up here all of the gas stations raise and lower their prices in unison. There is never any competition for customers because it seems like they all have an agreement to keep their prices the same. The gas companies deny it but we will see what the investigation digs up.
Another thing is that there is a misconception that there are actually individually owned small gas stations. The fact is (and this was news to me) that the smaller name gas bars (up here Beaver, Econo-gas etc) are actually owned by the big gas companies. They did this to make it seem like there was actually competition. It appears as if the gas companies own the distribution centres effectively shutting off free market competition.
The last thing that they are investigating is the claims of the gas companies that the price at the pump is actually directly linked to the price of crude. Nobody really believes this. As soon as there is any upward movement in the price of crude the price at the pump jumps within hours. If the price of crude drops however it takes weeks to make its way to the pump. So if there is just a downward spike that is corrected, the price never goes down at the pump. But if there is an upward spike that is corrected, the price does go up at the pump.
and btw - I hope that there is more than oil that makes the US an awesome place to live.