Expensive Gasoline an Issue for Every Household

April 17, 2012
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These prices for gasoline were displayed at the Lynnway Shell Station Monday morning.

Like many of our readers, my wife an I each have an automobile which we use everyday to get to work and to do our thing with the kids.

We’re not big drivers. Last year, my wife put 15,000 miles on our Volvo station wagon. I put 14,000 miles on my Toyota Camry.

With gasoline at nearly $4.00 a gallon, we spent a small boatload of money to drive around on our errands in our automobiles, neither of which are gas guzzlers but by the same token, they don’t get 25-30 miles to the gallon.

With repairs and gasoline bought, the total we spent for both our automobiles last year was about $6500.

Also, my wife and I drive junkers. Our Volvo station wagon is a 2001 item that at this point has 178,000 miles on it and needs just about everything.

The Toyota is a 1991, is in solid shape but has about 150,000 miles on it and because it is a V-6, the mileage isn’t that great, probably in the 16-18 miles per gallon territory.

Bottom line, everyone in this city that is married with kids and with two working people in the family both driving individual vehicles – this means Mom and Dad working – or Dad working and Mom at home is struggling- now that expenses for these necessities have gone through the roof.

The higher price for gasoline despite no supply problems or disruptions in product flow is teaching us that the supply and demand model is hardly a factor in today’s upside down market place.

Generally, the price for gasoline remains low during the winter months when people drive less and increase in the spring and summer months when they drive more.

This past winter, prices rose even higher though people weren’t driving more. Prices continued to rise throughout the winter and then soared as we neared spring with no increase in consumption.

Can we imagine what might happen this summer?

Yes we can. And it is certain to be ugly.

Bottom line, again, all of us should be outraged at the rip-off we are all having to endure because gasoline (oil ) is soaring when the price should be steady.

We have been told by smart people who claim to know that speculation has very little to do with the price for gasoline (oil).

Well, if the supply and demand law has nothing to do with the rise in price for gasoline, and speculation has nothing to do with it either, then what is causing the spike?

Obviously, it is speculation that is causing the spike and little else.

Speculators on Wall Street on the commodities market trade futures everyday and everyday they make millions bidding up the price and then bidding it down.

Then we pay for the speculation.

Again, the price for gasoline has very little to do with supply and demand anymore.

It has to do with being ripped off.

As consumers, we are being ripped off – and no one in government is willing to take a stand to help us out.

Call it the modern world. Call it whatever you want.

We’re being ripped off – and it hurts families, the nation’s economy and it causes the future to look a bit dreary.

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