Price gouging not to blame | SummitDaily.com
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Price gouging not to blame

RE: Price gouging: When are we going to make them stop? (SDN Sept. 29)Price gouging is not to blame for high gasoline prices. According to the U.S. Energy Information Agency (www.eia.doe.gov) the retail price of gasoline in the last year has risen by 58 percent. During the same time period, the price of crude oil has risen by a similar amount, 58.4 percent. The price of crude oil is set by a global free market, reflecting global supply and demand. U.S. oil companies do not set the price of crude oil. While I do not dispute that there may be isolated cases of price gouging by gasoline retailers, the real problem is that the world is rapidly approaching a geologically constrained peak in crude oil production. Much has been written about the phenomenon of peak oil, and yet the mainstream media has mostly avoided the issue. As a result, Americans are woefully unaware of the real reason behind rising energy prices. The repercussions of peak oil on the global economy and living standards are severe. Americans do not have a constitutional right to cheap gasoline. The current price of gasoline in the U.S. would be considered a bargain in most other parts of the world. High prices for fuel, while being painful for the consumer, may be the only way to wake people up to the global energy crisis which is looming in our future.


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