>>>>>I'm assuming this was meant for me.
>>>>>
>>>>>The rise and fall of gasoline prices is due to competition. The oil that is currently being traded on the market will not become gasoline for 3+ months. When crude prices rise gas stations raise their prices in order to maintain their miniscule profit margin on future purchases. Gasoline formulas are strictly regulated so all gas stations are purchasing the essentially the same refined product so the prices stay within pennies of each other. When crude oil drops in price it's competition amongst various stations which drives the price down. Counterintuitively it's during the downturn when retailers make larger profit for a short period of time.
>>>>>
>>>>>There have been multiple studies and Congressional hearings regarding price gouging which have resulted in nothing.
>>>>>
>>>>>If you want to see actual gouging look no further than milk in New York. The price is fixed by regulation, yet 86% of stores have been caught overcharging. That's gouging. Never mind the cost to produce milk has gone up and the price controls squeeze if not eliminate the profit.
>>>>
>>>>Oil is a fungible commodity - an amusing illustration at http://www.freerepublic.com/focus/f-news/1584659/posts
>>>>
>>>>It helps to think of "capitalist markets" like democracy - the absolute worst system possible, except for all the others ...
>>>
>>>He uses that wonderful phrase again. Changes in the amount supplied or the amount demanded cause the price to go up or down. As if it is governed by some irrefutable law of physics based on Planck's constant and not human beings looking for opportunities for profit. By that logic, there is no such thing as gouging. After all, if supply is low and demand is high, it's out of the hands of the seller. Remember that next time there is a blackout and 'C' batteries are selling for $50.00 a pop.
>>
>>Free markets would do fine with supply/demand; in other words, these two will gravitate to each other as if based on physical constants. The problem is that free market is never free, i.e. it always get distorted by humans, usually, for the sake of common good. Ironically, those who promote distortions are usually the same who complain about market shortcomings. Talk about inherent hypocrisy.
>
>I'm glad you said 'usually' for the sake of the common good. I don't see that with the oil industry. It seems there to be usually for the sake of their collective pocket.

Once again, please justify this presumption of greed and conspiracy in light on an 8.3% profit margin.

In 2006 when Exxon Mobile returned 18% it was 10th on the list for returns. I'm not sure where it ranked in 2007 but I'll wager its a lot lower, yet I don't hear the calls for windfall taxes and nationalization of technology and cola.