$3 gas fuels a fevered debate - Some see big rip-off, others a balance of supply and demand.

Sacramento Bee ^ | 9/9/5 | Dale Kasler

[SmithL]

pandering ping

[JackDanielsOldNo7]

I am sick of people talking about it. Drive for emergencies only then. Stay home and make whoppee with the wife. That is much more fun.

[JackDanielsOldNo7]

I am sick of hearing people talk about gas. Drive for emergencies only. Stay home and make whoopee with the wife. Much more fun.

[flashbunny]

countdown to the free republic situational socialist brigade showing up...

[atomicpossum]

You can't trust a politician in a situation like this.

And you can't trust Lockyer if his mouth is moving.

[Proud_USA_Republican]

Funny how everytime the California politicians put on a dog and pony show about this, the report always comes back to say the same thing.

The lack of refineries is the cause of high gas prices in CA.

[lilylangtree]

What's Congress doing about it? In the local paper dated August 23, there was a report entitled CONGRESS LOOKING AT GAS PRICES by Gannett News Service reporter Doug Abrahms. See below for the full article:

WASHINGTON--With gasoline prices setting new records, members of Congress are feeling the heat from constituents and are taking action--by scheduling a hearing.

The Senate Energy and Natural Resources Committee on Sept. 8 will look at factors pushing oil prices higher, including sky-high crude prices, limited U.S. refining capacity and increasing gasoline demand.

"While there is no immediate solution to lower the price of gasoline, this hearing is a start," Sen. Pete Domenici, R-N.M., who heads the committee, said in a statement. "Today's gasoline prices are taking a severe toll on Americans pocketbooks. Consumers are anxious."

So are lawmakers, who are back in their home districts on summer recess and are hearing from voters about high fuel prices. Regular gas rose to $2.61 a gallon nationwide on Monday, a record high, according to auto club AAA.

But the reality is that the oil and gasoline markets are global, and Congress can do little to affect prices, especially in the short term. The energy bill passed by Congress last month has done nothing so far to lower prices.

[My2Cents]

Last week, in the wake of Katrina, gas prices rose above $3.00/gallon here in the Sacramento area. What's interesting is that the vast majority of the gasoline marketed in this area comes from Bay Area refineries that obtain their crude oil from Alaska, and foreign sources, not the Gulf Coast. This week, gas prices have begun to come back down. I bought gasoline today for $2.94/gallon.

What happened last week is what always happens when a crisis hits anywhere in the world -- the oil companies panic, and raise their prices, and when the crisis doesn't appear to be as dire as first expected, the prices start to drop. What all of this means is that the price increase last week had absolutely nothing to do with supply and demand (well, maybe a bit with demand, because it was Labor Day weekend).

[flashbunny]

Yes, having several refineries in the gulf had nothing to do with the supply of gasoline.

[TChris]

Dresslar said the state's anti-gouging law prohibits retailers from raising prices more than 10 percent when either the governor or the president has declared a state of emergency.

As someone else appropriately put it: Would you like $3.00 per gallon gasoline which is available, or $2.00 per gallon gasoline which is gone?

You can't legislate the laws of economics away!

[ozzymandus]

Gas prices are going down (slightly) here after taking a big jump. I expect a gradual decline for some time.

[Sloth]

$3 gas fuels a fevered debate - Some see big rip-off, others a balance of supply and demand.

And not coincidentally, 100% of the latter group understand economics while none of the former do.

[stockpirate]

Gas in Oklahoma is $2.73.........and falling

[stockpirate]

Gas in Oklahoma is $2.73.........and falling

[Sloth]

Last week, in the wake of Katrina, gas prices rose above $3.00/gallon here in the Sacramento area. What's interesting is that the vast majority of the gasoline marketed in this area comes from Bay Area refineries that obtain their crude oil from Alaska, and foreign sources, not the Gulf Coast.

Completely irrelevant. If gas stayed at $2.49 (or whatever) in CA but went to $3.19 in, say, Texas -- then it would pay for oil suppliers in CA to truck their gas to Texas to sell it, creating a shortage in CA, and forcing the price right up to where it is.

[SengirV]

http://business.bostonherald.com/businessNews/view.bg?articleid=101320

[tobyhill]

Congress needs to subpoena all records and witnesses and get the whole story to the public. If it's a supply and demand issue then everyone needs to drop it but if there is enough evidence of gouging, price fixing or even monopolization then some people needs to be frog-marched in handcuffs to jail. I believe the biggest unenforceable issues with this situation is out of control speculators throwing numbers left and right without substantiating half of what they say like when Goldman-Sachs came up with the $105 a barrel number. I don't think asking for accountability is socialism nor is it unfair to any and all Americans but to make it partisan is a bunch of crap.

[My2Cents]

Gasoline producers do not "truck" their gasoline half way across the country. That's what pipelines are for. Calif. gasoline is typically piped to Reno and Las Vegas, NV, and to Phoenix, AZ.

[My2Cents]

having several refineries in the gulf had nothing to do with the supply of gasoline.

Not in the California market.

[Constitution Day]

Some see big rip-off, others a balance of supply and demand.

Some see big rip-off, Some are ignorant of economics, others see a balance of supply and demand.

There, I fixed that.