Gas Prices, One Month Later
Crude oil prices haven’t changed greatly. Yet, when you look at this chart, US average gasoline price has risen tremendously! I highlighted last April’s crude oil prices and prices for March, April and May of this year. When crude was around $66 a barrel, our gas price was about $2.80 a gallon. This year, gas prices hit $2.80 and continued up regardless of the price per barrel. The news reports blame the continued price increase on refineries doing their periodic maintenance. I am glad that this ‘maintenance’ didn’t affect us last year as it is now!

To be fair, US oil companies haven’t built a new refinery since the late 1970s. Government regulations and environmental groups have seen to that. So what can we do? Having a nationwide boycott for gas for a day isn’t going to do squat. However, there is talk about picking one oil company, for example Exxon since they are the largest, and boycotting them completely for a few months or so. The thinking is that they will have to reduce their gas prices, hopefully to a point well below other oil companies, in order to sell their inventory. At the point, a price war could ensue.
It would be great to believe that this plan would work. It does have the potential power of millions of drivers. Perhaps we shouldn’t start with the largest since they can hold out longer. Perhaps an oil company that has a less-than-stellar environmental and worker record, say BP Oil, might be a better choice. They have been hit with rather heft fines lately. You would think that they are watching their finances a little more closer than the other guys. Just thought …
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