You read right. It's our fault.
But you say we didn't have anything to do with it.
Here's my take on the oil and gas issue. First, oil is a commodity - limited supply and distribution. Gasoline is a product.
Can we have virtually a limitless supply of oil and gas? Absolutely. Can we make synthetic oil? We already do.
If we start treating oil as a product - that it can be produced at will, that it can be manufactured, that it can be obtained from more than one source, and that the game is wide open for competition - we'll fix this unbridled run-up and price instability. Oh, and don't forget offshore drilling because the Chinese won't.
Back to us. We - through inaction - permit Congress to allow states (and this is not a states rights issue) to determine gasoline blends for their states and as a result we have 57 (like Heinz) blends of gasoline throughout the year. We have one type of electricity (while we may produce it different ways). We need to have one type of gas. We don't let states choose different recipes for bread and milk. Set the standards if you like on that one blend and then go with it. Have 3 grades if you like, but even that's not necessary if all engines were designed to burn the same gas.
We allow gasoline to be taxed like there is no other source of tax revenue. That compounds the issue. Gasoline, as a product, is no different today - other than some additives - than it has been over the years. It should sell for under a dollar and has as recently as just a few years ago.
We act like imported oil is all we can get. We if act like we don't need it at all, see how rapidly the prices fall.
By inaction and default, it is our collective fault that gas prices sail right back up at 10-25 cents a day until it gets to a manipulated level that a few people want to achieve.
Unfortunately, too few people really understand this.
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Steve, it is that dang pre-summer fuel change thing they say every year. Personally I have always thought there was some conspiracy behind it.
We really do need to rid ourselves of the need for gasoline. And I'm not talking green talk here, I'm talking economically and for national safety purposes. The more we can rid ourselves of the need for foreign oil the more prosperous and safe we will be. Great post and best of luck.
Steve,
The president sign a bill to have all new cars getting 35mph in 10 years. The Chinese are already drilling off our coast, go figure.
Steve
Hey Steve,
I too am upset about this dibbacle. I don't understand how gas prices can go up and down like they do every year at the same time, and supposedly there isn't anyone behind it? PLEASSSEE!
-Lisa
Gary,
Conspiracy - not sure. Manipulation - defintely. That's why I say one grade for all. :)
Steve
Jerry,
Thanks. I agree with the foreign oil part, but we have sooooo much oil here - and it can be manufactured. Another energy source would be fine, but let's do all we can with what we have also. :)
Steve
Steve,
We've had that kind of program before. Look at auto windows now and they promise more mpg than they deliver. Just make gas more plentiful. :)
Steve
Lisa,
I really like your outrage. Very good. Now if we could find a few million more people that feel this way ... :)
Steve
Hi Steve
Some of the blame of our cost of energy is government mismanagement of our resouces.
Good luck and success.
Lou Ludwig
Steve, Gas is a bargain! Yes you heard me right, gas is a bargain compared to milk, Lattes and water. Buy a 20 oz. bottled water for 99 cents. (1 gallon = $3.17) Buy a gallon of milk $4.17. A Starbucks Grande Vanilla Latte $3.25 ( 1 gallon = $13)
Lou,
There is so much government responsibility for high energy prices - from mismanagement to taxation to over-regulation. Thanks. :)
Steve
Paul,
Good one. Too bad we can't drink gasoline since it's cheaper than what you cite. :)
Steve
Ah yes, Steve, but try getting a 3000 lb. vehicle 20 miles on a gallon of milk...
Paul,
That is a very interesting, and vivid notion. Of course, if you travel through the country, you'd always have a supply of milk nearby. :)
Steve
I bow to your logic sir :)
Except that oil cannot be produced at will and without end. We need to take a longer term view of the reasonableness of relying on oil for so much of our energy needs. By developing alternative sources of energy, demand for oil will drop, and prices will follow.
Tim,
We have the technology to produce and manufacture oil right now. It may too expensive to be widely feasible, but it can be done. This is more a of a political issue than economic and not likely to be solved in the short term. :)
Steve
Nice post Steve. Correct that technology is a political issue at the moment.
Kevin,
Thanks for joining in on this issue. Appreciate your comments. :)
Steve
It seems that Congress is simply in the pockets of the oil companies. Whether it be Dems of Republicans it doesn't seem like either has the will to wean us off foreign oil and clean up the whole system.
Rob,
That's an interesting word you use there - "will." Where there is a will there's a way. That's the missing element. :)
Steve