low gas prices

[notes1]

 i would guess most everyone is enjoying the low gas prices we are paying at the pump. the national average has fallen to below two dollars a gallon. keep in mind, that price includes state and federal taxes that average about fifty cents a gallon. the price we pay also includes refining, distribution and a mark up from the gas stations. the actual cost of the product is probably around $1 a gallon. we all have a little more money in our pocket.  why the drop? pretty simple, more supply than demand. when prices were high, there is a motivation to find more oil, innovation and creativity step in. slower economic growth in the emerging markets has reduced some demand, but oil consumption is still growing. it just has not kept pace with technology that was used to find more supply.  this is the free market at it's best. this would not happen if the industry was under the control of the government, as some have advocated. remember all the noise that oil companies were artificially keeping gas prices high. one of the big reasons the stock maket is struggling is due to dramatically lower profits from those same oil companies. nobody, including me, feels sorry for them.    with these lower prices for crude, fracking operations are being shut down, oil rigs are being taken off line and OPEC countries are hurting. in other words, supply will slow and eventually prices will rise. but, they know where the oil is and if prices get high enough to justify the cost, they will reopen those wells. sorry for the long ramble, just thought it was important to point out how well free markets work.   

[Tedlark]

notes, may I add that the mark up that gas stations add is very small compared to the taxes. The mark up is usually around .02 a gallon, or less. Gas stations and convenience stores make their money on the sales of products inside the store or through their back room (repair shop) if they have one.

[notes1]

notes, may I add that the mark up that gas stations add is very small compared to the taxes. The mark up is usually around .02 a gallon, or less. Gas stations and convenience stores make their money on the sales of products inside the store or through their back room (repair shop) if they have one.
 ted, agree with the point you are making, that the gas stations are the lowest markup in the actual price chain. not sure you are accurate at only 2 cents, but it is certainly less than a dime a gallon, depending on location. i thought my post was too long winded to get more specific. b/t/w, i neglected to note the great day you had at the casino. why the long hiatus?

[Carcounter]

The low gas prices have already started a discussion for a higher gas tax here in NJ. As a Transportation engineer, I would be all in favor of this if the funds were to be used exclusively for transportation projects. We desperately need new Amtrak/NJ Transit tunnels into NYC and other road /mass transit improvements. But we tried this once before and a good deal of the money was diverted to other areas as politicians, primarily Dems here in NJ took care of their own special interests. The Dems again are leading the charge, but have a good amount of Repub support apparently. Ironically, the people hurt most are low income people as this is a tax everyone pays, regardless of income.

[DaBurglar]

