The price of gas
By Jim Dornblaser
February 03, 2009
The price of fuel (gas included) is regulated by the demand on
a base amount of supply. We are living in a capitalistic free
market society & I for one am GLAD, HAPPY, wouldn't want
it any other way.
Supply here is by barge. If a barge runs round trip from the
refinery to Ketchikan it will take about a week per load.
Let us suppose the retailers sold gas at 10% mark up & the
usage went up to 1 1/3 barge loads per week. The supplier would
have to buy another barge & tug, plus hire a second crew.
His cost to supply you just doubled so the cost would go up accordingly.
If the gas companies regulate the price so that one trip per
week will maintain the supply, then the extra investment of increased
volume for transport plus increased storage becomes unnecessary.
Way too many of our society want Government to 'fix-it' when
the answer is " why require price controls + the rationing
that would follow when it's not broke now".
The simple answer is "CONSERVE". When the supplier
can't sell all of his supply, price will come down, & NOT
We as a whole have become a spoiled society totally addicted
to our personal transport. It has become a status symbol, entertainment
system, temporary home away from home, & all around play-toy.
When necessity requires a moped, most of us drive a LARGE SUV.
Last but not least, while we as a whole scream for lower prices,
maybe we could figure a way for EPA to further regulate the oil
industry & drive the price even higher.
(recently of Ketchikan)
Thorne Bay, AK
Received January 27, 2009 -
Published February 03, 2009
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