Exxon Oil Spill and Higher Gas Prices
Regarding the increases in wholesale gasoline prices charged by the oil companies as a direct result of the Alaskan oil spill, I am impressed with how quickly these companies can now respond to fluctuations in the marketplace: mere days!
Why, just three years ago, when crude oil dropped below $10 a barrel, it took up to six months before those suddenly lowered costs were passed on to consumers. At that time, the oil companies stated that this delay was due to gasoline prices being dependent on outstanding contracts that were based on older higher oil prices.
My hearty congratulations to these companies for increasing their efficiency so as to ensure that consumers are paying pump prices that accurately reflect the fair-market price of oil in effect at that time. I’ll be looking forward to instantaneous drops in gasoline prices once oil tankers can resume shipments from Alaska.
TIM WARREN
San Diego
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