Gas prices are dropping to under $3 all across the country. I have yet to hear a clear reason as to why the prices are really dropping. Not long ago, we were faced with a supply issue related to hurricanes in the Gulf. Many stations were bone dry after a brief panic. Now that the economy is tanking, what is up with gas prices?
Since Bush & Co. caters to big oil, I would not be surprised if he nudged a few of his buddies to stop gouging so much. Pick a reason that makes sense for you. Explanations are endless.
Big Oil has always fallen back on the supply & demand defense when confronted with accusations of price gouging in light of record breaking profits. Many said that because high prices would reduce usage, eventually demand would drop and in turn, prices would follow. Is that what we are seeing? The cycle, according to Big Oil, will continue because when prices drop, demand will suddenly spike and drive prices up again. If supply & demand really is behind all of this, I would expect to see this trend. If this trend does not play out, I will be left scratching my head and back on the price gouging bandwagon.