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For gas as low as 2005 pricing and ready to tax.
By dan | November 22, 2008
Hello neighbors and friends. Here it is late November and the low gas prices are going even lower. They are as low as 2005 pricing today here locally at $1.90.9 per gallon of low grade unleaded.
That is really a recent local thing. See back about 2 weeks ago the gas prices were still over $2.20 plus a gallon around here. That is a local petroleum mystery really when you consider Murphy Oil refinery is right here in town.
I happened upon a short news article dated November 11 2008 from the local newspaper the Duluth News Tribune citing how gas they deliver miles away from here is usually always bought at a cheaper price than what we pay here in town.
According to this story we see Duluth prices at $2.28 to $2.33 while further north in Two Harbors Minnesota the same gallon is costing $2.15.9. Quoting Two Harbors’ resident Trevor Swoverland, “I usually try to gas up in town here (Two Harbors) rather than in Duluth because it seems like gas is usually 8 to 10 cents cheaper.” source – The Duluth News Tribune.
Just a few more miles south over a bridge takes you to Superior where Murphy Oil is located. The price of gas here on that same day would have been 10 to 20 cents more expensive than that gas in Duluth. Same gas, same refinery, just a different state.
Most locals I talk to about this seem to buy the idea that taxes levied by Wisconsin are the reason. I agree. But I am a little more probing and unsatisfied with that reason as the only reason.
Think about it friends: what product do you know of that can be priced lower the further away you go from the source? I can’t think of any. Can you?
I think there is some local price fixing / gouging going on between the four or five local vendors who have a monopoly on the gas retail. I know that probably will not get far as a reason though. Big money protects big money right?
Maybe its just coincidence that after this article was printed within a week the prices began dropping. And even though they are now below $2.00 a gallon, the local price is still far above the national average.
Now getting to why the gas is going so low in price. Here are some thoughts: 1. The gang called OPEC is better off letting the oil barrel price drop keeping us on their hook for millions each day., 2. the feds want it low so people become complacent and they (the Feds) can say they need to add more tax on the fuel. While it is low the tax won’t seem like much but watch how soon after that the price begins to rise again., 3. The states like reason number 2 also.
Well,… that’s all for today my friends and neighbors. Take care – stay warm – keep a keen ear to the ground because when poop starts to hit the fan you will know before it flies your direction. You’ll hear it coming.
Topics: Local Poverty, Wisconsin, gas price | Comments Off
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