Thursday, September 01, 2005

Gasoline Prices

Tuesday morning $2.53.
Wednesday morning $2.89.
Thursday morning $3.06.
Thursday afternoon $3.27.

Gouging? I don't see how a product can vary in price that quickly. But I'm probably not really understanding how pricing of gasoline works. Most products are produced at a price and then sold for a defined profit. Is this how gasoline is priced? Doesn't look like it to me. I'm just confused. Worse, I'd conjecture that refineries staying making gasoline will effect heating oil prices.

This article discusses price caps for gasoline. Personally, I don't think that is needed. Though I would expect that the states and federal government would keep a close eye on those who may try to gouge.

My brilliant landlord, box of rocks that he is, recently had a chance to lock in the home heating oil price at $2.19. He decided to wait. Now I don't buy heating oil, but I do know that heating oil prices start to go up in September, not down. Now he's said he may have to raise rent. My forehead is getting seriously calloused from banging it on the desk.


Granted said...

Stop banging your head. The good/bad news is, that most of those "lock in the rate" contracts don't hold water. They limit the rate of growth of the price, not actually limit the price. Fine print is an amazing thing. So even he had five or six brain cells firing in sequence, your rent would be going up.
Now you can resume banging your head.

geekwife said...

See if you can make him a deal... tell him he can heat your apartment to a reasonable 68, instead of the 80 he usually heats it to, and skip the rent increase.