Senate to Look at Gas Prices

Discussion in '2005 Archive' started by TexasSky, Aug 19, 2005.

  1. TexasSky

    TexasSky
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    If I read this article right, and did my math correctly. WOW.

    It said that every 1 cent rise in gasoline equals $1.39 BILLION extra at the pump by Americans in a year.

    It also said gasoline is about 68 cents higher per gallon this year than it was last year.

    That means there is $94.52 billion less going into the general economy of this nation if I did my math right.

    WOW.


    http://www.cnn.com/2005/POLITICS/08/19/senate.gasprices.reut/index.html
     
  2. billwald

    billwald
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    There are two sides to every balance sheet.
     
  3. KenH

    KenH
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    From the article:

    "The September 8 hearing will focus on global oil demand, refinery capacity constraints and the impact of futures market speculation on energy prices, Domenici said in a statement."

    "Speculation". BINGO!

    Also from the article:

    'Clearly, we need to have the very best advice and counsel on what actions can be taken to help lower the cost of gasoline," said New Mexico Sen. Jeff Bingaman, the panel's senior Democrat.'

    This would be a great start:

    www.setamericafree.org/blueprint.pdf
     
  4. Johnv

    Johnv
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    I'm still all in favor of letting the rules of supply and demand decide the price of gasoline.
     
  5. TexasSky

    TexasSky
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    Well,

    I agree with you to a point Ken. It is just speculation, but certainly there is some truth to it.

    If the farmer up the road pays an extra $30.00 to fill his truck up with gas before going to market, he's going to charge the wholesaler at least some of that additional cost rather than take the full hit himself. The wholesaler, rather than take the full hit, will charge the retailer. The retailer, rather than take the full hit, will charge you and me.

    If I only pick up $4.00 of his extra $30, and $2 of the newspaper's extra, and $5 of the rancher's extra, and $1 of the importer's, and $2 of the trucker's, eventually, it becomes a lot out of my pocket.

    Besides, the reality has already proven that.
    I used to be able to fill my car for $22. Now, I pay $37.35 to fill it. Milk was $1.89 last year, not I'm paying from $3 to $3.29 a gallon. Bread went from .89 a loaf to over $1.29 a loaf. Chicken is now costing what steak used to cost, and I need a bank loan to buy a roast.
     
  6. KenH

    KenH
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    What I am referring to, TS, is those who buy and sell on the Nymex simply to make a quick buck, not to supply a refinery; those folks who, every time a Saudi sheik sneezes, run to the Nymex and drive up the price of oil.
     
  7. KenH

    KenH
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    This matter also involves our national security. That's why I think the Set America Free plan deserves great attention.
     
  8. elijah_lives

    elijah_lives
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    I wish I could pass on my costs to the wholesaler; farmers don't have that ability. We take what the market pays. And, wow, oil prices have sure affected the farmer!
     

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