Remember when doomsayers such as
Paul Ehrlich and Lester Brown predicted massive energy shortages and enormous
oil and gas prices as the world began to use up its store of fossil fuels?
On March 8 the Associated Press reported that gasoline prices reached
a historic low.
Citing figures from the Lundberg
Survey, which checks 10,000 gasoline stations nationwide for the price
of gasoline, as of March 6 gasoline was selling at its lowest price ever.
“The decline since September
qualifies as a price crash, and the pump price on average is now lower
than its ever been since the begging of the gasoline market, taking
inflation into account,” said Tribly Lundberg.
A barrel of crude oil was selling
for $15, down from $24 just a year ago.
Why the decline in prices? Competition.
A price war has broken out among refiners and distributors, while crude
oil prices remain stagnant given the enormous world supply.
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