What's going on with gas pricing?

Yesterday's news on KDKA let us know that gas prices in the eastern part of our state are around $3.32, or about 35 cents less than here in the Pittsburgh area.

Two weeks ago, I was in the Summerset area and the price at most stations there was $3.75, while prices in the Pittsburgh area were running around $3.89.

I know stations can set their own prices, but I don't see how there can be such large discrepancies without some other alterior motives coming into play, either by the distributors or local merchants.  Supply and demand?  If the demand is great, should prices go up or down?  Is the demand in Philadelphia less or greater than here in Pittsburgh?

I'm sure a lot of the blame for high pricing can be placed on the oil companies and then trickle down to local merchants.  Free enterprise.  However, with gas prices affecting so many people and their lifestyles, where are our state and federal politicians?  The question has been asked before, and politicians have replied with their non-answers. 

They stick their collective noses into such things as cheating in the NFL and Janet Jackson's wardrobe.  Where are they when it comes to something really important?  "We can't get involved in free enterprise.  It's supply and demand," and so on, they say

Just think, if all of our politicians, local, state, and federal got together for this cause, don't you think something would happen?  But, as long as they have that "can't do" attitude and as long as many of them are being subsidised by the oil companies, nothing will get done.

There's no reason for such helter-skelter pricing of gasoline such as has been going on for the past few years.  It's time, when you go to the polls, to stop pulling one lever and time to start looking at the person and what has the incumbant done for the masses and not just for me.  Until our elected officials are held up to some type of higher standard, they'll just continue to dodge the bullets and just sit back and reap their high pays and lucrative benefits and percs.  I don't believe they can't do something about gas prices

bossman

While, on the surface, there seems to be some disparity in the way the oil companies charge customers in various geographical areas different prices for gasoline, this may not necessarily be the case.  When you take into consideration the potential competition due to the sheer number of gas stations in Allegheny County when compared to the number in Somerset or Mercer County, the price should logically be lower in Pittsburgh than in Johnstown.  As “bossman” points out, this is not the case.  With a little research on my own I was able to discover the main reason for this anomaly is the extra tax placed on fuel sold in Allegheny County.  From what I could ascertain, it appears there is an extra 9 to 10 percent tax charged by the City of Pittsburgh and the surrounding communities (It was not clear if this tax is charged by the county or the city) in addition to the federal and state taxes that are already applied to fuel sales.

Just one more reason why business is leaving “our fair city” in droves.  When will our local representatives learn the simple fact that money always goes where it is appreciated and treated fairly?  If you want to attract business to Allegheny County, lower the cost of doing business.  On the other hand, if you want to continue to see a steady decline in business and population, maintain the current course of raising tax rates as you please.  To see the eventual result of such folly, “Google” the town of Asbury Park, NJ, a once thriving resort town that is now comprised primarily of an abandoned boardwalk and empty businesses.  The city leaders there did the same things to their town:  Raise tax rates on business...  When business leaves, raise tax rates again to make up for lost revenue…  When more business leaves, raise tax rates again to make up for more lost revenue…  Eventually, every business will leave and what is left will looks like a ghost town.

This year, gas prices have reached record highs.  People like to blame the “greedy” oil companies, and proposals have been advanced to tax their “windfall profits”.  The odd thing is that, even though the local, state and federal government puts little to no effort into finding, drilling for or refining oil into gasoline, their “profits” (in the form of taxes) far surpass those of the oil companies that expend the energy, resources and the risk of producing this valuable commodity.  The average profit on a gallon of regular unleaded gas is between 6 and 8 percent (About 17 cents per gallon), whereas the average Federal State and Local tax on the same gallon of fuel exceeds 60 cents per gallon (See www.pittsburghgasprices.com/tax_info.aspx ).  Rather than complain about the oil companies, we should be persuading our representatives to work to allow oil companies to increase the supply of our nation’s oil while developing alternate forms of energy.  Additionally, we each need to make sure we are electing officials who will reduce taxes, including fuel taxes, rather than increasing them at every opportunity.

I am with you, “bossman”.  I think we should be able to do something about the gas prices.  What I intend to do is to continue to expose the greed of our local government and the excessive tax burden they continue to heap on the tax payers of Allegheny County.

