I have a history with gas. I mean the kind you put into your car’s tank. In my youth, I was a gas pump jockey, before I became a radio disc jockey.
You see, in an effort to get me off the couch, my dad offered to pay me two cents per gallon for the gas I pumped at our family store. We had 3 pumps, back when you could say “Exxon” without thinking “Valdez” or “oil spill.” I was the guy who “put a tiger in your tank!” We sold a lot of gas, for about 30 cents a gallon. Most of our customers bought “regular” or “high test” and a few preferred the pump in the middle which was neither regular nor high.
Sometimes the oil companies would jack up the price a couple of pennies, and people would yell, “When it gets up to 35 cents, I’ll just walk!” Well, it soon did, but I never saw an increase in pedestrian traffic. Now we’re thrilled if it creeps down toward two bucks a gallon, because it has been so much higher on occasion.
That’s why I called Patrick DeHaan. Officially he’s the head of petroleum analysis for Gas Buddy. He’s the guy you see on TV when the cable news channels try to explain why gas prices suddenly shot up, or slowly went down.
In fact, that was my first question. Whenever there’s a strong wind in the Gulf, or conflict in the Middle East, gas goes up 25 cents in the blink of an eye. However, even when the wind fails to blow Jim Cantore’s cap off, it takes a while before prices creep down to normal.
“It does appear the oil companies pass along increases quickly,” DeHaan said, “although it varies from city to city. Each station buys gas at different times, so for some it might take a day or two. But the stations are reluctant to pass along a decrease. Sometimes they try to make up what they lost if their replacement cost was higher than expected. But thanks to competition, it always comes down eventually.”
Yes, good old competition. “It’s a game,” DeHaan said. “They monitor each other, much like the airlines. They charge whatever the market will bear.”
What about the politicians, I asked him. When gas prices are up, they take no responsibility. But when prices are low, they’ll bellow, “Since I took office, gas prices are down, so you can buy more Slim Jims and Red Bull!”
DeHaan laughed and said, “Other than the taxes you pay on each gallon of gas, politicians have little or nothing to do with the ups and downs you see at the pump.”
DeHaan also talked about some of the myths many of us have believed. “First, the oil companies don’t jack up prices before every holiday,” he said. “It might seem like it sometimes, but they merely react to the world market, and that’s why prices fluctuate.”
Also, unlike my gas-pumping days, you’ll rarely see a branded tanker truck, like Shell or Chevron. “But wherever you buy gas, it’s good quality,” he said. “Today’s technology ensures that water is quickly detected. There will be times when your local station might have a leak in their tank, but that’s very rare.”
DeHaan said, “Some consumers think the oil companies are run by greedy villains, but most of them are good, decent people. Are there bad apples? Sure, and they have had to take responsibility for oil spills, price gouging, and other bad actions, but they’re paying for their misdeeds. The market dictates prices, and the government demands quality and safety, so all things considered, Americans have an abundant supply of affordable fuel.”
He then assured me that presidents, and elections have no bearing on the price at the pump. Think about it. If getting re-elected was as simple as low gas prices, wouldn’t the president always make sure prices were low?Compared to some nations, we have been fortunate. Sure, we would all love lower prices, but the supply has been plentiful, and we can go anywhere we wish. Be thankful. As DeHaan said, “As we have learned, everything is subject to change.”
David Carroll is a Chattanooga news anchor, and his new book “I Won’t Be Your Escape Goat” is available on his website, ChattanoogaRadioTV.com. You may contact him at 900 Whitehall Road, Chattanooga, TN 37405, or at RadioTV2020@yahoo.com.
