Originally Posted by proprone
the truest form of supply/demand DOES exist with gas. when gas prices double, we still buy it, some of us buy less. At this point it can be argued that they are controlling the supply, but these are market measures, not price gouging measures. besides, like i've said a bunch of times. INVEST IN OIL COMPANIES, then when they make money = you make money.
I agree with you on the supply/demand point in principle, but I can't see how they're actually controlling the supply by allowing the price to fluctuate so rapidly and by such a large margin (up to 10% daily in some cases!).
Here's an interesting graph I found while trying to find out exactly how pump prices are determined:
It's from a somewhat old article, but here's the link (it's a pretty quick read):http://www.direct.ca/trinity/gasprices2.html