[Vision2020] Gas prices...........

[Kenneth Marcy]

On Thursday 07 August 2008 10:26, Tom Ivie wrote:
> Thank you Ken. That would explain why the local prices are not conforming 
to the supply and demand curve.  We keep hearing that the state fuel 
revenues are down because Idahoans are not buying as much gas. This 
indicates a downturn in demand which, in most industries and businesses, 
would cause the price to decrease.
> 
> So why is it that as the prices were going up ours was less than the 
national average, but when they are going down, we stay well above it? Is 
that a consequence of the oligopoly?

There are lags on the upside because the channel wants to maintain an 
orderly market, meaning both availability of product and manageable 
volatility in the price levels. There are lags on the downside because as 
long as the price can be maintained higher, margins are greater.

> Has anyone thought about e-mailing the state Attorney General about the 
apparent gouging?

I suppose so, but then the thought of the Idaho AG taking on the gasoline 
industry yields a short, contemplative pause, then a decision to move on.


Ken