Sunday, October 23, 2011

What if gas price increases are unnecessary? (And we think they are!)

Some information in this post made me wonder. What if gas prices have risen unnecessarily? What if they amount we have to pay is really way more than we should-way above the amount of inflating crude oil prices?

An example of what I mean is found on the page provided at the link below (more info provided below link):

Barefoot Investor: Oil prices up in Asia

More Comments From Me:

When I hear phrases such as "light sweet crude for delivery in November, added 93 cents to $83.91 a barrel" or "Brent North Sea crude for November delivery gained 53 cents to $106.41 [a barrel] it makes me not panic so much. As you can see the amount of increase on the $83 barrel is only about a penny per dollar or a little over 1% (figured .93 divided by $83.91 = .011 or 1.10 cents, or 1.1% )

The 53-cent increase on the $106.41 barrel figures out to only a less than a half of a cent per dollar. (It would be .00498 cents to be exact).

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