Gas price rant, (what are you paying)???

The price of fuel is set by what the market will allow. We have seen fuel prices go up to $5.00 per gallon in some areas of the country. When the prices get that high, people stop or reduce the amount they are consuming and the price falls. Very little of what is costs for raw materials, infra-structure, and labor to produce fuel determines the cost. The fact that fuel is traded as a commodity allows its pricing to be determined on demand and public sentiment.

And while we are in rant mode, My personal frustration is the use of ethanol. Fuel stations are getting bullied into using it because it is priced 2% lower than pure petroleum fuel because people tend to buy the cheapest fuel they can find. Problem is that the fuel that is "watered down" with Ethanol is 10% - 20% lower in fuel economy and thus requires us to buy more to drive the same distance as 100% petroleum.