Monday, October 20, 2008

Frosty


We had our first serious frost last night. This morning everything was covered in a thin layer of ice crystals. It was very pretty, but if there was some way to get the same effect without the cold that would be good.


So here's a question for you. Oil prices are now around $70 a barrel. That's about half what they were at their peak price a while back. And yet gas is still over $3 a gallon, which is about 3/4 of what the highest price was. How is that the price of gas can increase quickly enough to insure that companies producing it don't lose money, and yet when the costs of the materials go down the price doesn't come down anywhere near as quickly (if it ever does). Could it be that the oil companies are simply leaving it high to bring in even more profit because they can.

6 comments:

gaz said...

Could it be that the oil companies are simply leaving it high to bring in even more profit because they can

dya'think?!

nice frosty shots m8.

Scott-tay said...

It's funny how more populous parts of the state such as NoVa. and Charlottesville are hovering around $3 per gallon, and yet gas was $2.49 yesterday in Goshen, VA. Maybe I'll have to drive 90 miles to fill up my truck...

wtfree3 said...

$2.50 is pretty standard down here in Richmond. (It hit under $2.35 over the weekend at the BJ's fuel pumps.) I think you should blame your oil companies less and your local fuel station owners more - they're not paying that much more for their gas than folks elsewhere in the state. They're just keeping their margins up.

Actually, I've got a different theory (which I'm working on a blog entry for) right now, as I cannot believe that the 25% reduction that I've seen in gas prices in less than 3 weeks is rational pricing behavior. Not sure when I'll finish the post - I've got some research to do still to at least give a modicum of thought to it.

Willy C said...

We Need To Drill Now!!

gaz said...

we are finding several suppliers selling petrol at less than a pound now. although diesel is still about £1.10.

The Dogfather said...

But gaz.... isn't that a pound per LITER? I don't want to do the math to go to $/gal at *THAT* rate.