If you were looking, you might have noticed that gasoline prices have again risen this week. Normally this time of year the price goes down, so what is going on?
Per AAA, “In its report for the week ending on October 11, new data from the Energy Information Administration (EIA) revealed that total domestic gasoline stocks fell by 2.6 million bbl to 226.2 million bbl. When compared to last year at this time, total domestic stocks are 8 million bbl lower this year. Although demand took a slight step back from 9.46 million b/d to 9.35 million b/d, according to EIA’s latest report, it is still 172,000 b/d higher than last year’s rate at this time. Until supplies increase or demand decreases, motorists are likely to see moderate increases in pump prices. Since Monday, the national average for unleaded regular gasoline has increased by two cents to $2.65.”
So what is causing this? Well how about the drone attack on the Saudi Arabian production facility. Which did cause a lowering of oil production. Or is it that we here in the USA are buying gas hogging vehicles like SUVs and Pickup Trucks?
The Big Three American automakers have shifted from producing fuel efficient cars to bigger vehicles, such as SUVs where they have a higher profit margin than when making compact or sub-compact cars. Look at what Ford did, if you want a car from them get a Focus or Mustang while they still are being made. Otherwise forget about getting a car from Ford. They will be only selling Crossovers and SUVs in an effort to make more money. Other car makers are also following Ford’s example, but not so drastically.
If the American public continues to fall for the garbage that SUVs and their ilk are the future, then gas prices will continue an upward rise. What we the automobile driving public have to do is to stop buying these gas hogs and demand more efficient vehicles or we will end up having to pay more for gas.
Don’t let the Big Three brainwash you as they did in the early to mid 1960s into buying bigger vehicles. The only ones that will profit from doing that is the automakers, not you!
That is my opinion- Jumpin Jersey Mike