I first heard this on Fox News on Tuesday when I was home with a sick kid, that some yokels were shutting down their gas stations. One of those guys is Jeff Curro, in the greater Milwaukee metropolitan area.
“The way I see it is, I’m doing all the work of providing the labor, the wages, the electricity, the lighting, the maintenance of the pumps, the repairs and the insurance, which is quite substantial,” Curro said. “I’m doing all the work, and somebody else is getting fat on me.”
Let’s see here. Our economy is based on supply and demand. The demand for gasoline will continue to increase. At some point when the demand for “alternative fuels” is outpacing the increase of demand of gasoline, the gasoline prices should see a natural decline as the demand drops and supply keeps steady. The refining capabilities in the United States have been stable since 1976. Of course, an Exxon Mobile exectutive said that said that company foresees no need to build new refineries at least through the year 2030.
So gasoline supply has been relatively stable coming from the refineries. Demand increases from automobile drivers, creating more gas stations. Demand increases as do prices. So now these guys add to the decrease in supply in the immediate area, increasing supply. Over the national average, it won’t have an impact, but prices still increase in the area.
If Jeff Curro, Casey O’Gorman, and others want to get out of the gasoline sales, go ahead and sell your station to someone who will continue to sell gas. Move your auto repair shop or convenience market somewhere else. In the meantime, BLOW IT OUT YOUR PIE HOLE!
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This post was tagged with economics, gasoline, pie hole.
