I’m getting mad at gas prices. But it is lowest it has been in a long time, so why am I upset?
When gas hit highs in 2008
We saw a gallon of gas hit record highs in the summer of 2008. Oh, you should have heard all the old “coffee drinkers” complaining about how terrible things were when gas was tapping $4.00 a gallon, they would go on and on about how the “big oil companies” were gouging us. I honestly did not sweat it and was glad to pay it. “Compared to a gallon overseas” and “inflation adjusted” were excuses that I used to justify a $60.00 tank of good ‘ol 87. I believed capitalism was working, good old “supply and demand” dictating prices as the gears of our economy turned. No conspiracy theories or “evil oil company” thoughts ran through my head.
I didn’t like high prices, but didn’t complain either
Then prices started to drop below $3.50! I got excited when prices dropped to $2.99. WOW! This is great for all of us.
Then in November I saw this
That is when I got mad. What the heck is going on? Why are gas prices 60% cheaper now than five months ago? I could understand if it were more than a year later, but what has really changed in 150+ days? Don’t get me wrong, $1.49 a gallon is awesome, but what happened? I had to go back to my original rationalizations to try and calm myself down:
- “Compared to a gallon overseas”: I’m seeing reports that Rome and Germany are down as well, around 1.17 -1.29 Euros a liter. That’s cheap too.
- My theory of “Inflation adjusted prices” has gone out the window.The market may be down 60%, but realistically the economy is not 60% slower (currently unemployment is 7% and ask my wife about searching for a good parking spot at the store the other day – BUSY). As I drove by the casino I noticed it was PACKED – just where we all go when money is tight.
- Supply and Demand: Did we double our supply of gasoline? Are we drilling in Alaska now? Or have we all reduced our driving habits to less than half what it was this summer? Yeah, I haven’t either.
So I am getting upset because the rational explanations are no longer rational. Were we getting duped? Was I really that blind to “greedy big oil” or is there something else I have not considered here. Please leave me comments so I can stop being so mad about gas prices.