Bob Copeland wrote:
PeterCC,
Sorry for the delayed response.
In 18 months we went from being energy independent to having the highest cost
of fuel in 40 years. All this was self inflicted. My grandfather would have said
"we really screwed the pooch".
Bob Copeland
At times, it is difficult to empathize when someone with a jacked up pickup that gets 12 miles a gallon whines about $5 gas.
Gas was so cheap 18 months ago for the same reason Auto Cannonball records were shattered in the same period. Anything else going on that might have lowered the domestic demand for gas? Not a lot of people could fill the family car and take a spin around the living room during the lockdown, and a lot less commuters using gas either.
Now, the economies of the world are roaring back, and everyone wants to go somewhere. Plus, wages have gone up pretty much above the board, which is also factored into the price of a commodity.
One of the solutions that has come up for high gas prices is a holiday on gas taxes. The Fed. Govt. gets 18 cents a gallon, and has for years. So they don't do as well when people buy less gas, and there's less money in the highway fund. So they aren't incentivized to cut fuel purchases. If there was a gas tax holiday, the odds are not that gas prices would drop by 18 cents, but that oil companies would make 18 cents a gallon more, and the mechanism by which we fund highway maintenance would suffer.
Greed and Fear of Loss are two of the strongest motivators for the human race. Gas prices seem to be set by the oil companies greed and the consumer's fear of loss.