The pain at the pump seems real enough. Nothing gets neighbors and co-workers nodding in agreement these days like a complaint about high gas prices.
But even as the price of regular unleaded sits at a record average of $3.33 a gallon in the Seattle/Bellevue/Everett metro area, consumer complaints have yet to translate into action. We’re slurping up that pricey fuel as quickly as ever.
Many consumers believe they’re getting fleeced by fat-cat oil companies, who are indeed enjoying record profits. Industry insiders respond that those profits help balance prior losses and allow further investment in supply, and that a host of factors influence gas prices, anyway – from political instability in oil-producing nations to capacity shortages in U.S. refineries.
In our state, the attorney general and governor have launched an investigation to see whether price-fixing is going on. That’s a reasonable step even if it finds no wrongdoing, as has been the case in previous probes. It’s best to be sure.
But as long as gasoline demand continues to grow – so far this year, it’s up by 2.2 percent in the U.S. – there’s less pressure for prices to fall.
We do love our independence, and our cars help us express it. Americans’ driving habits have never reflected much in the way of restraint, even during the first oil crisis of the 1970s. Then, demand for more fuel-efficient cars was followed by an increase in miles driven.
More recently, after Hurricane Katrina put a dent in domestic production in 2005, demand softened as prices rose. It didn’t last. Once prices started to moderate, drivers went back to their old habits.
Globally, the outlook for lower oil prices isn’t bright. Markets are understandably jittery over tensions in the Middle East and Nigeria, and the U.S. government projects world consumption will keep growing this year and next – with half of the growth coming from the U.S. and China. When demand increases and supply doesn’t keep up, prices rise.
Individual consumers can’t control global factors. Even acting en masse, the effect U.S. consumers can have on gas prices is limited. Each individual can, however, have a significant effect on his or her gas bill by employing smart strategies like combining errands, joining a carpool or using public transit. Or trading in that gas hog for something less thirsty.
Griping about gas prices can burn off some frustration. Taking action can save you money. Where is your energy better spent?
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