What do you think about oil companies lowering the price of gas just before a Presidential election?
There was a small statement made by Mitt Romney about the price of gasoline being $4.00 a gallon during the second Presidential debate last evening. The price of gas in our area dropped 20 cents overnight, prompting my wife to send me a text message to buy fuel for the cars and mowers. Every four years the oil companies lower the price of gas for two to three weeks prior to the election, they have done so for the past four Presidential elections. Could oil companies be lowering prices to cause voters to forget about oil companies when going to the voting booth?
Typical, this happens every election. Not really surprised.
I've not noticed a drop in prices in my area. Nor have I ever seen I drop right before any other Presidential election...of course, this may just be my area.
Actually, retail gasoline prices are way higher than their historical difference from the wholesale futures prices. Right now, gasoline is wholesaling for about $2.80 per gallon, but selling for about $1.00 to $1.20 more on average around the U.S. or $3.80 to $4.00 per gallong. Usually, the difference is closer to 60 cents, so there is room for gasoline to fall as competition amongst suppliers drives the price closer to its normal price difference between wholesale and retail prices.
So you are saying that every four years for a few weeks before election day competition between wholesale and retail gas suppliers suddenly decreases until about a week after election day? That is a wonderful coincidence.
I didn't say anything of the sort. I said that at the moment the spread between wholesale and retail gasoline prices is unusually wide. I have never seen it so wide before, election year or not. They have room to drop quickly for whatever reason.
The gas prices have dropped three to four weeks and stayed low until the Presidential election is over. This has happened for every Presidential election since gas went over two dollars a gallon in 2003 and this is because the price gap has widened?
The spread between wholesale and retail gasoline prices is abnormally wide right now. Don't take my word for it. Look it up.
Where can I find the specific information you are citing?
Look at gasoline futures charts and compare them to retail gasoline charts. There are also some recent articles on the Internet that cover this topic. It appears to be due to short supply of gasoline due to regional blends and refiner maintenance.
Yes, they drop, and then they shoot right back up again!
It doesn't surprise me.
One big happy family in the Corporate Party (Demopublicans and Republicrats).
Their agenda is not America -- it's New World Order elite over enslaved humanity. Alas! It's Germany 80 years ago all over again, only they're running Hitler 2.0 -- the slicker, more sinister tyranny social software.
Oil prices and therefore, gasoline prices are impacted by supply and demand and by what is happening in the world, which causes the speculators to react.
So we have a presidential election coming. That means change, even if the incumbent wins. That means more emphasis on bio fuels, regardless of who wins and that probably means more environmental controls regardless of who wins.
Next the election is very close to Thanksgiving, the start of the holiday driving season, where gasoline prices always go up because of demand.
Then there are localized and seasonal aspects to consider. Gasoline prices in my City have been at the $3.50 to $3.55 on average for about a month. There is always one or two stations that are much higher and a few that are much lower. Do not assume the stations you pass on your way to work reflect average prices.
The President does not control gasoline prices. The market controls the price. The government impacts the price with state and federal taxes per gallon. Some local communities can add taxes and in some cases there are special taxes added on top of other taxes. If you are in California, you are paying higher prices because that state uses a special blend that is made in no other state, and therefore, the supply can be affected if a refinery goes down for maintenance, which they must do.
The only thing constant about gasoline prices is that they are going to constantly be changing.
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