Every year we can expect gas prices to rise in the spring. Oil futures know the demand for gas rises in the summer. They also try to blame this spring rise on a switch to summer gas. They say that refineries need to be shut down for maintenence before the switch to summer gas. Switching to summer gas is basically adding an additive, I simplified it. Which is basically so many parts per gallon, which consists of dumping it in.
High gas prices are caused by high crude oil prices. These prices fluctuate daily and are account for 72% of gas price. The reamaining 28% comes from distribution, refining and taxes, which are more stable. They also charge by the barrel although there are no longer barrels of oil. It is now just a unit of measurement.
Gas prices fluctuate quite often but the past few years the spring rise in price has been coming earlier and earlier. It seems that most of the price rise is caused by an influx of money into the commodities market. Investors have fled real estate, although it is making a very slow comeback. They have also fled dividend funds for oil futures. The sudden surge is driving up oil prices, creating a speculative bubble.
The rise in price is also partially caused by Zone Pricing. Say gas is $3.75 a gallon where you live. You ride 15 miles away and the price is $3.63 a gallon. This is the basic principle behind Zone Pricing. Same gas company is also selling to both stations. All of this is based upon the location of the gas station. Zone pricing is also said to be to blame for the price hike.
First they are switching over to sumner gas in the middle of winter, sounds like a crock. Then they are closing refineries for maintenence for summer gas, it is adding an additive. More of a crock. Zone pricing, the idea alone is ridiculus, another crock. Commodities driving it up is also a crocj. It is the speculators that are causing most of the price rise. They think it will sell so the price rises, generalization. That and price gouging, which is not getting enough attention. We are using less gas, yet paying more. Th that destroys the idea of supply and demand. We also are less reliant on foreign gas than ever before. So in my opinion PRICE GOUGING is the main cause.
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