As gasoline prices go up dramatically at the pump, everyone is considering how to absorb the extra cost of driving.
With gasoline consumption down to the 1989 level, it looks like gasoline prices should be going down. According to Don Good from the Good Oil Company in Winamac, the speculators are holding the prices in the higher price range. There’s something else coming soon that will impact prices, too.
“Unfortunately at this time of the year, we’re getting ready to go into turnarounds where they shut the refineries down to create summer-grade gasoline and that automatically causes a shortage,” said Good. “So, to be this high going into turnaround causes concern.”
Don tell us where he sees the price of regular gasoline going before it levels off.
“I happened to have lunch recently with some people from Marathon and BP and the conversations were strikingly similar. As it is right now, there’s about a one in four chance that it will go over $4.00, if things just continue like it is. If something happens in the Middle East, like with Iran, then they’re saying all bets are off and we could be seeing that $5.00 mark. It depends on how drastic it gets. All eyes are on Iran.”
$4.00 would be easier to absorb than $5.00 a gallon, but that doesn’t curtail the frustration of seeing the traders holding the American public hostage so they can line their own pockets.
“By creating this concern, it drives those prices up. They don’t lose either way. They create a concern that drives the prices up. If things settle down in Iran and settle their positions, they make a bunch of money. If something happens in Iran, they make even more money. This is really kind of unpredictable other than the fact there’s going to be a lot of money made by hedge funds and we’re all going to pay the price.”