Good Morning!

I've got to buy gas today. Thankfully, the price has dropped by about 15 cents and is back down under $4/gallon in these parts. But was it the market, or the oil companies?

I've got a pet theory about that. Think back a while. Do you remember $3 gas? how about $2 or even $1?


I well remember a couple of price points. Within my driving memory, gas was indeed under $1 a gallon. I was not happy when it broke $1...it was 1987, and I had just bought my first car. Not long after that was the first Gulf War, and I remember gas passing through $1.50 at that time. Seems hard to believe, but remember all the gnashing of teeth and rending of garments over that?

I have my pet theory about the price of gas. Of course we know it always goes up and never comes back down...but what about the pattern? I read once that those little digital displays at the gas station aren't controlled locally; the price is set by the corporate overlords and is sent over the wires to the outlets. (on a side note, I have no idea how the independents decide what to charge for gas.)

Every time gas has gone through a so-called psychological barrier, there's been the same kind of backlash; people cut down on driving, public transportation sees a spike in ridership, and Congress postures about price-gouging and has press conferences.

But the oil companies know what they can get away with, and after the price inches back below that barrier, it's only a matter of time before the 'market' pushes it back above that point for good.

This happened last at the $3 mark....just before the economy collapsed, if I recall correctly.

But now that barrier has been broken; we paid for $4 gas at the height of the economic crisis with the same kind of ineffective whining as before. Sure, gas can be found for as 'little' as $3.75 in these parts, even going into peak driving season. Locally, at least...I'd expect the price to remain steady around that mark until the more expensive "winter" blend comes out in the fall sometime.

I wouldn't be surprised at all if we're having this discussion again next year over $4.50 gas....or more.