Rebound in gas prices raises suspicion of politics

[Newsjock]

Top of the front page this morning
http://pressdemocrat.com/EarlyEdition/article_view.cfm?recordID=5568&publishdate=12/09/2006

By GUY KOVNER
THE PRESS DEMOCRAT
Saturday, December 9, 2006

Ramping up to an all-time high of $3.33 a gallon in May, California gasoline prices fell nearly $1 by Election Day in November but since have rebounded by 10 cents, a pattern that some experts say may have been influenced by politics.

"It's not out of the realm of possibility," said James Bushnell, University of California Energy Institute research director.

... The post-election price uptick "is surprising because there doesn't appear to be anything going on fundamentally to back that up," said Michael Geeser, a AAA of Northern California spokesman.

California oil companies had a clear interest in "keeping gas prices out of the news" with controversial Proposition 87, an oil production tax, on the Nov. 7 ballot, Bushnell said.

... In early May, when pump prices were peaking, the refinery margin, which includes both the cost and profit of refining gas, was $1.06 a barrel of gasoline, according to the state Energy Commission.

On Nov. 6, the day before the election, the margin was 46 cents a barrel, down 57 percent from May.

[soothsayer]

1. I was thinking this last night when noticing gas had gone up 20 cents

since my last fillup.

[SpiralHawk]

2. "This is fabulous for me and my republicon oil cronies." - Commander AWOL

"So you proles can just shut up and sit down (after handing over your credit cards). We republicons are 'special' and have a special right to make Massive Profits off our little Oil War. And always remember, Big BushCo loves you."

- Commander AWOL and faithful sidekick Dick "Five Deferments" Cheney

[dbt]

3. Duh.

:evilgrin:
dbt
Remember New Orleans

PS: Duh.

[Richard D]

4. Exactly what I was going to say

[liberal N proud]

5. Suspicion? I would call it evidence of said activity

The lowest gas prices in a year were on November 4th here in the Cleveland area.

[Bigmack]

6. Can DU start a "Well...Duh!" forum for stuff like this? nt

nt

[Phrogman]

17. LOL, really.

[Rex]

7. There is never anything going on to 'back up' the excuse for price

gouging. Never ever. It is corrupt and evil to do to the working class and poor. When you make 6 bucks an hour, gas becomes a major drain on the pittance of income.

Fuck the people who price gouge. I hope they rot in Hell.

[Ian David]

8. I propose a $55/vehicle per year tax on non-commercial vehicles that get less than 25 MPG

Edited to add:

That's non-commercial LAND vehicles.

Non-commercial boats and watercraft (INCLUDING Jet-skis) should be taxed AT LEAST double that amount.

[Bjorn Against]

11. Only 55 dollars per year? How about 55 per month?

Charging a person less than 5 dollars a month for a vehicle that does far more damage than that to our roads and environment is not going to change people's habits. People need to be hit hard. In fact I would support it 100% if they wanted to ban new SUV sales completely for non-commercial use (and commercial use should have serious restrictions as well).

[Ian David]

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More:
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[TomInTib]

9. Any time diesel is higher than unleaded, something is wrong

Here in Marin, diesel is 20 cents higher than premium unleaded.

And diesel is far less expensive to refine than gasoline.

[Strelnikov_]

15. That Would Be My Fault

In spring of '05 I started my preparing for the coming energy smash by trading in for a VW TDI (diesel).

About this time, it seems the unleaded/diesel price dynamic (DSL 20c lower than UNL) that I have known all my life came unglued.

A few months ago, diesel was going for a 70 c/gal premium over unleaded here in Iowa.

I have seen all sorts of explanations (demand, ULSD regulations) that probably have some merit. However, I have reached the conclusion that it is mostly 'because they can'. Diesel is primarily an industrial fuel and is therefore more inelastic than UNL (industrial users simply pass along the cost). Also, since the price of DSL is somewhat removed from the publics attention, it is a safer gouging profit center.

Oh well, I am at least emitting less (albeit higher priced) carbon.

[ClintonTyree]

10. No, it's just the annual HOLIDAY price increase.....

because as we all know, for three weeks before and after *THE HOLIDAYS* we Americans are driving all over the place and using much more pertroleum than normal. Right? RIGHT? :eyes:

Actually, it's the year end raping of the consumer that BIG OIL engages in each and every year at this time. They've come to depend on it for their year end balance sheet. They've never quite been able to anticipate that yearly up-tick, it always catches them by surprise. Imagine that! :eyes:

I don't think anyone with a functioning brain expected anything else after the elections. BIG OIL did everything they could to ensure the status quo in Congress but people actually took time to peer through the bullshit this year and their ruse didn't work.

[thingfisher]

16. Is it a conspiracy?!

Or is it just supply and demnad at work? More demand is an excuse to up the price right? Sound economic practice for free market capitalists, right? More people driving = increased demand = higher price (the only question is how high can we go and get away with it?)

Just wait until all our water is contolled by private enterprise!

[truthisfreedom]

13. I think an investigation is in order. And we finally have the manpower to do such an investigation.

It's wonderful what being in the majority can do for an investigation.

[goforit]

14. Duh!

[sofa king]

18. Gee, how could that happen?

Oh yeah, it was by having the CEO of Goldman Sachs dump six billion dollars' worth of gasoline futures on the market in an election year, a month before becoming Secretary of the Treasury.

http://www.kellerkomments.com/2006/10/gasoline-price-manipulation.html

As blogger Raymond Keller put it on October 2nd, "guess which way gasoline prices will head after the elections, after the markets absorb the billions of dollars in gasoline futures contracts that Goldman dumped on the market?"

[NMMNG]

19. Gas in my area went up by as much as 9 cents/gallon

within one week of the election. I was expecting it of course.