AlPl

Tue, 29 Apr 2008 11:15:17 -0800

The supply of gas is essentially fixed so price of gas naturally finds itself at the point where it gets sold as fast as it can be produced. If you cut the taxes on it the price will not change and the oil companies will enjoy the nice extra margin you've just given them. It'd be a tax giveaway to big industry, not the consumer.

csharp7

Tue, 29 Apr 2008 10:59:12 -0800

The oil companies do *not* set the price of oil. Talking about their profits in a post about price is misleading. They make a lot of money because they invest a LOT of money. There are lots and lots of factors that go into determining the price including: a weakening U.S. dollar, geopolitical uncertainties around the globe, growing worldwide demand - especially from developing countries, operating reliability concerns, an increasing flow of funds into the commodity markets. What's causing the marked increase right now is the US$ freefall and the refusal of OPEC to increase production. Long-term, the best thing for the US consumer is to reduce demand. McCain's proposed moratorium on the 18 cent tax would do exactly the opposite (if it works at all - most likely the price at the pump will go up to compensate and no one will notice a difference.) The ONLY way to save money on gas long-term is to buy less of it. End of story.

LAist: Gas is High, Why?

AlPl

csharp7