Deseret News | Gouging? Or market forces

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Gouging? Or market forces

Yearly tradition? | 5:43 a.m. Aug. 21, 2008

In my opinion this yearly tradition that you speak of has only been in effect the last four years that President Bush has been in office.

I ask prior to the Bush administratin when was the price of gasoline in Utah higher than the national average or higher than say Las Vegas?

Is the editorial trying to make escuses for the excess profit taking?

Sam | 6:57 a.m. Aug. 21, 2008

So now it's President Bush's fault Utah gas is expensive. Market forces son... prices would go down if we had more supply. Drill, open new refineries prices would go down.

Mahonri | 7:04 a.m. Aug. 21, 2008

Since the time of Brigham Young Utah has had the practice of charging higher prices to those passing through. Now the gas is higher for everyone, not just the 'gentiles' as they pass through. Live with it. If you don't like it, run your own gas station and you will quickly find the exorbitant profits are mist and wishful thinking. Most gas stations don't make much on gasoline. The refineries and parent companies make the money. Why not build a private refinery and lower your prices so you can be a help to all who fuel with your lower priced fuel? No one is stopping you.

Comments continue below

Market forces | 7:54 a.m. Aug. 21, 2008

Indeed market forces are at play and the other way to combat high prices is to lower demand. Move close to where you work, drive an energy efficient car, or try riding a bike once in a while.

Lower demand = lower prices

Mike | 8:07 a.m. Aug. 21, 2008

The prices can only remain high if the retailers have an understanding, wink, wink, that they will not compete by lowering prices. If one breaks the agreement and lowers to national pricing the others must follow, competition spreads. So, the retailers control the price through watching competitors and so long as no one lowers more than a few pennies they can continue this gouging indefinitely, so long as they continue their political contributions to keep the politicians off their backs.

Dave | 8:21 a.m. Aug. 21, 2008

Because of a ever expanding base reducing personal use of oil will have little efect on the price. The only answere is increasing production.

Cameron | 8:31 a.m. Aug. 21, 2008

Mahonri -

"Why not build a private refinery and lower your prices so you can be a help to all who fuel with your lower priced fuel? No one is stopping you."

Yeah, try to get THAT one past the Sierra Club.

Market Forces -

US demand for oil has been flat since 2003, and has actually dropped 3% so far in 2008. Yet prices have skyrocketed in that time.

We cannot conserve our way to energy independence.

To Market Forces at 7:54 | 8:38 a.m. Aug. 21, 2008

People who believe that market forces are the only influences on gas prices are naive. It is much more likely that the oil companies get together and fix prices to keep them high.

Anonymous | 8:54 a.m. Aug. 21, 2008

Two comments, one questioning, one supporting:

First, where was the call for an investigation earlier in the spring when Utah prices were averaging LOWER than the rest of the nation?

Second, as oil prices went up about $100 per barrel over the past two or three years, prices at the pump increased by at least $2.00, a ratio of 2 pennies at the pump for every dollar/barrel. Now that the price per barrel has dropped about $30, shouldn't we see a 60 cent decrease at the pump? That would mean pump prices of about $3.59/gallon.

Instereo | 9:03 a.m. Aug. 21, 2008

It looks to me that the oil companies don't need to get together to fix high prices in Utah. They have the Deseret News giving them all the justification or should I say excuses they need.

anon | 9:20 a.m. Aug. 21, 2008

Thanks DN for being one more Utah shill for those who are illegally colluding. Warms my heart to know all of Utah's watchdogs sleep.

Oh Please | 9:50 a.m. Aug. 21, 2008

Price fixing and collusion are as traditional in the oil business as drill bits and cracking towers. Goes clear back to the original Rockefeller.

anon | 10:14 a.m. Aug. 21, 2008

To Oh Please,

Price fixing and collusion have historically been tempered by watchdogs, but not here. We ought to at least be getting 87 octane fuel instead trash 85 octane. When you compare 87 octane fuel, our prices are even more outrageous. Maybe our enviro-friendly governor can muster the courage to go hat-in-hand to ask for minimum 87 octane fuel so we can at least get higher quality fuel for our top dollar price.

Chad | 10:19 a.m. Aug. 21, 2008

anon, oh please, instereo, to market forces, you need to get out of your single passenger SUV or jacked up gigantic truck that guzzles gas at a rate of 4 miles per gallon and actually do something about it rather than complain.

Oh yeah, and it is REAL realistic to claim vast conspiracies among all the companies that provide oil and gas. Give me a break. Get your head out of your hollywood fiction and see the world for what it is, and maybe think about a smaller car and fewer boats, PWCs, 4-wheelers and single-occupant SUVs to see if you can save yourself some money and everyone some gas.

anon | 10:42 a.m. Aug. 21, 2008

It doesn't need to be a vast conspiracy. Just a few local chain owners checking up on each other, making sure they don't lower prices so they don't have to compete.

liberal Larry | 11:39 a.m. Aug. 21, 2008

We have no one to blame but ourselves. We gambled on cheap oil, by living in the burbs, driving SUV's, and building McManions. The only way to cut prices is to show a little gumption, and reduce demand for oil/energy.

more whining | 2:12 p.m. Aug. 21, 2008

Gouging?
So now what's so terrible about making a 3,000% percent profit?
Capitalism is the American way of life.
Them that have - gets more. So?
Just more whining from those commie liberals.

boo hoo | 3:08 p.m. Aug. 21, 2008

Cry me a river oil junkies. If you can't afford the dope kick the habit. Millions in this country live just fine without driving cars.

Monopoly | 3:20 p.m. Aug. 21, 2008

Price fixing occurs regularly. The oil companies act monopolistic and should be regulated like utility companies.

Non-market | 5:41 p.m. Aug. 21, 2008

There are several conditions missing for the petroleum fuel industry to qualify as a "free market."

Large variety of suppliers
All buyers and sellers have complete knowledge of all
pertinent information to make good decisions
All participants are capable of making choices in
their best interest

Clearly this is a system that does not conform to the "free market" model. It is a cartel system capable of being rigged by the suppliers. Those that make the profits are the winners. Buyers of the goods are the losers. End of story.

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