Re: More on expensive gasoline

[wlach]

apenwarr: Your bit of economic theory is interesting, but I'm still pretty certain the key driver here is supply and demand, not price optimization. See, for example, the testimony by Paul Sankey before the U.S. congress on the subject: "Gouging is an Idiotic Explanation"The facts are simple: domestic demand in the U.S. for gasoline (refined crude

Comments

Gouging *at the pump* is an idiotic explanation

[anonymous]

I'm not going to write a whole journal article about this since I don't have new to add to the discussion, just some clarification

Re: Gouging *at the pump* is an idiotic explanation

[wlach]

I think there might be a bit of confusion here between gasoline versus crude oil: they're not the same thing. Specifically, gasoline is a refined version of crude, which requires specialized facilities and equipment to produce. The price of crude oil has risen significantly over the last few years (at least partly for the reasons you mention), but not nearly enough to explain the current price of gasoline