 i would guess most everyone is enjoying the low gas prices we are paying at the pump. the national average has fallen to below two dollars a gallon. keep in mind, that price includes state and federal taxes that average about fifty cents a gallon. the price we pay also includes refining, distribution and a mark up from the gas stations. the actual cost of the product is probably around $1 a gallon. we all have a little more money in our pocket.  why the drop? pretty simple, more supply than demand. when prices were high, there is a motivation to find more oil, innovation and creativity step in. slower economic growth in the emerging markets has reduced some demand, but oil consumption is still growing. it just has not kept pace with technology that was used to find more supply.  this is the free market at it's best. this would not happen if the industry was under the control of the government, as some have advocated. remember all the noise that oil companies were artificially keeping gas prices high. one of the big reasons the stock market is struggling is due to dramatically lower profits from those same oil companies. nobody, including me, feels sorry for them.    with these lower prices for crude, fracking operations are being shut down, oil rigs are being taken off line and OPEC countries are hurting. in other words, supply will slow and eventually prices will rise. but, they know where the oil is and if prices get high enough to justify the cost, they will reopen those wells. sorry for the long ramble, just thought it was important to point out how well free markets work.   This was not a long winded post.....for crying out loud, give yourself (and others here like me) a break, if you have something you want to say, say it, and who cares if it takes 5 words , 500 or 5,000.....if something is too long for an individual to read, that individual can just simply choose NOT TO READ IT, whereas the next individual may enjoy reading it (or he/she/it has the capacity and ability to read quickly and grasp it quickly, something that sadly most people lack.....too bad.)     I've never seen abject laziness and lack of attention given such weight and awareness as it seems to get here on this website!This was a well written and reasoned post.....and I agree with more of it than I disagree with it......Free markets generally DO work, provided of course that they truly ARE FREE, and NOT rigged, or tilted in favor of one group or class over another, and not giving inherent advantages to a small clique while not giving the same advantages to others, etc etc.   THEN it becomes an "NON-FREE" MARKET.Gasoline, being a commodity, does indeed respond and follow fairly closely the principles and conventions associated with a truly FREE MARKET (most commodities do, as the law of supply and demand is straightforward when dealing with commodities.)   One problem though, which you really do not make any effort to address and yet it is an undeniable feature of gasoline (and all fossil fuels) is that there is a COST(s) to society/the earth/the environment from procuring, producing and using GASOLINE.   Obviously, pollution exists......the evidence that the environment has been harmed by the burning of fossil fuels the last century is undeniable......what is up for debate is how urgent this problem is and what (and when) should be done about it......Also up for debate is the long term impact of fracking on (or in) certain areas;  we will not know for a few more years whether or not the process truly harms the environment or to what extent (although obviously it is definitely not GOOD for the environment.)And just because there is a apparent GLUT of oil (from which gasoline derives) NOW does not negate or deny the fact that there is a FINITE amount of the stuff on the planet, and that somewhere in the future, mankind/society will need to develop REALISTIC and achievable alternatives for energy.Obviously, things like oil spills and the risks associated with accidents that result from having so many oil rigs, tankers, refineries, etc so close to (and among) populated areas is something society chooses to live with, but we will never know the long term costs or impacts of things like the Gulf oil Spill of 2009, or things like the Exxon Valdez.....I will freely admit that the ability and capacity of the earth to heal and replenish itself is truly amazing and evidence (in my eyes) of God's intelligence and handiwork, but of course that does not mean we should be cavalier or careless when it comes to the environment......also, things like oil spills on the ocean (anywhere) do not impact me directly so its easy for me to shrug my shoulders and say "oh well...."  (except when the price of shrimp briefly jumped when they could not shut the Gulf Oil Spill off in 2009)        I am not sure how the free market helps (or prevents) stuff like that.....can anyone here honestly say that if....IF there were no governmental authority like the US EPA or Department of the Interior (among others) to impose real consequences on companies who damage or harm the earth, that ALL oil companies EVERYWHERE would be doing their very best to prevent accidents and avoid any & all unnecessary pollution or harm to the environment?   I kinda doubt it, since those things cost real money, and in a FREE market (as taught in most westernized capitalist societies) COSTS are always supposed to be minimized and government interference/influence SHUNNED/AVOIDED/DISCOURAGED.....I agree that government rules, regs, interference etc tends to be a real inefficient and costly aspect of  many businesses and industries, but I would also argue that in many cases the potential COST of not having said Government rules/regs  etc is HUGE, bordering on the catastrophic.     Human Nature is (as history has shown time after time after time) incapable of ensuring fairness and decency and justice will prevail in just about any endeavor you want to imagine....including (and especially) FREE MARKETS.

[notes1]

cc, i believe NJ has one of the lowest gas taxes in the nation. you have hit on a subject that is extremely frustrating. spending money that was designated for one purpose on something that is completely unrelated, sometimes to attract votes. both parties do this and is a reason why folks like me do not trust the government or it's representatives. i believe that much of the money designed to improve AC, was spent elsewhere. because this has been going on forever and there does not seem to be any the voters can do, is why many are for smaller government and term limits.  

[notes1]

never advocated for the removal of all government. i just want less of it. i believe it would be a mistake to believe that all government programs and actions are in place to do good. some are put in place for purely political reasons, to get votes from a particular group or a payoff to a specific lobbying effort.  some actions/laws may have good intentions, but are not well thought out. everyone wants to help children, especially the disadvantaged. to do so, money/benefits are provided to a parent. the less household income there is, the more kids there are, the thinking goes, the more money they need. people quickly figure this out, they know how the system works. the end result, fewer marriages because a two parent house will likely have more income. have more kids, get more money. thus the rise in single parent households.  so, a program that may (?) have had good intentions, encourages actions that in the long run create dependency, people are stuck in a lifetime of relying on the government. and, of course, this makes for a reliable voter base for those who keep them dependent and opposed to anyone who might take away any of the freebees.

[JIMDUECE`SWILD]

   https://en.wikipedia.org/wiki/Fuel_taxe ... ted_States

[JIMDUECE`SWILD]

   I live in Pennsylvania. Whenever I go to AC I fill up.

[Carcounter]

I know NJ has one of the lowest gas taxes in the Country. I don't have a problem raising the tax to fund transportation projects. I just find it odd that the Dem politicians here are pushing such a regressive tax that hurts poor people the most.