From 97-00 oil companies had competition. End of story.

As far as the price, like I said before, price isn't the issue. It's the unwarranted fluctuation. Oil prices do not directly affect the cost of refining. If oil goes up $5 a barrel from $25 to $30, the increase you pay at the pump should be less than the 20% increase because the price of refining should remain constant, and therefore defuse part of the increase in price. It's not. In most cases it's more like a 40% increase. If oil prices go up, you see it at the pump the same day. If they go down, you see it in 1 week to 3 months. Yes, there were refinery's closed last year as prices went through the roof here in the midwest. There was no reason given for 2 of the shutdowns.

The only thing I'm trying to convey is the idea of monopolies and price fixing. Microsoft could charge way more for it's products, but it hasn't. If Windows was a fee based software, and the fee's went up 50% and hung out there for a while until an investigation was mentioned or people started screaming, and then dropped back down would you accuse Microsoft of "price gouging?" Obviously the answer is yes, and the American people would DEMAND Microsoft be dismantled, and sued for being a monopoly etc etc. They got dragged into court for no legitimate reason. The two largest oil companies, and two of the largest computer companies are approved for mergers in the shadows of the Microsoft saga. Now the oil companies have flexed their muscles showing crazy profit margins, yet there are still people out there that would say it's all a left wing story.

The bottom line is NO company should be able to set the price of their product. You can't get together with your competitors and raise prices. It's illegal. To me, there is too much fluctuation in gas prices compared with the price of crude.

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Granted that oil companies set prices (their legal right individually - not their right to do so collectively) and the pump price fluctuations are annoying but if they were all guilty of collective price-fixing they would be prosecuted by politicians more than eager to gain points from voters. Who likes oil companies? No one. Oil companies have been demonized by politicians for decades. Everyone assumes they are thieves, right? Even so, they are never prosecuted after exhaustive politically-inspired investigations, over and over again, every time the gas price jumps noticably. Gotta be a reason. Maybe because they aren't 'fixing' prices?

Your trust in government intervention in the free market is touching but misguided.

The gas price panic of 1973 was precipitated by then-President Nixon's decision to set gas prices, just as you would like to see now. He did. Congress thought this was nifty idea, just as you do and they went along. Result: oil companies saw profits go away, investors screamed, they stopped buying crude (and refining it) and gas became hard to get - at any price. Viola! No gas, panic in the streets. The price controls were lifted. Unfortunately, a knee-jerk reaction from any business when you make it unprofitable to operate by government fiat.

There are few 'big' gas companies because it takes billions to be in the gas and oil business, it's a very unstable business, everybody hates you every time gas prices rise a few cents and no one is volunteering to fund another Mobil Oil, so companies are looking to merge to survive.

There is obviously a lot of misunderstanding about oil company operations and government interference in the market and it's ramifications but I'm getting tired of defending oil companies and I doubt this subject interests many beside a handful of members so I'm bailing out of the discussion and offering the 'last word' to you or whomever wants it.

I don't like it when gas prices go up and I sure didn't enjoy last summer, however, Mr 5 0 is making a lot of sense.

You think I trust the government? LOL!!!

No way! But I do trust they like to keep their jobs and angry tax payers make it difficult. I would rather the government quit approving mergers, which is what I believe caused this problem in the first place.

Geez.....What happened in 1986 when everyone in the oil industry lost there jobs........Why didnt the oil companies just "price gouge" at will and bring the industry back up:rolleyes:

From 97-00 they had competition what the hell does that mean.
I asume you mean that since some companies merged the competition is over LMAO!!!

On my customer Database here at work we work for over 200 oil companies in the US alone.

The oil industry has taken an @sskicken for the past decade........and is just now getting back to "normal' its still not a prosperus time.

Competition is alive and well in the oil industry I would be hard presed to name a more competitive industry.

Later,

Yah, i agree that prices of gas should go up. But when gas prices shoot for the moon every summer is total bs. Im sick of their dumb excuses. I can afford it still, so im going go bite the bullet and buy citgo, because its the cheapest gas in town.

They are thinking constantly on cars that can run on a different fuel, like the hydrogen car..You think they won't charge whatever they want for that too? Hah.. Those damn grubby morons would probably charge more for it, to "help pay for the price from switching from gas to hydrogen.."

Sorry, just watched that on TV a couple hours ago, had to mention it. I probably sound like a complete idiot anyway, but im only venting.

PS. some gas companies have to raise their prices if they want to stay in business, its the major ones that control this industry.