Gas Price Blues, Again!

A recent item on the CBC Sunday Morning show and an article I saw in Kelowna's newspaper both raise the issue (again) that consumers are being gouged by the big oil companies. I'm getting sooooo tired of these stories every time gas prices go up.

Sure, I like paying less for gas and I will always go where gas is cheapest, or the retailer gives me a discount of some sort. I've been know to carry gas with me so I can bypass places where prices are higher. That being said, here's my real rant:

Why does everyone seem to think that gas HAS to be cheap? Why are there these continuing stories that try to insist there is (must be?) a direct link between crude prices and other costs plus markup, and the price of gasoline? We have NO right to cheap gas. Retailers and oil companies are free to charge whatever the market will accept, just as all other retail stores selling other things do. (What's the real cost of producing a CD or DVD?). I don't know why oil companies even try to justify what they charge (pick your fable - not enough refineries, Hurricane Katrina, suicide bombers, fear of a recession, fears of inflation, whatever). The real reason is that demand remains high. High demand, especially when there is a somewhat restricted supply, results in high prices. Simple as that. It's called the Law of Supply and Demand.

If people want to see gas prices drop, they need to reduce the demand. Drive smaller cars (and trucks), drive less, drive more slowly, use public transit, use your bike. However, I don't see ANY of that happening. None at all, not in any significant way, at least.

If people don't like the price of gas, then they should do what they'd do for anything else - DON'T BUY IT.