Since most companies' margins on sales are a percentage, when prices go up,
so do profits (unless volume decreases as a result of the higher price).  If
their markup is, say, 20%, then 20% of a higher price is more money.

The real problem seems to be the same kind of short-sightedness that has
caused the California electricity problems.  Demand for petroleum products
continues to grow at staggering rates, while the capacity of the supply
systems does not.  It has been predicted by some that no more refineries
will be built in the U.S. - EVER.  The existing refineries are running out
of excess capacity, and importing refined petroleum products will be more
expensive.  The reason I have heard for the lack of refinery construction is
that current environmental and safety regulations make them impractical.
Some people might argue for a relaxation of those regulations, if they are
too extreme, but most people would not, I think.  We must understand and
expect that there is a price for the choices we, as a nation, make.  Using
more and more oil will increase harm to the environment, or increase prices,
or both.

Remember the exploding demand for smaller, more fuel-efficient cars after
the fuel shortages of the late 70's?  Most people don't remember that, it
seems.  Look at the popularity of SUV's and how much larger most of them are
than the SUV's of a few years ago.  The advertisements for these vehicles
tout the size and power of their V-8 (or even V-10) engines.  Even if fuel
is cheap and plentiful , one would hope that people would want
fuel-efficient vehicles for the sake of air quality, if not resource
conservation.

-----Original Message-----
From: [log in to unmask] [mailto:[log in to unmask]]
Sent: Monday, April 23, 2001 11:27 AM
To: [log in to unmask]
Subject: Re: OT: Gasoline prices and what consumers are doing about it


X-no-Archive:yes
Well, I don't have a problem with their profits being high. But when they go
UP, something's rotten in Denmark. ... <snip>

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