	Bob Hostetler > Writing

Running on Empty

by Bob Hostetler

Supply and demand I understand.

Market forces I understand.

Seasonal shifts in the availability of commodities I understand.

But for the life of me, I can’t understand the ebb and flow of gasoline prices in our great country. I pulled a few gas pump receipts at random from my desk drawer, and charted the price I paid for a gallon of gas in the month of September:

Sept. 1 in Hamilton, OH: $3.09

Sept. 8 in Hebron, KY: $2.86

Sept. 13 in Oxford, OH: $2.79

Sept. 17 in Fairfield, OH: $2.59

Sept. 27 in Hamilton, OH: $2.36

Sept. 29 in Hamilton, OH: $2.79

Now, I’m no math whiz, but I’m pretty sure that’s a swing of 73 cents…and all of it after Hurricane Katrina devastated New Orleans. The last two prices listed were both after Hurricane Rita hit the Texas coast. Both storms were said to be factors in spiking gas prices before and after the actual events.

Other factors cited in recent price increases, of course, are the increase in global demand for oil (particularly from China) and political events in the Middle East (such as Iraq). Sure, okay. I get that.

But none of those market influences explains why a gallon of gasoline—in the same city, for crying out loud—would cost $2.36 one day and $2.79 two days later (and, though I didn’t buy gas on this day, $2.94 the very next day!). Oh, I know, I’ve heard people explain that the price of a gallon of gasoline is based not on what my local station paid to fill their tanks last week, nor on what their parent company paid for oil in the pipeline today, but on what they expect to pay in coming months. In other words (if I’m hearing these folks right), when I fill my tank, I’m paying the profit margin the company wants on December or January’s supply.

Is it just me, or is this crazy? Imagine if this practice were common for other purchases. Strawberries would cost more in the summer because they’re going to be scarce in the winter. We would be charged a huge profit margin for this year’s Kia Spectra because the dealer is going to need that money to buy next year’s models. And movie theaters would charge admission based on what studios are going to pay their stars next year.

This is how it works with gasoline, however, for several reasons. For one, oil is not a renewable resource. In addition, gasoline is a necessity for most people in our country and culture. Mostly, though, I’m guessing it happens this way because we put up with it.

With gas prices across the nation averaging $3.05 a gallon, AAA still predicted a slight increase in Labor Day travel this year. When I read that, I shook my head in disbelief. What does it take for Americans to change their way of thinking and acting? Will gas have to be $4 a gallon before we curtail our discretionary travel? Will it have to be $5 a gallon before we start buying smaller cars (or those more expensive hybrids)? Will $6 a gallon motivate us to carpool?

Of course, I work out of my home, so I don’t have much of a commute. Like most Butler Countians, I live nowhere near a bus line. And neither of my family’s vehicles are gas hogs (but neither do they get great mileage). But I’m ready to change. I’m sick of burning money. I’m curtailing unnecessary trips (we drove six whole miles on Labor Day). I’m checking my tire pressure and air filter—today. I’ll be combining trips every chance I get. I’m keeping my car’s air conditioner off and the windows up whenever possible. Shoot, I might even walk or ride a bike once in a while.

And the next time I go car shopping, I will pay a lot more attention to that MPG figure than ever before.

This article appeared in the October 7, 2005, edition of the Hamilton Journal-News.

More articles by Bob Hostetler...