Skip to main content

View Diary: Koch Power Raised Gasoline Prices By 40 Cents A Gallon Overnight (83 comments)

Comment Preferences

  •  Sudden spikes of this magnitude are unsustainable (7+ / 0-)

    over long periods of time.  Demand drops dramatically, at least in Minnesota, when the price exceeds $4.00 per gallon. People drive less, stop driving or use alternative transportation. Inventories bulge, and the refinery knows it must drop prices to restore demand and reduce inventories. That is why gas prices creep up slowly over time, lulling the market, and that is why a sudden spike is not good business but it sure looks to be good politics, and that is why, I think, Koch  had to wait to spike the market until the crucial last 5 days of he legislative session.

    I never claimed that Koch could price gasoline at any amount he felt like, only that he had the power to push it to $4.29 a gallon for  a couple of weeks, and that is all, apparently, he needed to do.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site