"The Real Looters Wear Pinstripes: Profiteering on Disaster"

[Bush_Eats_Beef]

http://counterpunch.org/lindorff09032005.html

Ten percent of American oil production is off line because of Hurricane Katrina. That has led to a nominal increase in the per-barrel world price of oil, since 10 percent of U.S. production represents only a single-digit portion of world demand. Yet gasoline prices in the US have soared, from about $2..40 per gallon before the hurricane hit to over $3.00 a gallon now nationwide-a jump of 25 percent.

Local gas station owners say that they have to raise their prices immediately because they only keep a few days' supply on hand and need to have the cash to pay for the next delivery, which will be priced at the new higher wholesale rate. I am inclined to believe that, if their new price is only around 20-25 percent higher than before.

But clearly, somewhere between the oil coming out of the ground or into a port terminal, and those retail pumps, some businesses are cleaning up at the expense of the public.

Read that: the oil companies are gouging and profiteering on disaster. All you need to do is look at the stock pages. Haliburton, the oil services company, is up from 28.69 to 62 over the year. Exxon/Mobil is up from 45.09 to 64.37 over the year. Sunoco is up from 30.26 a year ago to 73.22. The list goes on and on.

[BlueJac]

1. You got that right!

:kick:

[proud patriot]

2. yup

[jrthin]

3. AMEN. nt

[Spinzonner]

4. It seems to me that this system of making the dealers

pay up front for the gas is a major factor in driving run-away price inflation, especially in times of crisis and uncertainty.

How do the oil and refining companies handle the transaction and bookkeeping with regard to company-owned and operated stations ?

Wouldn't some kind of consignment arrangement help to contraint some of the panic element of the run up by not putting the independent station owners in the middle, at risk ?

I see that there are potentials for other problems here, but a price spiral is not in the publics benefit.