Tuesday, April 25, 2006

The Oil Industry is out of control.

Somebody please answer why if someone in the Middle East experiences flatulence the price of gasoline goes up in the America. This is not a new development either, or something a terrorist cell has done to affect the financial stability of America, it has been going on for years.

The day after Iraq invaded Kuwait I was pulling into a gas station when I noticed the sign out front with the price increased fifty cents since the day before. I was completely confused wondering what the stupidity of Saddam had to do with the price of oil. Of course, I understood that any oil coming from that region after the attack would have been more costly, that was common sense. The part I did not understand was why a price increase had taken hold on fuel already purchased, refined and presently in the ground at gasoline pumps everywhere.

Once something was purchased and ready for the consumer the price structure has already been defined, and it was done so at the price set upon purchase. The problem with the price of gasoline the consumers of America are facing is the price is being increased exponentially, markup on top markup, ad nauseam.

We often ask ourselves how the government can allow the oil companies to get away with what is a clear case of price gauging and we already know the answer to this; they donate very large sums of money to politician’s campaigns that is why.

Now President Bush is bowing to the demands of republican leaders and is launching a two-pronged attack upon increasing oil prices. Tuesday the President ordered a temporary halt to deposits to the nation's strategic petroleum reserve to make more oil available for consumer needs and relieve pressure on pump prices. To combat the growing prices President Bush has ordered an investigation into possible cheating in the markets. The government also asked states on Tuesday to guard against unfair pricing.

The oil companies could care less what Washington is going to do because they have already made huge profits from their pricing games and they will never return the price to its initial asking price.  

1 comment:

Anonymous said...

I have to go and fill up my tank today ~ It'll be interesting to see how much higher it is than the last time. Maybe I should take out a loan...Ahhh! CA living!