Gas Prices

Driving to the gym, I pass several gas stations. For the first time in six months, gas prices are threatening to drop below $4 per gallon. Of course, neighboring states are already below that mark, but Pennsylvania requires the second highest state gas tax to maintain our roads in shitty condition. Cross the border from Maryland, New Jersey, or New York and say good-bye to your wheel alignment.

Three thoughts come to mind:

1. Humans are as easily conditioned as Pavlov’s dogs. Big Oil gives us $5 gas and we bitch and moan for a while. We even cut down our driving a bit, but Exxon is still fat and happy. Record profits result. Big Oil then drops the price to $4 and we salivate over how great it is. We drive more. Exxon remains fat and happy, selling more gas at a slightly lower price. Now, we are used to $4 gas forever, or at least until the next excuse that Big Oil uses (Russia invades Ukraine / Arab oil embargo) to raise prices again.

2. Why do gas prices end in 9/10 cent per gallon? I guess that $3.99.9 looks better than $4.00, but it amounts to all of nine cents on every ten gallons sold. Big deal. Actually, the Federal Gas Tax is the culprit. That pesky 9/10 cent has been around since the 1920s.

3. Why are gas prices falling? The Russian Oil Boycott remains in force. When Big Oil reported its massive profits a couple of weeks ago, Democrats threatened an Excess Profits Surtax. “You can’t weasel your way out of this one, Exxon. You claim big profits to keep your shareholders happy and we tax you at 25% of that number. No accounting or offshore banking tricks allowed.” Magically, we get $4 gas.

By Ed Dufton