Gasoline prices have risen to record highs. That is what my local TV stations tell me. The high price of gasoline is making it harder for the general public to keep their heads above water said our local radio station. The local paper said it is going up and up and it is the most expensive it has ever been. The media was saying that gas prices are at record highs for one simple, simple minded reason: They are economically illiterate! They do not take into account for inflation. That makes the numbers look bigger than the cost actually are. Not adjusting for inflation would mean that the movie Meet the Fockers out grossed Gone With the Wind. Once you account for inflation, that means gas today is eighty seven cents cheaper than it was in 1922 and eighty five cents cheaper than it was in 1982. True, after Hurricane Katrina the price did reach an average of $2.97 per gallon--but that's still lower than than the $3.12 set in March 1981. Without allowing for inflation, the media has most people so alarmed that they can't think straight. What cost more I asked three customers at a gas station "gasoline or bottled water?" the answer I got from two was "gasoline" Water at this station sells for $1.29 for a 24 ounce bottle (that is $6.88 a gallon) The next week I asked several more "What cost more, gasoline or ice cream?" all said gasoline cost more. Now my favorite ice cream is Starbucks, Classic Coffee. At this station it is $3.39 a pint, that figures to be $27.00 a gallon. Stop, think for a minute at how cheap gasoline really is. After all, it's easy to bottle water, but the cost to produce and deliver gasoline is expensive. Oil has to be sucked from the ground, sometimes deep below the ocean floor, drilling as deep as five miles. Then delivered in long pipelines or shipped in huge expensive ships, then converted into three or four different formulas and transported by trucks that cost $100,000.00 each. Then the local gas station has to spend a fortune on safty devices so you won't blow your self up. At $2.69 a gallon (about 68 cents go to taxes) Gas is Cheap! But you won't hear that from the economically illiterate media. Thank you for allowing me to vent. Maybe I should not do this while smelling the vapors of a second Martini.

It's not the Martini vapors that are getting to ya Ray... it's the olive.

My old friend you never have to apologize for your Rambolings. Your thoughts are always welcome here. Even if you do own stock in the gas company (as I know that you do).

Those were some interesting points. In that context it takes some of the sting out of spending $90 to fill up our box truck. But I think there's more to this than simply "inflation" alone. The hurricanes definitely played a part in the rising gas prices. But there's also a fair measure of good ol' American G R E E D too! Here's a recent Yahoo news article discussing the public view of the nation's largest oil company... http://news.yahoo.com/s/afp/20060531/bs_afp/uscompanyoil_060531221548




Rick Gelinas
encapman

While there is probably some greed, I prefer to call it self interest. I learned the other day that Exxon's profit on one gallon of gas is 9 cents. The federal government gets 18 cents. Exxon has to pay income tax and shareholders dividends from that profit. So the government gets paid twice. Where is the greed.

As for all the hoopla about how much the former CEO is getting, just remember, where do you start telling private business how much to pay their people. I don't want anyone telling me how much to pay myself. Just because the numbers are big does not change the basic principle. He did his job. He got rewarded.

Ray,

I don't need 28 gallons of ben n gerry's to go to work. I can drink water from the tap, which I have a well. I know that some of it is inflation, but I think we are being literally taken for a ride.



Ralph

1st off as far as adjusting for inflation thats crap....Have our cars adjusted for inflation?? do they now get 40 mpg for the big vans you and i drive??? Do the little cars get 100??? I didn't think so, inflation is fine and dandy so long as the main factors go along for it(yes i know min wage hasn't, but most companies give cost of living raises) So don't give me this crap of ADJUSTING, cuz its crap, until my vehicle gets more mpg.

As far as taxes go, yes the feds get a chunk of it of the top...guess what you don't think that road your driving on, or lights you stop at, or out here int he west the plows and salt they use come free do ya??? somethings gotta pay for it...the other chunk of tax, well that just goes to support an array of programs, and helps keep MOST of us from having to pay a heavier tax(because they tax(or try with all the loopholes) these large companies) Yes taxes suck, but as with anything nothing is free.

well theres my vent

Minimum wage has tripled since I was a youngster. Of course everything else has probably tripled too.

I remember when I used to have a "Real" Job(Printing Industry). We would normally get a 3% cost of living raise each year. If you were one of the chosen few you would get a little more than the standard 3%. Sad part was that the actual cost of living always went up more than the 3% they were giving us each year. So the longer you stayed at your job the further behind you got! Management really did'nt give a hoot, because if you were'nt willing to hang around and bust your butt for those wages they could always have another guy there the next day that was happy to get that job at that wage.

I was looking for a way out of that business as soon as I got into it. It took a while before I found a way to make a living working for myself,...thank goodness I found this cleaning thing.

Tom

Justify it all you want, EVERYBODY knows gas companies made a profit at the lower prices, they are strongarming their customers because most of our lifestyles are dependand on their product. They are charging what they want because there is no one to compete with or check them.If you doubt that, when you see alternative fuels , electric , hydrogen ect . developed and readily available, you will see the oil companies begging for business.

and if people HAD to get thier carpet cleaned every week?. If people HAD to call you every morning to buy a bottle of spotter to dump in thier car to go to work, How many carpet cleaners would "strong arm" John Q.?. Remember, They do not have a monopoply on the market, you are more than welcome to start your own oil company from scratch and rake in the big profits they are getting. Just like Sam Walton, years ago sombody stuck thier neck out to start a company, they are being rewarded for it now.

Brian

and yes, I HATE paying $3/gal for gas

Oil companies make 10% profit
how many of you could survive on that amount of profit

True that they are larger and deal in Millions of gallons. Big deal
as we use more oil they make more money that is fair

Stop whining and get to work, get more clients find ways to make more money off the same people you service.


There are cars that get 40 MPG our there, just not what many want to drive.

Our govenment waste most of the money they take in they could due just fine with a lot less.

in My state they will not suspend the gas tax for the summer even though they have doen it for years. they compain about the money they will not take in.

BUT they have a surplus again this year by the millions.

Now if the state has extra money that means they have over charged they people in the state by millions