 It appears the last half of my "post" was not lined up properly.  Here is a more properly formated version:

While, on the surface, there seems to be some disparity in the way the oil companies charge customers in various geographical areas different prices for gasoline, this may not necessarily be the case.  When you take into consideration the potential competition due to the sheer number of gas stations in Allegheny County when compared to the number in Somerset or Mercer County, the price should logically be lower in Pittsburgh than in Johnstown.  As “bossman” points out, this is not the case.  With a little research on my own I was able to discover the main reason for this anomaly is the extra tax placed on fuel sold in Allegheny County.  From what I could ascertain, it appears there is an extra 9 to 10 percent tax charged by the City of Pittsburgh and the surrounding communities (It was not clear if this tax is charged by the county or the city) in addition to the federal and state taxes that are already applied to fuel sales.

Just one more reason why business is leaving “our fair city” in droves.  When will our local representatives learn the simple fact that money always goes where it is appreciated and treated fairly?  If you want to attract business to Allegheny County, lower the cost of doing business.  On the other hand, if you want to continue to see a steady decline in business and population, maintain the current course of raising tax rates as you please.  To see the eventual result of such folly, “Google” the town of Asbury Park, NJ, a once thriving resort town that is now comprised primarily of an abandoned boardwalk and empty businesses.  The city leaders there did the same things to their town:  Raise tax rates on business...  When business leaves, raise tax rates again to make up for lost revenue…  When more business leaves, raise tax rates again to make up for more lost revenue…  Eventually, every business will leave and what is left will looks like a ghost town.

This year, gas prices have reached record highs.  People like to blame the “greedy” oil companies, and proposals have been advanced to tax their “windfall profits”.  The odd thing is that, even though the local, state and federal government puts little to no effort into finding, drilling for or refining oil into gasoline, their “profits” (in the form of taxes) far surpass those of the oil companies that expend the energy, resources and the risk of producing this valuable commodity.  The average profit on a gallon of regular unleaded gas is between 6 and 8 percent (About 17 cents per gallon), whereas the average Federal State and Local tax on the same gallon of fuel exceeds 60 cents per gallon (See www.pittsburghgasprices.com/tax_info.aspx ).  Rather than complain about the oil companies, we should be persuading our representatives to work to allow oil companies to increase the supply of our nation’s oil while developing alternate forms of energy.  Additionally, we each need to make sure we are electing officials who will reduce taxes, including fuel taxes, rather than increasing them at every opportunity.

I am with you, “bossman”.  I think we should be able to do something about the gas prices.  What I intend to do is to continue to expose the greed of our local government and the excessive tax burden they continue to heap on the tax payers of Allegheny County.

It's apparent the oil companies have decided to lower prices so John McCain has a better chance to win in November! They think the electorate has a short attention span and a temporary price decline will ease their fears about the Republican administration's impotent attempts to deal with inflationary pressures in the food and energy sectors of the American economy!

Toadsly,

That's ridiculous thinking.

There's enough blame to go around, but I think it starts with the Congress who haven't done anything while they have been in command.

Nancy Pelosi shut things down for the summer!

As for me, I'm going to take Obama's advice and get my tires inflated properly.  There's some brain-boggling advice from the man who wants to rule the country.

I guess his past experience on the streets of chicago taught him this.

But to think that the oil companies are interested in this election is absurd.  They're out to make a profit in a free trade society.  It's the oil speculators that decide the fate of gas prices.

Obama wants to raise the taxes on their profits.  Another absurd idea!  Don't you think, in turn, they will raise prices to cover this tax increase? 

I think you have to open your eyes and become a little more open minded to both sides and stop going into the polling booth and pulling the straight lever because you think the democrats have done so much for us.  Vote for the person and not the party.  Maybe you do, but it sure doesn't seem like it from your comment about McCain and his relationship with the oil companies.

No offense,

Bossman Mike

 Dear Bossman Mike,

No offense taken.

I'm open-minded and enjoy listening to other opinions on different issues. That's what's so powerful about blogging. Neither party has done much to abate the fantastic increase in oil prices, maybe an informed electorate will hold their feet to the fire. 

I think both McCain and Obama are fine people and it's going to be a very close election. I believe Gov. Palin was a good choice for the Republicans.

Toadsly