Fuel Prices

[Mr 5 0]

Supply and demand.

While there are a lot of factors that go into the pump price for a gallon of gas, a better-flowing supply, which we are beginning to experience, will always help hold down prices somewhat, although never as low as we would all like. However, we need to realize that a gallon of gas costs 60 cents in 1975 and, with inflation factored in, that price translates to about 2.20 per gallon, today and it's going into cars that routinely get much better gas mileage that a '75 (or older) heavyweight with a bigger displacement engine, a carb and less efficient emissions equipment.

So, while gas prices are still a little high, they are not ridiculously high and any reasonable person can see that, once you past the initial shock of seeing prices jump, temporarily, by almost a dollar-per-gallon in a week or less. That crisis is passing and gas prices will be coming back down, just as I predicted, so all the angst was for nothing.