Do Conumers Have the Power to Cause Gas Prices to Drop?

Associated Content ^ | 05-04-07 | Ranger

[mission9]

By consent of the Internet community, this May 15th has been declared "National GasOut Day." In the last few days, if you have an email address, you have probably received the memo. One version reads like this:

NO GAS...On May 15th 2007 Don't pump gas on may 15th

In April 1997, there was a "gas out" conducted nationwide in protest of gas prices. Gasoline prices dropped 30 .....

[Arrowhead1952]

I also had a left leaning woman ask me to join the 15 boycott. I asked her if she intended to change her driving habits for the day or just not buy fuel. She had the “deer in the headlights” look. I told her the best way to cut her fuel bill in half is ride to work with a neighbor and drive every other week or by 2/3 by riding with two other people.

When I told her to carpool to work with a neighbor or friend, she said that was impossible in case one of her kids might get sick at school. I asked her how many times in the past two years she had to leave work to pick up a sick kid. That really ticked her off and she started babbling. I said, “I bet you haven’t had to take off time to get a sick kid in quite some time”. She left and was huffing and puffing as she walked away.

[HangThemHigh]

"Our just in time delivery system means that a hiccup in consumption could break the price spiral."

Any guess as to which way the price will go after the 'price spiral' is broken? Hint: it won't be down.

But in reality, a one day event won't affect anybody but the retailers (and you may get to stand in line to buy your gas tomorrow). Now a month long boycott would really get everyone in the supply train's attention.

[brewer1516]

That’s great. In fact, one of my hobbies include dumping logic and reason on a liberal and watching them sputter, fume, and/or explode. Unfortunately, they make it too easy sometimes.

[aruanan]

Do Conumers Have the Power to Cause Gas Prices to Drop?

Yes, but not by stupid stunts like clogging the beltway around Washington, D.C.. Washington D.C. doesn't set the prices for gasoline. If so many people buy so much gas that the supply becomes relatively more scarce, then the price will increase. If they drop off in the amount they buy so the supply becomes relatively more abundant, then the price will decrease. Also, if people buy so much that it becomes profitable that new supplies are obtained, then the price can fall again. Unfortunately, in this case it is federal law that is preventing or limiting the use of already discovered resources and environmentalists that have convinced lawmakers to limit our use of them. If you want to change the law, change the lawmakers by targeting key congressmen who support the restrictions on petroleum discovery and development and processing and vote them out.

Of course, that requires a lot more work than bringing the big rig to one location on a single day.

[thackney]

In April 1997, there was a "gas out" conducted nationwide in protest of gas prices. Gasoline prices dropped 30 .....

Just so there is no doubt that this claim is false.

U.S. Regular Retail Gasoline Prices, Cents per Gallon, Weekly
from the Energy Information Administration
http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usw.htm

1997
03/31 120.0
04/07 120.3
04/14 119.9
04/21 119.9
04/28 119.5
05/05 119.3

[buck61]

Building a new refinery or 2 would help a whole lot more. I think you know who opposes that.

The out put of gasoline is today what is was twenty years ago.
There have been no new refineries built in twenty years.
Now try projecting in your mind the difference in the number of cars twenty years ago and, the amount of cars we have today on the highways.

Kind of sways the law of economics toward the gas companys favor,
supply and demand????

[Arrowhead1952]

See the reply I just had here. What really gets them going is when I tell them the riders that paid $25.00 per month, now get reimbursed the full amount of the ticket cost for riding public transportation.

[thackney]

There have been no new refineries built in twenty years.

No but the refineries we have have been upgraded and expanded for twenty years. We processed 20% more crude oil in 2006 than we did in 1986.

http://tonto.eia.doe.gov/dnav/pet/pet_pnp_inpt_dc_nus_mbblpd_m.htm

[GRRRRR]

I am NOT a CONUMER!!!

[NucSubs]

Being conservative is impolite.

http://www.ibdeditorials.com/IBDArticles.aspx?id=262292683898327

[Dutch Boy]

You are right. The answer is more refineries. Even the left has stopped crying about an oil shortage. It’s now harm to the environment.

If the people want gas prices to fall they should march on Washington demanding that more refineries be built. There should be demonstrations in the street every day.

[Arrowhead1952]

Thanks. This part is so true.

And because we've allowed leftists to define the language of political good manners — ..... — the sort of person willing to speak the truth isn't always the sort of person you want to be seen with.

Thanks for giving me a lesson on being impolite. < sarcasm>

Did I really need a sarcasm tag?

[bert]

Those of that have diesels know that after many months, the price of diesel dropped below the price of regular gasoline.

[cbkaty]

Why stop at one day? There are 364 more you can do without.....maybe it would be free by then?

[Smokin' Joe]

Blame eeevil....ethanol.

We do not have the capacity to produce the ethanol mandated as an oxygenating additive in fuel. We have to import ethanol, and iirc, there is a 42 cent per gallon tariff on the stuff.

In addition, it cannot be pipelined large distances straight, or even when blended with motor fuels, because it absorbs water and will corrode the line. It has to be transported separately and blended with the petroleum fraction near the point of sale.

This all adds to the price of a gallon of fuel.

But wait... There's more!

In addition, the cellulosic ethanol is not really in production yet, so the ethanol produced here is largely produced from corn, which is becoming more expensive as feed for cattle. It turns out many of the same starches which make for good food also make for good alcohol production. So beef prices will be increasing as well.

Now doesn't that give you the warm fuzzies?

So for all the usual MSM vitriol blaming eeevil oil, it just might be eeevil ethanol instead.