Time To Travel This Summer

A steady decrease in the cost of a gallon of gas could spell a busy summer on the roads the likes of which we haven’t seen since 2005. Usually from memorial day onwards gas prices increase but all indications at the moment are that they will continue to fall.

It is common belief among experts that the financial turmoil in europe is causing a pessimistic outlook on market investment which in turn is causing a fall in crude oil prices. It has dropped by around 15% roughly $13 in the last 3 weeks.

This is in contradiction to a rise in consumption which goes against the grain of traditional supply and demand theory.

Whilst the fall in crude oil prices is fairly substancial it is unlikely that gas prices will follow quite so quickly whilst gas-station owners struggle to manage their profit margins. Or so they will have you believe, in truth there is as always a little profiteering going on here.

I truly believe that there is no reason since their supplier prices fluctuate why the end user should not gain the benefit of such dips in raw material cost.

On a recent trip to the UK I couldn’t help but notice that their gas prices were more than 4 times US prices and I was even more surprised to find out that over 75% of that was duty or taxation.

However they seem to suffer the same “rise like a rocket and fall like a feather” phenominon.