Oil price does not justify big increase at the pump
Collusion on gas prices evident.
I am sure everyone in the area has noticed the very sharp increase in the price of gasoline. It seems every station has raised their prices in lock step.
I wondered why, so I took a look at the price of oil today. What? The price of oil has dropped $1.32 a barrel at the same time the price at the pump has risen 11.9 cents on average!
That's all I need to know to understand.
Oh yes, remember when the prices of fuel approached $4 a gallon and the airlines raised their rates, saying they had to keep up with the cost of aviation fuel. Guess what? In 2000, the cost of aviation fuel was 0.62 cents per gallon. It went to $3.34 in April 2012. As of January 2016, it was $1.29 per gallon.
Airlines are also using 32 percent less fuel because of fewer flights and greater efficiency. The cost of fuel today from 2015 is down 33 percent.
How much have ticket prices fallen? Certainly not 33 percent. So who is getting the hosing here?
Michael Harris
Bradenton
This story was originally published March 22, 2016 at 12:00 AM with the headline "Oil price does not justify big increase at the pump ."