Well, it seems that gas prices are at a record high in the Bay Area. I thought I was on crack last night when I filled up my tank in San Francisco and saw the pump reading $24.78–it was $2.22 per gallon! This used to cost me $18-20 just a few months ago. What the hell happened?

Apparently, the fear of war is driving the price of crude (and consequently gas) sky high. If the war starts, the demand will go up dramatically (for use of military vehicles, etc.) while the supply will shrink (Iraq’s supply of crude will have a hard time leaving the country and entering the world market).

The result: double-effect pressure raising the price of crude oil. In the short term, this should make refiners happy, since they can charge more for gas created from cheaper crude supply on hand. I bet my friends employer, Valero, is making a grip of money right now.

Bottom line, if we think the price is high now we better think of how high it will be once the first bombs drop. We might as well grab our ankles as we drive into a gas station. Stay tuned.

1 Comment »

  1. My Civic use to cost me 10-11 dollars to fill up and today it cost me $22. This is crazy!

    #1 by Lisa — March 5, 2003 @ 5:49 am

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