Pelosi less than Honest about the Price of Gas

RMNIXON · 05-17-2007, 07:29 PM

From George F Will:

WASHINGTON -- Democrats, seething at the injustice of gasoline prices, have sprung to the aid of embattled motorists. So resolute are Democrats about defending the downtrodden, they are undeterred by the fact that motorists, not acting like people trodden upon, are driving more than ever. Gasoline consumption has increased 2.14 percent during the last year.

That probably is explained by the inconvenient (to the Democrats' narrative) truth that Speaker Nancy Pelosi was characteristically overwrought when she said that Democrats intend to do this and that because the price of gasoline recently ``set a record'' at $3.07 a gallon. In real (inflation-adjusted) rather than nominal dollars, $3.07 is less than gasoline cost in 1981.....

Pelosi announced herself ``particularly concerned'' that the highest price of gasoline recently was in her San Francisco district -- $3.49. So she endorses H.R. 1252 to protect consumers from ``price gouging,'' defined, not altogether helpfully, by a blizzard of adjectives and adverbs. Gouging occurs when gasoline prices are ``unconscionably'' excessive, or sellers raise prices ``unreasonably'' by taking ``unfair'' advantage of ``unusual'' market conditions, or when the price charged represents a ``gross'' disparity from the price of crude oil, or when the amount charged ``grossly'' exceeds the price at which gasoline was obtainable in the same area. The bill does not explain how a gouger can gouge when his product is obtainable cheaper nearby. Actually, Pelosi's constituents are being gouged by people like Pelosi
-- by government. While oil companies make about 13 cents on a gallon of gasoline, the federal government makes 18.4 cents (the federal tax) and California's various governments make 40.2 cents (the nation's third-highest gasoline tax). Pelosi's San Francisco collects a local sales tax of 8.5 percent -- higher than the state's average for local sales taxes.

Townhall.com::Energy independence::By George Will

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And Will does not even mention the simple fact that miles per gallon were much worse in 1981!

So when are we going to wave our fists over the high taxation at the pump? Even Sheperd Smith on Fox seemed perplexed today when it was predicted that people will buy more gas this Memorial Day weekend than last year. As long as the economy is good and inflation is not driving us nuts we seem to be able to take it.

DosEquis · 05-18-2007, 11:30 AM

Part of the problem is the way futures works. Iran farts and oil goes up $5 bucks even though supply remains the same. Something has to change with that to create some stability. Perhaps when Iran farts there is a cap on what they can raise the price by. Instead of going up $5 when they break wind, maybe go up $2. Then if they do accidentally shit their pants raise it $7.

Taxes are beyond high. Though these taxes are what maintain the roads and I would prefer they tax gasoline, almost like a form of consumption tax, instead of taxing something else to get the revenue. They can probably find some pork to remove and reduce those taxes per gallon.

Stylerod · 05-18-2007, 02:17 PM

I just paid $1.50 for 20oz of water. I think $3.10 a GALLON is pretty reasonable.

6SpeedTA95 · 05-18-2007, 02:18 PM

The biggest problem right now isn't oil prices its refining capacity.

Pelosi neglected to mention that california shut down three refineries one in the BAY AREA for "excessive pollution" the other two for maintenance required by the STATE of california. Couple that with a refinery fire in Texas and in Oklahoma along with rising demand and you have the recipe for abnormally high gas prices.

I think if California wants to have stricter restrictions on their refineries thats fine but then THEY need to pay the price not the rest of the country. Cali would have had a gasoline shortfall but instead they ship in gasoline from other states. The result means we all feel the pinch for California's laws.

Another problem is when refineries have an issue they're required to shut down. The EPA comes in they all conduct inspections (which takes huges amounts of time) then they bring the refineries back on one step at a time. The explosion in Oklahoma was on some Diesel tanks, it had nothing to do with gasoline refining, but the EPA mandates they shut everything in and stop processing oil. The result? Longer than needed stoppages.

6SpeedTA95 · 05-18-2007, 02:19 PM

Originally Posted by Stylerod

I just paid $1.50 for 20oz of water. I think $3.10 a GALLON is pretty reasonable.

In the grand scheme of things it is and we better get used to it over the long run. I feel current supplies and demand would dictate 50 to 55/bbl oil. However, easily recoverable oil is quickly dwindling and while there's plenty of oil it is becoming more expensive to get out of the ground. My guess is in another decade inflation adjusted, prices for oil will be in the 75 to 85/bbl range.

Diamond Cross · 05-18-2007, 03:35 PM

I'm paying $3.59 here. However, congress has run investigations into the allegations of price gouging before and have found nothing.

RMNIXON · 05-18-2007, 05:49 PM

Originally Posted by DosEquis

Part of the problem is the way futures works. Iran farts and oil goes up $5 bucks even though supply remains the same. Something has to change with that to create some stability. Perhaps when Iran farts there is a cap on what they can raise the price by. Instead of going up $5 when they break wind, maybe go up $2. Then if they do accidentally shit their pants raise it $7.

Taxes are beyond high. Though these taxes are what maintain the roads and I would prefer they tax gasoline, almost like a form of consumption tax, instead of taxing something else to get the revenue. They can probably find some pork to remove and reduce those taxes per gallon.

I don't know about other States? But they wont use the gas tax just for roads. They divert it to all kinds of pork!

illavbill · 05-18-2007, 05:51 PM

I just filled up lastnight and it was $3.85 /gallon

Linzyhop · 05-18-2007, 05:54 PM

in boston it's about $2.89. that's a big difference... damn.

SpicyMcVoodoo · 05-18-2007, 05:55 PM

Originally Posted by DosEquis

Part of the problem is the way futures works. Iran farts and oil goes up $5 bucks even though supply remains the same. Something has to change with that to create some stability.

Wouldn't speculators create stability if the situation was really like that? If it was obvious that stupid little things temporarily shot gas prices up, then speculators could make easy profits by selling the contracts short, right?

I don't think the oil futures market is so illiquid that meaningless news can cause so much volatility. If gas prices are jumping around, it's got to be for good cause.