Gas price inflation is driving (pardon the pun) us crazy. Some thoughts: (1) gas prices are up 50% to 60% as of this writing. How can a 4% decrease in global oil supply–caused by the Ukraine-Russia war–raise prices up to 15 times the expectation? We suspect price gouging and so does the Federal Government. (2) Have you noticed how the media are playing up the cost? A recent TV consumer interviewee said “In the past I paid about $100/month for gas; now I’m paying up to $250/month.” (She was driving a $70,000 car.) Do the math. Is this a hype job? You be the judge. (3) With all the griping about gas price hikes we have noticed how few drivers try to save gas by driving with lowered windows in reasonably comfortable temperatures. You’d think all the price pain would have suggested conserving gas—but apparently not. We’re guessing it isn’t hurting pocketbooks all that much. (4) Airline ticket prices escalated immediately after pump prices rose. But airlines have advance fuel contracted price guarantees that should have carried out at least 6 months from the beginning of the price hikes. Why did the airlines need to increase their price immediately? Could it have had something to do with the summer vacation travel traffic growth? (5) And–to focus on the issue–have you seen any effort by any media to downplay the temporary nature of the increase? On the contrary, TV and print media shout their disgust and try to fix blame on anyone and everyone. After all, they want to come back again and see how bad it is tomorrow. Hype-hype-hype!!!
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