Elections And Gas Prices

Two years ago I made a cynical election prediction:

Gasoline prices are about to start climbing, and will continue to climb through the summer, and well into the fall. No one will be able to pin down exactly why.

Take a look at this from Leo Gerard, Refinery Murder Mystery.
Leo is noticing a pattern of refinery closings in time to drive gas prices WAY up for the election…
Huh, go figure.

One thought on “Elections And Gas Prices

  1. At least one of the reasons why gas prices rise in the summer, is that summer gas is more expensive to manufacture. This is caused by the need to balance the vapor pressure of the gasoline with the expected temperature that the gas is expected to be at in order to minimize smog. During the winter, up to 10% of you gasoline can be butane, which would boil out during the summer causing air pollution. A more detailed explanation can be found here:
    http://www.theoildrum.com/story/2006/9/13/234043/431
    Often when refineries change to summer blends, (possibly sooner than normal due to the unusually warm winter *cough* global-climate-change *cough*) yearly maintenance tasks will be undertaken, since they need to re-tune the refining lines anyway for the switch.
    This is not to say that there are other reasons driving the rise in price. I think the slow and fragile recovery of the global economy, along with speculation, are also significant portions of the rapid rise in cost.

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