Let’s all issue a great sigh of relief. Gas prices have started falling. I’d even bet the oil industry is expecting a thank you for this, but don’t give it.
Isn’t it incredibly convenient that prices have begun to fall since the industry has been scrutinized? What’s even more incredible is that the reduction is during the peak driving period of the summer.
Prices have fallen at many stations 40 to 50 cents a gallon. How can such a massive industry be so unstable with its pricing? When the oil industry tried to explain this sudden cheaper supply of oil, it was almost as credible as its explanation of why prices were rising (not).
Let’s not deny that we do live in a free-enterprise system, but any industry that has so much influence over our everyday lives should be hugely accountable and incredibly regulated. There is no competition in this industry which, in my opinion, translates into them being a monopoly. U.S. monopolies are illegal in this country–ask Microsoft.
It has been reported that the oil industry spent hundreds of thousands of dollars lobbying in Springfield to have the state tax suspended. The reason was to offer a false impression to the consumer that prices were dropping. The oil industry loved this, as it didn’t affect its huge profit margins a bit. If hundreds of thousands were spent in Springfield, how much was spent in Washington?
The oil industry has never been short of supply unless it wanted to be. Remember when OPEC announces a decrease in production, prices jump immediately; yet when production is increased, it takes weeks or even months for a price reduction.
