Unexpected Jump in Gasoline Prices
Today’s “Today in Energy” report from the U.S. Energy Information Administration (EIA) shows a disturbing trend. The cost of premium gasoline has seen a big percentage price rise compared to regular.
Since January of 2003, the EIA shows a growing difference between the price of premium gasoline compared to the price of regular. It may not make a hill of beans difference to ordinary Americans now, but it sets a dangerous precedent.
Regular has increased about 8% since January 2003 while premium gasoline has increased close to 22%, nearly 3 times more.
Is that right? With fracking, the cost of all fossil petroleum products should show near inflation rate growth on all fronts in the United States. Premium prices don’t. Why?
Price vs. Technology Conclusions
Since January of 2003, when fracking technology started making a difference, the cost difference between regular gasoline compared to premium has changed.
According to the EIA:
“The difference between the U.S. average retail price for premium and regular gasoline—the premium for premium—reached 30 cents per gallon for the first time at the end of 2012“
There is nothing wrong with making a profit. Profit is the engine of progress that lowers consumer prices for all.
But price gouging is the great bugaboo.
So, the question for ordinary consumers becomes, “Is it better to raise prices on the rich to lower prices for the poor; or is it better to damn profit and raise prices on middle income Americans for the greater good of all?”