What's That Got to Do...

...with the price of tea in China?

That's a phrase you hear when someone gives you an explanation for something and you don't really think it has anything to do with what you were talking about. Lately I keep feeling like I should be saying "What's that got to do with the price of gas in Pittsburgh?"

Over the last year the price of gas has basically doubled. In some parts of the country it has close to tripled. Next to anything else I have to buy on a regular basis this is the price that has gone up the most, and its nearest competitor isn't even close. The fact is that we really don't see it, but the rising gas prices have fueled rises in cost for everything, anything that ships, travels, or uses energy. Basically everything.

You can tell we're being bamboozled here because the reasoning keeps changing. First we're told it has to do with a special environmental formulation, then we're told it is because of a shortage of refineries, then we're told it is because of the gulf war, then we're told its because of futures trading and the fear of energy needs in China down the road.

I don't know what it is, but I am fairly certain that whenever I hear a dozen different root causes for something that we're getting a snow job. And by the way, wasn't the war in Iraq supposed to I lower world oil prices? Did you know that Iraq is currently importing oil to meet their own needs?

I smell crapweasels. Time to call shenanigans.

This is the latest excuse. Because the government mandates MTBE additives to reduce emissions, and because environmental activists are starting to look at MTBE as a groundwater pollutant, and because congress would not give the refiners a liability exemption for possible damage for the additive that they never wanted to add anyway; because of all this one of the major refiners has said they are going to stop adding MTBE to their gasoline, making it unsellable in the US and likely triggering a price hike of 7 to 9 cents a gallon for US consumers.

I don't know where to come down on the MTBE question. Both sides have good questions and limited science. But I do know this, it has nothing to do with the price of gas in Pittsburgh.

Whatever is up with MTBE, refineries, the war, futures, whatever, it's a smokescreen. One need only look at two facts:

1. Gas prices are up close to 100%
2. Oil company profits are up more than 100%

Really I think that's all we need to know, and that's really all there is to the price of gas wherever. The companies that are selling the gas are doubling their prices (as a group) and putting the money in their pockets.

That simple. All the rest is crap.

Its fairly clear that there's some kind of price fixing going on here. Its fairly clear that we're being lied to. Its fairly clear that the bodies responsible for doing the oversight are doing nothing.

Seems fairly clear that the current administrations relationship with big oil is protecting them. And squeezing us.

Of the people, by the people, and for the people. Not.