PART of the reasons that noone has touched is that the oil companies will not add any more production facilities...it costs too much. The EPA regulations on that now is basically impossible for them to do add new facilities. THIS is why you have ups and downs in "inventory". They take various plants offline for maintenance and upgrades each year...(many times during the winter months). THAT drives up costs.
Is there manipulation of the market...sure...always will be as long as you are a slave to oil based products. California is also to blame for most of the costs (the taxes mentioned above)...but to also forget...the higher the average income is in an area along with say real estate values, prices are higher. A price in Walmart is higher in CA or NY city than it would be say in Athens, GA...why you ask?? because that is what the market will bear given the money it takes to live there and the average salaries paid. This is why jumping the average wage to $15/hr means that prices WILL rise in good and services to close the "gain" made by that increase.
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