How can prices climb so much, seemingly overnight, when the gasoline in the tank beneath the station was bought by the retailer a day or two before and was probably refined from crude oil weeks or even months ago?
James Brock, professor of economics at Miami University, blames a smaller pool of gasoline providers who have bigger pricing power than ever before.
What nonsense. Why should a gas station price gasoline based on the price when they bought the gas? When you sell your house, do you base your selling price on the price you paid for the house? Or do you base it on current market prices?
Sheesh. The good news is that the article does provide some anecdotal evidence of people conserving on gasoline.
For Discussion. Would it be good public policy at this point to use price controls to reduce the price of gasoline?