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To: cake_crumb
So I have a tanker of gas to sell, in Mississippi I can get $2.50 a gallon, in Georgia I can get $2.20 a gallon. Choices choices.

If you lower the price of a commodity when there is a shortage you will get more shortages -- Not more of the commodity. Lowering the price produces not one additional gallon of gas. If you allow the price to rise to strike a balance with the market, demand vs price, you will alleviate the shortage and those that must will buy.

Free markets will find the optimum free market price. If you try price fixing, your next step will be to become the distributor and start demanding supply be equalized. The spiral is endless, as the managed economies have found over and over again.

Shortages will disrupt the economy, price cuts will please the people. Choices.
134 posted on 09/02/2005 12:18:48 PM PDT by Tarpon
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To: Tarpon
"If you lower the price of a commodity when there is a shortage you will get more shortages "

I know which is why I laid out the difference between the president's additive moratotuim and the governor's gas moratoruim. Also, I was AGREEING with you that we need more refineries, just pointing out for everyone (for the 100th time) that more refineries will fix the problem 5 years from now, not now.

137 posted on 09/02/2005 12:28:04 PM PDT by cake_crumb (Hey, what happened to my tagline??)
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To: Tarpon

>So I have a tanker of gas to sell, in Mississippi I can get $2.50 a gallon, in Georgia I can get $2.20 a gallon. Choices choices.<

Dropping state taxes will neither increase or decrease supply.It may marginaly lower the pressure higher prices were putting on demand.Their is enough price competition in the Atlanta market to assured it will result in a corresponding price reduction.


138 posted on 09/02/2005 12:29:38 PM PDT by Blessed
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To: Tarpon
"So I have a tanker of gas to sell"....

You sell it to the highest bidder on one of the commodity exchanges.

NYMEX unleaded for October 05 delivery was $2.1837 (down $0.2253).

For January 06 delivery it was $1.9287 (down $0.652).

The NYMEX wholesale trader doesn't care what your state gasoline taxes are, although you probably should.

Yesterday it peaked at $2.45 for October delivery.

Let's estimate what pump price that implies. Take $2.45, add the state gas tax ($0.075), the Federal gas tax ($0.184), mark it up 10% for transportation, credit card charges, and profit, add the state sales tax (6%), and this morning's pump price should be (drum roll)....

No less than $3.16 per gallon.....

140 posted on 09/02/2005 12:38:15 PM PDT by Sooth2222
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