Gas Price Venting

Beginning in January of 2008, the price of oil has gone up substantially, breaking every record. Not surprisingly, the oil companies made record profits in the 1st AND 2nd quarters of this year!

By the end of May (2008) the price of oil per barrel was $130 and climbed as high as $142 in June. Since that hike, the prices have begun to come back down. Finally, the price has begun to drop. The price of oil has dropped every day for the last 20 days.

Today (right now) (this instant) the price is $120 per barrel. You’d think that gas prices would drop with the oil prices, right? Of course not! Why would they?
I watched a news report last night on this very topic. The reporter was investigating why the price of gas in Utah is still above the national average.

Today, the national average for regular gas is: $3.84 per gallon.

Here’s an idea of what people are paying for regular gas around the country today (per the iea.doe.gov):

California: $4.20
Colorado: $3.89
Florida: $3.88
Massachusetts: $3.85
Minnesota: $3.61
New York: $4.10
Ohio: $3.68
Texas: $3.76
Utah: $4.15
Washington: $4.14

The #1 reason the local gas companies touted for not lowering the price of gas in Utah was this: We bought the gas at the higher price and that’s what we have in stock. Once we get the new gas in at the new price, we can pass that on to the consumer.

What!?!?!?
So let me get this right: When the price of oil went up, we saw the cost hike at the pumps the VERY SAME DAY. Those gas companies didn’t say, “well, the gas we have in stock was purchased at the lower price, so we will keep it low until the new gas price comes in then pass it on to the consumer.”

On the news, the reporter finished her report with something to the effect of, “So hang in there. The gas prices will catch up. And that’s good news, something to look forward to.” Wow! Thanks KSL! You’re the best! Way to help me keep my chin up.

So if you’re bugged by your gas prices, hang in there, it’ll catch up and before long, you’ll be paying what you should – but by then the national average will have dropped and you’ll still be paying more than that at the pump – but keep your chin up and hang in there.