Posted by MoparNorm on Wednesday, September 20, 2006 at 9:38AM :
In Reply to: Re: No, ... posted by apb in NY on Wednesday, September 20, 2006 at 9:23AM :
"They" didn't artificially raise the price, the market did. As per my explaination in the first post, there is high demand for diesel and the government artificially created the diesel shortage by dictating the percentage of gasoline to be produced after Katrina, instead of letting the demands of the market produce the fuel that was needed.
As long as people pay the higher price, the oil retailers will keep charging high prices. Truckers, shippers, power plants, airlines, etc. do not have much choice, there is a set, scheduled demand for their services, they can't just stop commerce, or stop producing electricity, these companies have to continue in business and pay the price. They do conserve and elective driving by those who don't have to drive can lower the cost by lowering demand, which increases supply, that is what is happening now with gasoline, and to a lesser extent with diesel.
MN
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