High Gas Prices Wiping Out the Little Guy

It was reported today that some local gas stations have closed their gas pumps. The station owners were reported as saying they weren't making any money on the stuff anyways.

So here is my question. When a station owner has to pay $3.44 a gallon for his gas and can only sell it for $3.48, what's the profit?

Just for the sake of argument, you bought a station that has three holding tanks, one for each grade. Each tank holds 5,000 gallons. Tanks can hold anywhere from 2,000 to 10,000. That means a profit of $600.

Wait. What?!?! $600?

A realistic look at the problems facing the small time gas station owner reveals the driver is not the only one affected by this constant increase in prices.

First of all, an average corner station can only sell between 4000 to 4500 gallons of that gas or they risk the sludge from the bottom of the tanks getting into the system. Bad gas will shut someone down quicker than high prices. The profit just went down to $540.

Add the expense of mortgage payments and other overhead expenditures and that gas station just became a liability or someone's tax write-off.

So who is getting rich here?

It has been reported by CBS News that New Jersey is the only state right now with unleaded gas being under $3.00 a gallon.

The report went on to state that AAA says the Midwest has many refineries under repair. This is definitely putting a hurt on the consumer. But what is it doing to the little guy?

This is supposed to be the land of opportunity. A man or woman is allowed to live the "American Dream". Who is setting the standards for that dream?

What has happened to our middle class? Forget the Yuppies and Generation X. What about the hard working American who pays their taxes and mows their lawn and coaches Little League?

It seems to me that if Bush Administration wants to help with the crisis, a penalty for price gouging should be levied on the oil companies. Crude oil prices are dropping. So where is the problem?

Someone forgot the standard law of supply and demand. If you have a product that is in demand, you can set a good price. If you can't produce it fast enough, the price can get astronomical. Refineries can't keep up with the demands by America for fuel.

You can not tell me someone, somewhere did not see this coming. With all the market analyzers we have in Toon Town....uh, I mean George Town, someone had to know we would need to refine more fuel as the demand grew.

Another oversight in the race to keep lining the deep pockets of the already rich and famous. Or is that infamous?