Silver lining??

One of the good things about the turbulent economy (I'm not calling it failing yet) is that gas prices have been dropping -- gasp, during Bush's reign too --

Oil prices skid to 2008 low on falling demand:

"The drop in demand is weighing heavily on gasoline prices. Gasoline futures fell to a one-year low of $1.95 a gallon on the Nymex before paring some of this losses to trade 4.3 cents lower at $2.0198 a gallon.

Meanwhile at the pump, a gallon of regular fell about 3 cents overnight to a new national average of $3.447 a gallon Wednesday, but remain well above the year-ago average of $2.765 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express."

So the question becomes -- why aren't the prices falling at the gas pump?

What is it that is causing the prices the general public sees/pays to be twice as much as the futures price? I'm not totally convinced that it is just the oil companies making money -- federal gas tax is supposed to be something like 50cents a gallon, then there is the cost of additives which need to be put in the gas to meet emissions regulations, etc.

But still -- you would think that the prices should have to go down more from where they are at now ... I think I would rather gas taxes were percentage/gallon based instead of a flat rate -- but try to tell congress they need to give money back!

Then there is the question as to 'where' the money for the gas-tax goes? It is supposed to go to the upkeep of roads ... but it is not based on usage within a state, but rather goes into a pot and is part of the general fund from what I am told.

oh but wouldn't it be nice if the prices would keep going down? Maybe, someday, we will see gas for under $1/gallon ....

Yeah I know -- I laughed at that one too!