My car doesn't get very good gas mileage.
I'm usually lucky to get 200 miles on 13 to 15 gallons of gas. That's only about 13 miles to the gallon, in town. If I drive on U.S. 31 down to Indianapolis at the same constant speed, without stopping, my gas mileage is somewhat better.
My 1982 Plymouth Gran Fury, bright red, has a huge engine and a steel frame. It's a relatively cool car and used to belong to a fire marshal.
The 1987 yellow Chevy Celebrity I wrecked in '97 got a lot better gas mileage though.
Now that gas prices have sunk to 70 cents per gallon at several service stations, I don't mind filling my car up every time I stop at a station - which I seem to constantly be doing. And I make sure to drive to the nearest gas station with the cheapest quality gas.
Several stations haven't reduced their prices yet. I've seen a few that still sell a gallon of gas for 86 cents. That's about 23 percent more than the stations selling their gas currently at 70 cents per gallon. Maybe they don't know the rule of supply and demand.
Currently, the supply of oil is more than the demand. Whenever the supply is more than the demand, the prices should drop. The main reason the supply is glutted is because during the "blizzard" very few people were on the roads.
When the supply becomes less than the demand, the price will increase. People usually pay high amounts of money for something when they want or need it. Last Christmas, people were paying outrageous prices for "Furby" because the supply was very little and the demand was exceptional.
If another blizzard hits in February as some people have predicted, the demand won't be increasing any time soon, though, and I'll be buying cheap gas for at least a couple more months. I tend to drive more when I'm not too worried about the cost of gasoline.
Local service stations are the best place to see the rule of supply and demand in action. In this area, once the summer season hits and tourism begins to rise, gas prices hit the roof. Service stations know that people need gas for their automobiles so they can cruise around, or drive to the lake, or go hang out with friends. County residents need gasoline for their boats, motorcycles, lawnmowers or other gasoline-powered vehicles as well.
In the summer, buying gas for my car, especially in this area, takes a huge chunk of my income. I love to drive around, my windows rolled down, enjoying the summer weather, but unfortunately that takes gas.
I'll probably drive a lot to Indianapolis this summer, too, to go to as many concerts as my pocketbook can handle. The service stations will love that.
Regardless of how much I drive, I would love to see the 70 cents per gallon stay the same as long as possible. Or, better yet, when other towns like Kokomo, Peru or Fort Wayne have gas prices in the 70-cent range, Kosciusko County service stations could reduce their prices to the same level. Too many times service stations in this county will keep their gas prices high while every other station elsewhere will drop theirs considerably.
By keeping gas prices cheap in the area, service stations can 1) avoid looking greedy, 2) keep local people buying gas locally, and 3) entice people to buy at their service station, thus getting them to enter their store and possibly buy a 2-liter soda, doughnuts or a magazine or newspaper.
If the service stations jack up the prices regardless of supply and demand and regardless of what other area cities and towns are charging, three things could happen. The service stations could 1) look greedy, 2) entice people to buy gas out of the area, or 3) lose money not only on gas, but also on pop, candy and magazines when no one stops by.
I understand why service stations will charge as much as possible. They want to make a profit as much as any other type of business. However, service stations are a little different in that the need for gas has became as big a need as milk and bread. People drive to work, to school, to their extracurricular activities, to church and to other families' households.
I don't think the employees of the service stations are personally responsible for the outrageous prices sometimes seen. They don't set the gas price, they just ring it up on the cash register.
And if the service stations don't make a profit, they may go out of business. That's the way it works.
But there is a difference between making a profit and being greedy.
Greed is defined as excessive desire for wealth. Profit is defined as the sum remaining after deducting costs. The difference is clearly evident in their definitions.
Sometimes, it just appears that greed has become more important than making customers happy at the cash registers. But, in the end, it will be the local service stations who lose when their greed gets so excessive that customers drive farther and farther away to buy gas at a cheaper rate.
It's a game about supply and demand. Drivers are losing this game, though.