Posted on 04/18/2006 8:09:46 AM PDT by ex-Texan
WASHINGTON (Reuters) - President George W. Bush said on Tuesday he is "concerned" about high gasoline prices, and pledged that the U.S. government will keep a close watch out for profiteering.
"I'm concerned about higher gasoline prices," Bush said at a Rose Garden news conference to name new staff appointments.
"The government has the responsibility to make sure that we watch very carefully and investigate possible price-gouging, and we will do just that," Bush said in unprompted remarks about energy prices.
U.S. crude oil futures hit a record of $70.88 a barrel on Tuesday on fears of supply disruptions in Iran stemming from its nuclear standoff with the West, as well as lingering outages in Nigeria.
U.S. retail gasoline prices rose 10 cents last week to average $2.78 a gallon, up 29 cents over the last three weeks and 55 cents higher than a year ago, the government said on Monday.
Bush said high crude oil prices, rising summer driving demand and a switch to new motor gasoline standards is keeping gasoline prices high.
"It's tight supply worldwide and we've got increasing demand from countries like India and China, which means that any disruption of supply ... (is) going to cause the price of crude to go up," Bush said.
More drivers will take to the road this summer, which will also boost demand, he said.
"At this time of year people are beginning to drive more, getting out on the highways, taking a little time off," Bush said. "That increasing demand is also part of the reason the price of gasoline is going up."
We don't live in never-never land.
Reality is what it is.
Prices go up when demand exceeds supply.
Period.
A rise in price causes demand to decrease to the point it matches supply: when gas prices go up, people buy cars with better gas mileage and start car-pooling, which decreases demand.
Artificially depressing price causes demand to chronically exceed supply, which eventually results in shortages. Shortages lead to rationing. Rationing leads to corruption.
Bottom line is, what do you trust more? The free market system, or government bureaucracy?
Government bureaucracy has caused health care costs to increase from 1% of GDP to 15% of GDP in the last fifty years.
Government bureaucracy has created dangerous inner-city public school systems that resemble prisons rather than places of learning and cost $10,000 per year per student, half of whom are functionally illiterate at graduation.
The choice is up to you.
Minnesota, I believe. I doubt that's what the profit police have in mind, though.
What exactly do you call $3.00 per gallon and exhorbitant profits. What does he expect....
Well said.
Got it.
Prices in Destin go up each year regardless of the cost of gas, the economy, etc. I guess they get their price......but it won't be from me.
Nicely said!
NO, and NO again...
If this company was selling ice cream, that's one thing...But it's not, it's oil...A lot of folks have to buy this oil in the winter to stay alive...And some don't make it...
There's no competition...We pay or die...
36 billion bucks...That's 3,600 stacks of 1,000,000, dollars PROFIT...And that's fine IF I chose to buy their product and make them rich...But when they force me to pay them, something needs to be done...ANYTHING...
In my state, gas tax proceeds are dedicated to roads. How exactly would I benefit from ending road construction and maintenance, and laying off DOT employees?
The market is telling you something...use less!!!
Sure he does. Look at how great he did with the Texas Rangers!
That's pretty cool...
Where's that bunny picture when you need it?
It's HOW they do it that wrong. trading supply and demand is one thing. Creating an artificial fear market is another.
I'll just stay bent over and take it since it's the patriotic thing to do. </sarcasm>
Ya, there are about 5 that service the U.S...And they eat, sleep and pro-create together...Think of your hand, with 5 fingers...
It will not be a sudden drop, so you're safe. They will have to burn up all those long contracts first. Cheap oil will be stacked up for next winters futures, if there is any cheap oil to be had that is...
You'd think O'Reilly would learn after awhile.
No.
Hydrocarbons are simply not comparable to stocks. Hydrocarbon fuels are a controlled commodity combining limited and quasi-monopolistic capacities for acquisition, refining, and distribution. The free market plays a limited role in the sense that producers can force non-use of the product (over a very long term) by over-pricing it, but the capacity for short-term "gouging" (taking advantage of product-need without regard to production cost) remains a problem in any controlled commodity market.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.