Ah, summer. You know what to expect, and most of it is quite wonderful. Barbecues, swimming, baseball, fireworks, no school, and … an explosion of gas prices?
Gas prices are up 17 cents a gallon in just the last two weeks. Must be because of rising demand, right? Wrong. Demand is in fact weak. So what gives?
My take is that oil company execs are traditional guys. They’re raising prices this summer because they raise prices every summer, recession and low demand be damned. The plan has worked pretty well for them in the past ($4 a gallon last summer), so why mess with a good thing?
Well, because it might prolong the recession, lowering demand even further. Americans are paying about $1 more per gallon than in December, according to a New Yorker story that also notes how the increase could very well quash a rebound in the economy. (The Times said pretty much the same thing last week.) The oil companies don’t care. Short-term profits are, well, profits.
The best thing you can do, outside of trading your car in for a BMX, is hunt for the best gas prices using a site like GasBuddy and adjust how you drive to get the best fuel efficiency. Don’t break or accelerate too hard, inflate your tires properly, close the windows, and follow other tips such as these.