Sunday, June 27, 2004
Gas Price Roller Coaster
Have you ever wondered the real reason why the gas prices go up and down so fast? OK, I know that it's supposed to be in relation to the price of crude oil. At least that's what they say. But why is it only gas prices?
Why not bread or bacon? If you live in the country, you're familiar with the farm market report. This is a report that is given over the radio, usually at way too early in the morning. It gives the prices of farm related goods. But when the give the current price of pork or wheat, they're not talking about what you buy at the local Krogers. No, this is the price of the basic stuff; the price of a pound of pig or a bushel of wheat. You know, the price of crude foodstuffs.
Now why, if the price of pork, wheat and corn varies with the market, doesn't the price of bacon, bread and Corn Chex also vary? I mean if the moving picture show on a gas station price sign changes several times a day, why doesn't bread or milk? I can understand price changes reflecting basic ingredients, but why only gas stations? A trucking company raises their price 5% and they have to apologize about it. But when a gas company raises their prices 20% they just say take it or leave it.
2fers: Exxon and Agricultural Marketing Service
