re: Price of gasoline

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It hasn't around here too much lately except preceding Memorial Day, which is always the case before a big holiday it seems.

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This is the time when refineries are switching from winter gas to summer gas. Tanks have to be emptied before being filled with new gas. Supply is lower; therefore, prices rise. Simple supply and demand.

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The gasoline market baffles me somewhat. Usually when there is some kind of monumental catastrophe the price of gas always rises for whatever reasons.

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You do realize that this oil spill in the gulf has zero affect on the current supply of oil to refineries. This rig was not producing yet, and for one rig to go down would still not put a dent on oil supply production.

It's still simple supply and demand on why gas prices rise when a hurricane hits. Refineries shut down before a hurricane makes landfall. After the hurricane passes, it takes a day or so before the refinery starts to come back online, then it takes another day or so to get everything back online if there is enough power to supply the refinery. After Gustav, the refinery I worked at was down for a week because Entergy couldn't supply us the power we needed to come back online. All that time, gas is being supplied by what's in inventory. Since the refineries aren't running to resupply the inventories, lower supply and very high demand cause prices to skyrocket. Still simple supply and demand.

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Seeing as to how electric rates are regulated, to a point, would it be bad for us consumers if the gas industry was regulated?

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Seriously? I've barely been at this apt I live in over the last month or so. Only the AC runs during the time, and I'm paying over $100 for my electric bill.

You want gas prices to go down? Have all 50 states agree on 3 octane levels.

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Only the AC runs during the time, and I'm paying over $100 for my electric bill.

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And if your electric company wasn't being regulated it would be a helluva lot higher than $100 I'm sure.

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You want gas prices to go down?

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My main concern is the price going way up. The oil companies will make their profits of margins regardless what happens out in the gulf. I've been around way long enough to realize that the oil companies will not start going backwards with their profits.

When you have a monopoly on the fuel business you pretty much get to call the shots on just how much money you want to make. Wouldn't you agree?

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Oil company margins are some of the lowest of any business. Want to complain about gouging then take a look at Wal-mart

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Yep. Just check the financial performance of anyone that is non-integrated (refining only) and see how they have been doing for the past year. Valero and Murphy are two locally to start with.

By the way, Murphy announced last week that they were divesting their three refineries. Good luck finding a buyer. Chalmette, Superior, WS and Wales.