Gas Prices The Big Lie

Now that the long Memorial Day Weekend in the US has arrived let’s look at current gas prices.  I recently read that with gas prices easing, more people will be on the road traveling.  Really? Prices falling?  The current average gallon of gasoline is $3.65 per gallon.  That is down approximately 15 cents from last Memorial Day and 28 cents off this years’ high average gas price.  What we don’t pay attention to is the fact that WTI Crude Oil is less than $92.00 per barrel, refinery capacity is not an issue despite what we are told, and the fact that we are a major exporter.  Going back to gas prices for a second, are we to believe that 28 cents per gallon off this years high price is going to be the difference between taking a vacation and not taking a vacation?  Let’s look at this mathematically, If you put 10 gallons of gas in your car you save $2.80 cents.  That buys a family one Gatorade.  If a family on the average vacation uses 50 gallons of gas (highly inflated number), they would save $28.00 on gas from this years’ high.  But at $3.65/gallon the family spent $182.50 just on gas.  So let’s not live in a fantasy world.  Gas prices will never again be $1.00 but the price of a gallon should certainly not be higher than $2.50.  Gas prices are manipulated by the producing countries, the petroleum companies and the commodities traders, period.  So I suppose we have to live with it, but let’s not listen to the ridiculous justifications for the high prices.  That’s all I ask.  Happy Memorial Day and thank you to all those who serve and have served this country in the armed forces.

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