There are many people who seem to suffer from the delusion that they have some sort of right to cheap gas. That somehow because gas plays an important if not crucial role in their lives that the price should never go up. Or at least not very much or very fast.

Any purchase of any product is a value choice. Is that half-caf low fat latte worth $3.00 or is there something of greater value I could spend that money on? It is of course absurd that a good number of people making the most noise in the media and the halls of Congress about $3.00 a gallon gasoline probably don't give a second thought to paying $3.00 for an 8 oz. cup of coffee.

People need to remember that oil companies and refineries and gas stations and coffee shops do not exist for the sake of providing them with fuel. They are in business to not only make a profit but to maximize that profit. They do this by investing their capital to produce a product that people want to buy.

Right now, a gallon of gas costs about $3.00. Consumers have but two options. Pay the price or don't. If the value of a gallon of gas is not worth the price at the pump, don't buy it. Buy half a tank instead of filling up and find ways to drive less.

If enough people do this the result will be an decrease in demand for gas. Decrease demand enough and guess what that does to the price?

It is really very simple. Ask yourself this: Is there something else that I could buy with my $3.00 that would bring more value to my life?

If the answer is yes, shut up and go spend your money on that.

If the answer is no, shut up and pump the gas.

Posted by: Stephen Macklin at 03:05 PM | No Comments | Add Comment