Mar 7, 2005
Gasoline prices have shot up again. In the past, gasoline companies have said they have to raise prices because demand is high and supply is low. Supply and demand. That's what they say.
But as the Wall Street Journal reported, supply is high right now. Inventories of gasoline are above the five-year range for this time of year.
So why are gas prices going up when supply is also up? Because, as an analyst said, "We haven't hit a high enough price to cause behavior to change."
Put in everyday language, that means, the companies will charge as much as they can for as long as they can.
Control over the oil companies is the only thing that is in short "supply."