Monday, May 21, 2007

The Price of Gas: Part I lost count

The rise in gas prices reveals the stark presence of irresponsibility on the part of Oil companies. The government, Congress must put aside fear of losing the support of big money backers and regulate the gas prices. In certain cities there are price ceilings on rent, I propose a similar regulatory system for gas. In it not necessary for the survival of nor economically prudent for the national economy in having these excessive gas prices.

"Gas prices: Worse than '81 oil shock
Gas now at highest level, even adjusted for inflation; AAA's reading of nearly $3.20 a gallon marks ninth straight record high in current dollars.

May 21 2007: 5:46 PM EDT
NEW YORK ( -- Gasoline prices have soared to levels never seen before as even the inflation-adjusted price for a gallon of unleaded topped the 1981 record spike in price that had stood for 26 years.
And higher prices could be on the way as Americans get ready to hit the road for the Memorial Day holiday and the start of the summer driving season.
Two different surveys found record high pump prices once again.
The nation's retailers say soaring gas prices are prompting U.S. consumers to cut back on their purchases and shopping trips.
While gasoline had already been in record territory in current dollars, Trilby Lundberg, publisher of the survey, said this is the first time that her survey topped her 1981 record high when adjusted for inflation.
The price of $1.35 in 1981 works out to $3.15 in current dollars, she said. The Iran-Iraq war, which started the year before, choked off oil supplies to the global market, causing that spike in prices.
The Energy Information Administration's latest pump price, when adjusted for inflation, also reached a new peak. The EIA said Monday the average price for regular unleaded gasoline soared 11.5 cents over the past week to a fresh record of $3.22 a gallon, the all-time high fuel cost reached in March 1981.
The EIA survey covers about 800 service stations nationwide while the Lundberg survey includes 7,000 stations.
The motorist group AAA does a daily survey of up to 85,000 gas stations, but that reading does not go back to the 1981 spike. Its survey has been showing a series of record high prices in current dollars since May 13, and Monday the average price for a gallon of self-serve unleaded hit $3.196, the ninth straight record high and up from Sunday's record of $3.178.
The AAA survey now shows prices up 4 percent over the course of the last week, along with an increase of 11.8 percent over the last month.
AAA warned in congressional testimony last week it believes that more record prices could be on the way. It is forecasting prices will approach $3.25 a gallon over the next 60 days.

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