Does it seem odd, that the oil companies only raise prices during the summer?

Question

then they lower it a bit to make us feel good at the end of summer.yet they are still making big profits.I dont want to here supply and demand c**p anymore.

Answer 1

Oil companies don't regulate the price of gas at the pump. Gasoline is a traded commodity, and when the demand is high like during the summer driving season, the price rises with demand. If you've noticed, gas prices have fallen somewhat in the last few weeks. America is driving less, so the price begins to slip. It'll keep coming down if people resist the temptation to go back to their old habits. Drive only when you have to; carpool when you can; use mass transit where available; and consolidate those trips you absolutely have to make.

Answer 2

I think it's because summer *and holiday* is a major travel time, people are going on vacation, going on road trips, visiting family, etc., so they know that you're going to buy the oil.  In that case, why not try to make an little more profit? It's not like the $50 million bonus they got last year was a lot.

Answer 3

And what a coincidence that summer is the time of highest demand. What is odd is how many people know so little about economics.

Answer 4

I live here in texas and we have wells all around us and we still pay high prices for gas and its not just the oil companies that is taking us for a ride its the service stations they will do price wars when they are beside each other so to me that means that they try to get a much from the consumer as possible.We need to only take care of the good old USA and not worry about those other countries.

Answer 5

No, it's not supply and demand.  The prices are being manipulated.  Even financial experts are saying that the gasoline prices are not following supply and demand fundamentals anymore.  Anything to do with energy, there is always going to be price gouging and price manipulation...because they can get away with it.  We HAVE to buy gas.  It's not like buying an iPod.

I'll give you an example.  In California, around 2000-2001, there was supposedly a "shortage" of electricity.  The price of electricity went super high, and there were rolling blackouts.  Every day, there were messages on the tv and radio, talking about the "power crisis" and telling people to conserve power.  Then when the Enron scandal came out, everything suddenly went back to normal.  No more blackouts, no more messages about the "power crisis."  Nothing.  It was like it never happened.  It turned out that Enron was deliberately shutting down power plants to create a fake energy shortage, so they could jack up the price of electricity.  There was even a tape recording of Enron executives laughing about how they were ripping off California..saying "burn baby, burn!"

The same thing is happening with the oil companies and with gasoline.  The oil companies are making record profits.  Not just revenues, but actual PROFITS.  Have you ever noticed how during the summer, there are always refineries that are shut down for "maintennance"?  They report a false shortage, and deliberately reduce refinery capacity so they can inflate the prices.  I know someone who did work with energy trading tell me that this is actually what they do.  It's a well known game.  Price fixing and manipulation.  

There is NO shortage.  And it has nothing to do with supply and demand.  They're ripping us off.  And as long as people keep making excuses for them, then they'll just keep getting way with it.

  

Answer 6

gateway has got it right with one additional angle, namely the calculation of social security cola.  It is based on a comparison of this years 3rd quarter to last years third quarter.  I think that is why the prices started to moderate in July and I predict they will continue to moderate through sep (the 3rd quarter here being July, August and Sept)

So, for the other three quarters gas could be 20 dollars a gallon, then if brought back to last year's 3rd quarter price, it would be as if, for ssi cola it never cost any ssi recipient an extra dime even though he/she paid the higher prices in the other three quarter.

Figures don't lie but liars figure as the old addage goes seems to apply.

Answer 7

just watch your heating bill this winter.

Answer 8

they can charge us 1p a litre and theyd still make amazing profit, since when did all these oil companies need profit anyway, they make a week what some people make in their life.