As I was pumping $63 out of my pocket at a local station I noticed that there was only one other customer and 8 pumps. I haven't seen or read any news stories about long lines at gas stations anywhere in the country. No 'OUT OF GAS' signs hung over pumps. If gasoline is readily available there is, by definition, no shortage. Lack of refinery capacity? Isn't the Bush-Cheney energy plan a thing of beauty?
Pigailia
Buy a Prius and vote with your dollars.
My thought...
Artificial Inflation.
Companies, with the knowledge that regardless of price our society requires gas, decide to cut back on production. So while demand remains the same/increases the supply side remains unmoved or perhaps reduced.
http://www.econedlink.org/lessons/EM650/images/marketScheduleGraph_1.png
Supply moves to the left/remains still while demand moves to the right.
Makes better sense than putting prices on the fault of Katrina or the "travel season"
If I'm way off base someone please do correct me.
In the 70's OPEC decided to embargo oil supplies to the U.S. It causes gas shortages and unbelievably high gas prices at the pump of over 50 cents a gallon.
When people started buying more gas efficient cars, they decided that was bad business and changed their approach.
Instead of relying on "The Government", make better choices.