What Would the Price of Gas Be if It Was Strictly Based on Supply and Demand?
Saturday, November 28th, 2009 at
7:17 am
Bronco 12 asked:
…and you took the politics, commodity trading and speculation out of it?
…and you took the politics, commodity trading and speculation out of it?
Filed under: Commodity Trading
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i assuming about 3 bux
According to many experts 20-50% lower.
Very interesting question. I studied economics in college and it doesn’t follow the traditional supply and demand and noticed that a few years ago. I thought it was so interesting when the hurricane Katrina hasn’t even hit land and they were already increasing the price due to lack of supply. In the US i would think it would be around $3.25 per gallon
Probably like $2.50, like in Mexico. Or $2.00 if bush hadn’t sabotages or money
0 Cents a gallon
$1.50 a gallon.
I remember thinking to myself in 2001: “I refuse to pay more than $1.50/gallon,” and I would drive to the next intersection to pay $1.49.
I honestly think that if were strictly supply and demand as you say, it should be around $1.85-$2.05. Just my thought.
I also think your question is interesting. I would guess somewhere in the $2.50 – $3.00 range. Just a quick side note. In 1992, my wife and I were stationed at Ft. Hood in Texas and on vacation in Florida. We stopped in Atlanta to fill up because we found a deal on gas, $0.89 per gallon. We were complaining because all the other stations were 8 – 10 cents per gallon higher. If we only knew then……..
I’d say $2.00 since China is keeping the demand high.
Eighty five cents a gallon.
There is no way to tell this.
We would have to remove all environmentalists blocking immediate drilling. Oil companies would have to be able to drill immediately where they find it.
I would guess that a third of the price is the weak dollar. Include the costs of not enough refineries, more blends than states, etc.
I would say under $2 a gallon.
This assumes all current taxes are in place.
i honestly don’t know.
if that was the way it was, america would have been more oil efficient developed along time ago, NO opec, who knows?
Companies and foreign countries can drill and refine oil (itself a NONrenewable, -once it’s gone it’s gone- material) as they please, so, in effect, they control the price regardless because it is their manpower and money that gets it out of the ground. If there were valid competition against oil based gas for cars, it would be a different answer I could give you. No competition, no choice, companies rule. Therefore, whatever price they can get from consumers is what they shall get.
About a dollar a gallon because it would be a declining industry and we’d already be well on our way to implementing cheaper and more efficient technologies.
And hat’s cheeaper than a dollar a gallon, not the current price. The technology is there. IF we can get the special interests and their political pawns in the GOP out of the way and have a real free market.
Example: how much do you suppose it costs for the electricity to charge an electric car with a range of 200 miles (equivalent to 5-15 gallons of gasoline?
Answer: $4
Think about that the next time some neoconservative starts whining about liberals and their alternative energy–and you’ll see how much their oil-obsessive “energy policy” is costing YOU in cold hard cash.
I would figure 3-3.50 per gallon
By the way Crabby_blindguy – does that price include the 7200 dollars every three years to replace those batteries, or the disposal cost for those 24 batteries….