Comments on: Is there really justification for raising fuel prices because a refinery had a fire?

By: gomanyes562

gomanyes562 — Sun, 22 Feb 2009 01:06:59 +0000

The government doesn't set the price of gas. It is set by demand and supply. If one refinery goes offline, that is a huge drop in supply, meaning gas will get more expensive. The government's reserve is for emergencies like wars and embargoes, not to tap into every time the price goes up.
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By: East Coaster

East Coaster — Sun, 22 Feb 2009 00:44:59 +0000

They could raise prices because the sky was clear.

You need to understand something, they "own" the product they can charge you what they want.

If you decide your not going to sit still for it I suggest you start drilling and refining.
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By: gregg k

gregg k — Sun, 22 Feb 2009 00:15:59 +0000

Do you want smooth roads to travel to and fro on?
Do you want a nice smooth parking lot to be in front of the grocerie store or Wal-Mart where there is an unlimited supply of petroleum products?
Understand that everything made or formed, all household gadjets, appliances, even the siding on you house, the coating of the telephone polls, etc., etc. All of the paint you see, the colors, even the tires on your car, are petroleum based.
Every little knick-knack, plaything, and computer shell has a petroleum base.
But, no it does not justify the raising of fuel prices.
I think what justifies the raising of the prices is in the attempt to get people away from driving so much because they can't afford it.
When there is a refinery fire and the refinery goes off-line, that raises the supply from the major source and lowers the demand in that area. Prices have to reflect that.
When you have less demand for the product, the revenue drops and then you have to store the excess which costs for the extra space needed.
The overhead still has to be paid. The price of running the refinery is one. And if that refinery was at a major junction and it closed down, the extra transportation cost to shift the resources to a facility that operates comes into play because they are not going to stop the supply.
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By: RodeoCowboyy

RodeoCowboyy — Sat, 21 Feb 2009 23:29:59 +0000

Well I see this question has brought out the typical conspiracy theorists and ax-grinders. But as a few have pointed out, it is just a supply/demand issue.
1. There is a huge demand for refined oil.
2. There is a limited supply of refined oil.
3. So, whenever that supply is decreased, then the cost of refined oil will rise.
It is a natural process and it works the same in all industries. People focus more on oil because we all consume it and we all feel the crunch of higher prices.
But the free market system is a beautiful thing and it will correct itself. Higher prices will cause other refineries to increase production to take advantage of the opportunity for profit. Soon, the dip in supply will be remedied and prices will adjust back down.
It is best for the government to stay out of price controls as much as possible. Those types of measures may help in the short term but history shows that they always hurt us much more in the long run.
It would be far better for you to cut back on your oil consumption. That would help your pocketbook and the environment as well.
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By: ur 2funny

ur 2funny — Sat, 21 Feb 2009 22:50:59 +0000

Its the law of supply and demand that the "environmentalists" and the oil companies are using to strangle us with high gas prices. Then ya add in the fed tax about 75 cents a gallon and there ya go! We cant drill explore or build refineries or nuke plants because the greenies have their hands around the throats of our politicians! Place the blame where it belongs!
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By: Carpe diem

Carpe diem — Sat, 21 Feb 2009 22:12:59 +0000

The government is owned by big oil, drug companies, and tobacco....They wouldn't endanger losing there next job, after leaving office so they will continue to save you from steroids instead.
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By: Pink

Pink — Sat, 21 Feb 2009 22:06:59 +0000

The refinery got damaged (i assume), so it is harder for them to make/get fuel, and so thyey raise the prices, to cover their troubles.

Besides, no matter what the cost of fuel, people are always gonna buy it, unless they wanna walk places…!!
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By: Spam

Spam — Sat, 21 Feb 2009 21:16:59 +0000

Oil companies do not want to spend money on new refineries, the ones we have now are old and we are in dire need for new ones. There is no profit in building new ones so we are at an impasse
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By: Jeff the DVD producer

Jeff the DVD producer — Sat, 21 Feb 2009 20:51:59 +0000

Because the Republicans are in charge and they have their hands in your wallet everyway they can. All the while duping the brainless about the "evil Democrat taxes."
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By: Jeremy H

Jeremy H — Sat, 21 Feb 2009 20:39:59 +0000

Yes there is justification.

Our refineries are running at full capacity to meet demand and environmentalists will not allow oil companies to build more refineries.

So if a refinery has problems, the supply of gasoline goes down. Therefore because production is not ahead of demand, prices go up.
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