Price Gouged, Yes, But for Each Gal. of Gas You are ALSO Paying .70 for Market Speculation

[DogPoundPup]

You are paying sky-high prices at the gas pump because the barons of "big oil" have bushwacked the American people. With the help of major league lobbyists and the high-ranking politicians receptive to them, oil companies are earning enormous profits through a combination of anti-competitive practices - including market manipulation - made even easier by the wave of recent oil company mergers and the government's outrageously weak regulatory oversight.

Every time you buy gas, you know you are being price-gouged, but did you know that, for every gallon of gas you buy, you are being charged an extra 70 cents - at least - that is related purely to market speculation and not a function of supply-and-demand? The oil barons not only get away with this, they use their considerable influence to prevent the passage of meaningful fuel economy legislation, further squeezing consumers by ensuring automakers will continue to build gas-guzzling cars.

It may not be a conspiracy, but it is most definitely a travesty. Tell your elected officials you refuse to be held hostage by the oil companies. Tell them if they can not do the job, you will elect someone who will. Tell them that you agree with Public Citizen's recommendations to reform America’s energy markets and to introduce and enforce the kind of fuel economy standards that will make a difference.

Take Action @ http://action.citizen.org/campaign.jsp?campaign_KEY=5146 by signing this statement or edit it to suit you.....

We are in a national energy crisis that requires immediate action as well as long-term decisions. As your constituent, I am appalled and offended that crude oil, which costs $20 a barrel to extract, is selling for $132 a barrel. The five largest oil companies made almost $600 billion in profits since 2001. The impact of skyrocketing oil prices on consumers, truckers and the airlines has been enormous and will only worsen, while energy companies are so flush with money that they are spending more on buying back their own stock at record rates than they are on finding the new clean energy sources we need.

As a supporter of Public Citizen's plan to reform America’s energy markets, I am asking you to push for the following immediate remedies:

• Increase funding for mass transit and rail transportation.

• Levy a tax on the excess profits oil companies are raking in.

• Close the Enron loophole by re-regulating energy producers to combat price fixing.

• Stop oil companies, investment banks and hedge funds from continuing their exploitation of recently deregulated energy trading markets to manipulate energy prices. That speculation is costing Americans an extra 70 cents on every gallon of gas.

In Oct. 2007, BP agreed to pay $300 million to settle allegations that it manipulated the American propane futures market, and yet the practice of energy traders speculating on information gleaned from its own affiliate companies in the energy infrastructure continues. Put an end to this form of insider trading.

I also want you to institute the following solutions over the long term:

• Substantially increase motor vehicle fuel economy standards - which are now minimal - to help conserve fuel.

• Move our nation to alternative energy sources - such as wind and solar power - by supporting their funding and development.

• End subsidies for fossil fuel and nuclear companies and redirect that $25 billion to $30 billion to households so they can afford clean alternatives like hybrid cars and can install solar panels.

• Mandate the installment of temperature equipment at gas pumps like Canada does, so consumers at least get the amount of gas for which they are paying regardless of how hot it is.

• Stop subsidizing the production of ethanol. It raises food prices and does not help global warming.

I look forward to your response and immediate action to address the people’s energy needs.
http://action.citizen.org/campaign.jsp?campaign_KEY=5146

[Initech]

1. Is gas the only commodity that charges that much based on speculation?

:shrug:

[tkmorris]

2. No it isn't

However, given that choosing NOT to use products with their origins in crude oil is difficult to impossible in most cases, allowing the free market to speculate it's price upward without the brake such choices would allow is not in our nation's best interests.

[DogPoundPup]

3. You can read about market speculation at

http://en.wikipedia.org/wiki/Commodity_markets