Post 625: supply and demand

Those who support laissezfaire capitalism probably don’t realize that’s what’s behind the price of energy, a market driven by the forces of supply and demand, essentially unregulated, though heavily taxed.

The dramatic change in the cost of a gallon of gasoline in my area (Western Nebraska-South Dakota Black Hills) between last July, when I actually made some trips out of town, to December, when I pretty much limited my trips to around town, can be seen in this table:

gas

Days before the per gallon cost of gasoline dropped to the low in the orange section above, I actually thought I was making out like a bandit paying 30¢ a gallon more, or, rounded, $2.30 a gallon.

So dramatic was the change in those few days that I had to go around the block to verify I actually saw gasoline priced at slightly less than $2.00 a gallon for regular unleaded, a price so low I can’t recall when I last pay that little. Then, driving across town, I noticed three independent stations were charging even less than that by  5¢ a gallon!

I rarely drive more than 3000 miles a year (4828 km), so the cost of gasoline is a minor consideration for me. I refill the tank every month to six weeks, and pay whatever the market demands. In high months like July, I am grateful I don’t have a truck with two tanks to fill.

Though I drive a full-sized car, it actually gets 32 mpg on the highway, and a bit more than 23 mpg in combined driving. My first car, a 1970 VW Beetle, got pretty much the same mpg!

What are you paying for gasoline these days? For those who blamed high energy costs on President Obama, I hope you now give him 100% of the credit for the low costs, though only very ignorant people think he has a damn thing to do with either. It’s all about laissezfaire capitalism, supply and demand driven economics.

 

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6 thoughts on “Post 625: supply and demand

    • It seems like that was where the price was here in the early part of November. We usually have higher prices than the surrounding area, but pretty much what the national average is. I think the really low prices here might be related to a major new station opening in town that isn’t part of the local co-op mini chain, which sells the gasoline that’s typically highest in town. There may be a mini gas war going on.

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    • The town 58 miles north of here has gas selling as low as $1.70/gallon, per the lady who runs the military museum who was just there. Something is very strange about the gasoline situation here right now. We almost never have best prices in he land, and usually are higher. I guess that North Dakota sludge helps us out. Or something. I’m not sure of our supply sources.

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  1. I am paying $2.59 a gallon whites really cheap of there. I drive a Kai Soul and it gets between 27 and 390 miles to the gallon.
    Plus we got a nice shock, our electric bill has been reduced to $128 a month from $170. We watch how we use electricity and paid over the monthly amt. we were budgeted last year so, so we will pay much less for the next year.
    We use the budget plan where we pay the same ant for 12 months as it is easier to budget.
    You and the boys have a blessed Christmas.

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