That "analyst" is ignorant. Exxon does not set the price of oil, and they have little impact on the the price of gasoline. Exxon earns 9 cents on every dollar of gasoline sold. ExxonMobil cashes in by investing and working hard to get their product to the retail customer in the most efficient way. The federal government collects 18.4 cents per gallon in tax for doing nothing. Federal, state and local taxes total an average of 46 cents per gallon which is more than the 33 cents Exxon earned on a $3 gallon of gas.
The problem is taxes, supply/demand, and speculation.
That pretty much nails it. China and India are becoming absolutely ravenous oil consumers. Let's look at it historically-
Through the 80s, and into the 90s, the US was the biggest consumer of oil. Then things started to change when the US corporations started to take peoples' jobs away and gave them to people in India who would do it for pennies a day- IT outsourcing, for example- and then China for manufacturing. Now you have an entire subset of people who have been getting by on $2-3 dollars (equivalent) a DAY, now doubling or tripling their pay. With that enormous windfall, they started to get things they had always wanted, like clothes, shoes, better cuts of meat, etc. How to get to work, and get your new luxury items like TV's and clothes, new food, etc., home? In a car! Or, a scooter...
So now you have added to the equation. Jobs lost in US+Jobs found in developing countries+increased demand for fuel in developing countries+economic downturn in US+dollar weakened by 96% since 2000=you pay WAY more at the pump.
The speculators on the oil market aren't doing us any favors, either. Any time speculation is involved, prices usually jump. It's not in their interest to make prices go down, they don't make much money that way. Far better to bet on steady, large price jumps.
So it's going to continue this way for a long time. And if they pass a "gas tax holiday" for the summer months, they will simply raise prices by the same amount or more to cover their losses, so no net savings there for us. If we reduce our consumption significantly, we save on the front end at the pump, and the trickle-down effect will be reduced demand, thus lowering prices. I already drive one of the most fuel-efficient vehicles, the Chevy Metro, but even I am looking for ways to reduce my fuel consumption. My methods are:
Combine trips- If I need groceries, I get them on the way home from work.
Slow down- Instead of 75 on the freeway, I now do 55-60. I've seen the results as my mileage goes from 40 to 43 mpg on the freeway.
Tire inflation- I keep my tires over-inflated by about 5-7 psi. Instead of 32psi, I keep them at 37. Smaller contact patch= less friction loss. The trade-off is reduced braking power (negligible in my car, it's really light anyway) and a tendency to slide in corners (fun, as long as you know how to handle your vehicle).
I also put 3oz. of 100% pure acetone in my tank per 10 gallons of gas. Dramatic increase in mpg's- went from 36 mpg to over 40. When I don't put it in, my mileage goes right back down.
I run the lightest oil in my engine possible. Usually this is 5W-20 synthetic. Engine spends less power moving oil around.
Take everything you don't absolutely need out of the trunk. Instead of a spare, I carry a couple cans of fix-a-flat. If I have a blow-out, I have a friend with a wrecker I can call.
Easy on the acceleration- it's not a race.
Let off the power way before you have to and drift to the stop sign.
All these tips add up to some significant money. Keeping your car in good repair by taking care of maintenance before something breaks saves you money as well. New plugs every 50-60k, I run NGK Iridium, as they are a hotter plug. All those Bosch multi-prong plugs don't really work, because electricity always takes the path of least resistance, so they will only hit one of the electrodes anyway. There are no multiple sparks. Just one.
Anyway, that's what I do so far.
haha
