The Price of Life

It's just gone completely overboard now, hasn't it?

I'm not going to start talking about war, but I think current gas prices are just insane. 1.61 for regular on Rt. 17??? But then I checked online for the highest gas prices in the nation. 2.60/gallon in San Diego! For regular! Can you imagine?? That actually made me feel better.

But, I think we should head to Atlanta, where those weird Georgians are only paying 1.25/gallon. Granted, it's probably mostly water, but you get what you pay for.

So...overall, the national average is $1.71. Which means that I'm getting a bargain that the rest of the U.S. isn't. (Except for those Georgians!! GRR!)

But, WHY are gas prices like this? The goverment actually posts a lot of info on this subject.

Seasonality in the demand for gasoline - When crude oil prices are stable, retail gasoline prices tend to gradually rise before and during the summer, when people drive more, and decline in the fall and winter, when people drive less. Good weather and vacations cause U.S. summer gasoline demand to average about 6% higher than during the rest of the year. If crude oil prices remain unchanged, gasoline prices would typically increase by 5-6 cents during the summer.

Changes in the cost of crude oil -Events in crude oil markets were a major factor in all but one of the five run-ups in gasoline prices between 1992 and 1997, according to the National Petroleum Council's study U.S. Petroleum Supply - Inventory Dynamics.

Crude oil prices are determined by worldwide supply and demand, with significant influence by the Organization of Petroleum Exporting Countries (OPEC). Since it was organized in 1960, OPEC has tried to keep world oil prices at its target level by setting an upper production limit on its members. OPEC has the potential to influence oil prices worldwide because its members possess such a great portion of the world's oil supply, accounting for nearly 40% of the world's production of crude oil and holding about 67% of the world's estimated crude oil reserves.

I quickly learned waaaay more than I wanted to know. But why is gas higher in NY than NJ? (I had a rough idea but never enough to explain it to someone else.) Turns out that taxes count for 28% of the price of gasoline. Higher taxes in NY State make the difference. (Although, that still doesn't explain why we get to stay in our cars and New Yorkers have to get out and pump it themselves.)

Thoughts? (And Tina would like to me add that she learned from "Battle of the Sexes" that you can put ONE tankful of unleaded gas in a leaded car and nothing will happen.)