Subject: RE: Wow. Gasoline prices are dropping like a bad date. kmill23 - 2008-11-24 7:25 PM Marvarnett - 2008-11-24 10:08 AM It's $1.79 here in Atlanta. I love the fact that it's dropping like a rock. The reason gas is going down is simple supply and demand. The demand is down, so the supply is up. Prices drop. I am sure that the supply will be decreased and the price will settle out. There HAS to be more to it than "simple supply and demand." Just saying. I don't think there does have to be more than that. The taxes on gas haven't changed in that time. And demand is in part determined by the speculators who drove up the price and are reportedly less active now. The problem is that neither the supply nor the demand sides are simple equations. Supply is determined by how the pumped crude gets processed (gas for cars, heating oils, etc) as well as the actual amount of crude pulled from the ground and transported from place A to place B. Demand is not just the people burning it in cars and homes, but the speculators and industries that use petroleum based products. With the economy generally tanking, for example, there is less demand for making the plastic products we all know and love, meaning less demand for petroleum by those manufacturers. I think that grand conspiracy theories tend to falter under their own weight. Gas prices at the pump always go up in the summer and down in the winter. Does not matter if it is a major election year or not. |