I've gotten mine to 13.something gallons and still had 30 miles to go according to the computer.

Sorry to burst your bubble, but gas prices aren't strictly controlled by supply and demand. OPEC is an oligopoly so the normal rules of supply and demand don't always apply. With OPEC the market isn't competitive at all. Partially, I hope, prices are based on OPEC's marginal costs but without any competition they really can soar to whatever level OPEC chooses. OPEC isn't completely stupid which is why our gas isn't more expensive than it already is, but they're dancing a fine line of getting the most money possible without having to sacrifice their demand. Entire classes at universities could be taught about the perverseness of OPEC. Sorry, this is kind of long-winded. I majored in Economics at the University of Texas at Austin.

 

Basically what I was saying....

After reading more, I agreed that Exxon and such companies are making a fair profit... having said that, OPEC still sets the price per barrel. I highly doubt Exxon or any gas companies profits are regulated by the price per barrel. They're going to make their 9% (or whatever number that may be) regardless if the price is 25 dollers per barrel or 100.

The original point was that OPEC maximizes (and as lacynpiper so perfectly said) their profit right to the edge of not pissing everyone off.

I still think we pay too much.


Mark

 

Thanks, Mark! I had only read the first page when I typed that and then I read your post after I posted and completely agreed with you. I could easily do a thesis on the economics of gas prices in the US if I ever desired to get my masters in economics.

 

You forgot, the gas distributors need to change the formulation to winter grade gasoline. Of course in the Spring they have to change it again to summer grade gasoline. They raise both times, which I have never been able to understand. Also, I have never been able to understand why there has to be 75 different formulations for every part of the country. Why not have a California grade, a formulation for largest cities, one for smaller larger cities, and then for the rest of us. Let's see, that's four grades of gasoline? Of course right now they are saying that the refineries have been operating at a lower level because we all concerved during the summer, which they didn't thing would happen. We were suppose to go back to driving like we did three years ago. Gas here is between $2.46 then .30 more for 93 octane. It's better than $4.00 gas, but still way over priced. Oh well, we're screwed no matter what.