I read the article by Eric Fetters, “What’s pushing gas to $3 and up,” in Friday’s Herald. As I understand it, the current price of gas is determined by:
1. Switching from winter fuel mixtures to summer mixtures.
2. Supply and demand.
3. The industry “shorting” the market.
I presume the winter/summer fuel is switched every year, so why does it cost us extra this year?
Why is it that this year and at this time, supply and demand is especially high? I think the answer to this question is in No. 3 above.
Could it be that the industry is intentionally shorting the market to create a false supply and demand situation? Wouldn’t it be illegal if this was happening in the stock market?
Shorting the market, I guess, is another way of saying gouging, isn’t it? With record profits by the oil companies, the gouging factor makes the most sense to me as to why the price of gas has gone up so dramatically.
It is too bad the public can’t come up with a way to stop this robbery.
Gerry Gibson
Sultan
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