We keep hearing on the news that oil prices are slipping, but when you go to fill up your car, the price of gasoline is higher.  Why?

According to USA Today, refiners are to blame:

• Refiners are cutting back on production
• Performing maintenance to reduce equipment utilization
• Decreasing the supply of gasoline on the market

The refiners are squeezing supply to match the reduced demand resulting in increased profits.  It is hard to blame them, since every other business would try the same thing, but we are all paying for it.  This just underscores how little control we, the consumer, have over the price of gasoline.

Between the refiners and then the speculators bidding up the price of oil futures, what are we to do?  Well they have control over the supply side, so our control can come from reducing demand.  Aggressively pursuing alternative energy and increased conservation are our only defense.  How do you plan to cut your gasoline consumption this year?

photo credit: Jacob Garcia