Why is it that politicians TELL us what they intend to do, and somehow people REFUSE to believe them when they carry through with their plans?
Barack Obama: "Under my plan of a cap and trade system, electricity rates would necessarily skyrocket." (January 2008)
He has said much the same about gas prices, wishing for 'a more gradual upward adjustment of prices' than we are currently experiencing.
Oil and gas are commodities. Supply and demand are the most important factors determining the pre-tax price of both. If the world oil supply increases marginally and demand increases faster, the price will go up in a commensurate fashion. That's the world's present situation. With the vast increase in demand coming from China and India, the price for a barrel of oil has been rising. So the oil companies are paying more for a barrel of oil. Demand is outpacing supply, at the same time that OPEC is holding on to crude oil reserves.
There are two factors that affect the gasoline supply. Municipalities across America demand different blends starting in late spring and early summer to control smog and air pollution levels. Some refineries have to shut down and retool every year to produce these "boutique blends" of fuel. This interruption alone results in supply shortages and is made even WORSE by the fact that environmentalists have led the charge in blocking the construction of new refineries since the 1970's! This is a national security issue folks.
The Obama administration is currently pushing policies that will dramatically increase the price of gas. Over a year ago Obama slapped a moratorium on all new deep water drilling, and then bottled up all applications for new drilling in the bureaucracy of the Interior Department. Not only did this adversely effect supply, but that threat of less supply of crude has resulted in speculation that also drives the price up, and makes us even MORE dependant on foreign oil sources. He has been found to be in contempt of court by Federal Judge Martin Feldman for illegally blocking new drilling in the Gulf.
The Heritage Foundation summarizes it for us:
Add to these supply interruptions the rampant inflation caused by runaway federal spending and printing of money, and you have the proverbial "perfect storm" for rising gas prices, and it was done ON PURPOSE!
Competition is also a significant factor in gas prices and the one we consumers understand the best. That final 10 cents in the price of a gallon is the result of one station owner trying his best to beat the guy down the street. They don't make much on gas, the store uses it's gas to get you to buy beer, silly lighters, and Doritos! Competition keeps local prices as low as they can possibly be.
So when politicians like Obama lie to you about the big, mean, greedy oil companies “hosing” the consumer, just remember that the price of gas is determined by supply and demand, state and federal taxes, inflation, and local competition. Remember who those politicians are, and... SEND THE LIARS PACKING COME NEXT ELECTION FOR INSULTING YOUR INTELLIGENCE!!