Its easy to blame the oil companies, and they no doubt engage in their share of opportunistic market manipulation where they can. As does McDonalds, Walmart, milk producers, GM, Toyota, ToysR'Us, and that 10 year old robber baron down the street selling kool-aid for a buck a cup in July (Gad, how I hate paying that little extortionist!) But other price influences are being let off the hook too easily, ie. Here in Michigan, a significant portion of the 1.69 price we're paying for gas right now is a 55 cent tax on every gallon of gas. Somehow, I suspect the tax burden isn't any lighter in places like California where gas is well over $2.00 a gallon. But virtually nothing is said about these taxes when news stories bemoan the price of gas.
And don't underestimate the expense to the oil industries in complying with the maze of decades of environmental and regulatory laws. Sure we feel better knowing that the parts per zillion of petroleum molecules in our air/ground/water is kept to an infinitesimal minimum by triple walled tanks and delivery systems composed of high tech polymers, air scrubbers, and special runoff systems, all supervised from oil well to gas pump by expensive environmental specialists who's very job depends on eliminating the possibility that the EPA is going to fine the company this year. And sure, we think its great when a new additive that increases fuel efficiency 3% in the summer is found, and legislators hurry into law a regulation requiring that the refineries start buying the additive and design a system of incorporating it into their manufacturing system in spring and out in fall. And in addition to the warm fuzzy all this gets us, we just love knowing that the companies making us pay so much for gas are having to pay for all of this out of their own pocket. So we never question our politicians when they propose more regulations, for the children of course, and viciously attack those who would dare question the cost benefit of new regulations as tools of the greedy oil industry. All that makes us feel good.
Just one question... who exactly is paying the money that the oil companies are using to pay for all this stuff we demand?