>>> There's no reason that gas should be like 150% higher than it was in 1999.
In 1965, gasoline was 27.9/gallon. My dad's fast food joint charged $0.10 for a Coke. Today, a Coke is $1.50, or 15x the 1965 pricing. Gas is $2.20, or 8x the 1965 pricing.
Why are you not after Coca Cola? My dad's walk-in, sit down restuarant sold an 8 ounce filet mignon for $0.95. Today, you can't touch a filet of this quality for under $18 where I live. Are you after the beef industry?
The oil companies are simply responding to increased oil pricing. This is complicated, but maybe your PhD candidate friend can help you out. If oil is at $30/bbl and goes up to $50/bbl, gasoline at the pump increases accordingly. But oil company gross profit percentages stay the same, meaning total gross margin increases.
That's okay, because it is market driven. If the oil companies were making too much money, we would have new oil companies turning up every day, building new refineries and delivering to their local gas stations. But they aren't.
Markets. Supply and demand. Complicated, I know. But you can get it if you put your liberal, communist dogma aside and realize that capitalism is a good thing. |
