Companies gouging motorists with every rising gas prices

Thu, Apr 18, 1996 (11:59 a.m.)

Actually, the cost of producing a gallon of gas goes down as the volume being manufactured goes up, so that the net profit for the manufacturers increases during high demand, even if the retail price stays the same.

Another common statement from these companies is that they have to cover the cost of drilling and exploration. Why, then, do they lower the cost of gas every winter?

I don't think they will respond to this letter, as they are holding all the cards and can do what they want.

Doug Stadt

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