Gas prices...

[Jarod]

Conservatives claim that the price of oil is set by supply and demand and what the market will support.

If thats true then why would a gas tax break affect the cost of Gas? Wouldent the gas companies merely adjust the price up to meet the same price as before the tax was cut? I mean if the price is set by what the market can support???

 

[Topspin]

your joking right?

 

[uscitizen]

It pretty much would, and when the tax went back on it would soar because the oil cos would not drop back the price much.
And the increase when the tax went back on would be blamed on taxes not oil cos.


Good catch.

 

[Topspin]

the price would go down $.18 right away

 

[Jarod]

the price would go down $.18 right away

Sure, then inch up $.18 over the next three weeks or so.

 

[Antiaris Toxicaria]

Conservatives claim that the price of oil is set by supply and demand and what the market will support.

If thats true then why would a gas tax break affect the cost of Gas? Wouldent the gas companies merely adjust the price up to meet the same price as before the tax was cut? I mean if the price is set by what the market can support???

And where exactly would you get that money for the programs those taxes pay for?

 

[Topspin]

it's the most competitive real pricing business

 

[uscitizen]

And where exactly would you get that money for the programs those taxes pay for?

from the income gained by the tax cut of course. That is the way tax cuts work.

 

[Antiaris Toxicaria]

That is why tax cuts don't work.

Fixed that for you.

 

[uscitizen]

LOL, thanks

I was of course being sarcastic.

 

[Don Quixote]

Conservatives claim that the price of oil is set by supply and demand and what the market will support.

If thats true then why would a gas tax break affect the cost of Gas? Wouldent the gas companies merely adjust the price up to meet the same price as before the tax was cut? I mean if the price is set by what the market can support???

what about the downward spiral of the value of the dollar raising the cost of a barrel of oil and since oil is used to make gas, the price of gas

the gas companies do not set the price of oil, but they do set the price of oil derivatives...

 

[Diuretic]

the price would go down $.18 right away

How?

 

[ib1yysguy]

How?

He has no idea.

 

[uscitizen]

For those who do not know, Topspin says he works for a big oil company.
Just to keep things in perspective.

 

[Topspin]

Jarod stick to subway.
I worked finance in big oil for 25 yes.
The price would indeed go down immediatly.
East step along the process has razorthin margins. That's why they price it out to several decimals.

 

[Diuretic]

But how come the laws of supply and demand are supposed to work?

I can't see how they would.

 

[Topspin]

your joking right?

 

[Jarod]

Just look what happened here in Florida last year when they repealed the state gas tax for a month... Prices barely droped, and were higher at the end.

 

[Topspin]

dung, like Nike shoes you will get charged what you will pay.
That said, if a retail guy has to pay 18cents less for it lots will lower their price and the cycle starts. Oil could go up and make it a dollar higher in a month, but it would be 18 cents less than it otherwise would be.

 

[Diuretic]

your joking right?

No.