Higher Gasoline Prices...Why Were You Expecting Anything Else?
News reports this morning said that the price per gallon for regular gasoline had risen 6 cents in the past two weeks.
I like low prices on things I buy as much as anyone, but here's the most basic question no one ever seems to ask when discussing energy prices: If consumers keep paying higher prices for gasoline, why should the oil companies do anything other than raise them?
Prices will stop rising when consumers refuse to pay them. That's hard when you've moved to the burbs, have to drive to work every day, and don't have mass transit alternatives. It's also hard when few acceptable alternative fuels exist. But until consumers seriously start changing their buying habits, prices should not be expected to do anything but at least stay at current levels.
If you were an oil company executive who had to show quarterly profits, and you knew that at some point there will be an alternative to oil, (and if you were only going to be in your job for a few years), wouldn't you be raising prices now while you had the chance?