I think it is high due to higher demand for heating fuel. Gas and heating fuel come from the SAME refineries. If a little spike in DEMAND for heating fuel occurs, then, it causes the refineries to NOT generate as much Gas, causing artificial shortages of Gasoline.
In the coming months, if the weather cooperates, I'm hoping to see a decent drop in costs.............NOTHING near the costs of fuel in 1995, when Oil was also under 35 a barrel, but DECENT.
BTW..........a quick internet search of demand in 1995 vs today shows the world is using 30% more OIL than it did then. based on some simple math, and accounting for inflation, $1.85 is NOT BAD.
Simple math would include inflation of 2% a year........a LOT less than the 4% we've been seeing.
AND lets NOT forget about TAXES...............
Current: http://www.taxadmin.org/fta/rate/motor_fl.html
1998 levels: http://www.iftach.org/taxmatrix/choose_table.asp
At 3 bucks a gallon almost 60 cents of that is ADDED TAX.
Later,
Geo




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