Friday, April 11, 2008

Freedom to Pay More in All These Surges

While working on my taxes, this patriot came across a gas receipt from January 2007. I purchased 13.1 gallons of regular unleaded gasoline for $1.769 a gallon. The bill totalled $23.30. Compare that to current prices of $3.25 and it makes one wax nostalgic. So why the big surge in gas prices, especially as economic growth virtually stopped the end of 2007 and may turn into decline in 2008? Shouldn't those market forces mean a draw down in gas prices?

Well, it turns out what goes up, doesn't come down very fast, if at all. The 85% surge in gas prices is a clear indicator. I'll wait to see the corresponding surge in oil company profits and the mind boggling growth of oil profit fueled sovereign wealth funds.