Ever wonder why the price of gasoline increased overnight after a spike in the cost of a barrel of oil on the same day? As the story goes, the current war in Iran precipitated this scenario.
The day before the war began in February, the highest cost of a gallon of unleaded gasoline in Clark County was $3.90. The day after, it rose to an astonishing $4.80 -$5.30 per gallon.
It begs the question – how can a $35 per barrel cost of oil the day the war started raise the cost of the fuel already in the ground a few days prior? The answer is it doesn’t!
The culprit – price gouging! Think back to March 2020 when the worldwide pandemic began. Remember the panic many experienced rushing to the grocery stores and online ordering of basic necessities and the corresponding hoarding we were all doing.
The demands far exceeded the stores to provide the products – “they” said. Once you were able to get some of the basics (such as toilet paper) you noticed that the size of the products was less than what you purchased previously.
Also, the cost of those products was higher. In other words, you paid more for less. No one really complained because we had something we needed every day regardless of the costs.
Of course, that sentiment changed when the crisis abated. That’s when many of us questioned how the greedy companies got away with what they were doing.
The answer was simple – no one was “watching the store.” The regulatory agencies certainly were not doing their job. In all likelihood, because they too were in a panic for their families.
The oil companies and grocery stores are keenly aware that when any crises occur, they can profit from our fear! That’s just human nature and basic business practice right?
Of course they deny this and plead that they were doing the best they can with limited resources. The problem with this line of thinking is that with inflated profit margins and corresponding bottom line profits realized, their compassion seems a bit hypocritical and farcical! Who says you can’t make money from other people’s misery?
