What Goes Up Must Come Down…Right?

Over the past months we Americans have clearly learned the value of a gallon of gas. In our petroleum desperation and fear of the unknown, a variety of superstitions that at any other time would appear silly, have begun popping up everywhere. We remove our tail gates, avoid moving the steering wheel, and reduce the load in the car as much as possible. We have rolled the windows down to reduce AC gas consumption and rolled them back up to reduce drag (effectively creating a car sauna). Why? We have a false sense of control.

Gas executives are also trying to exert their control, by maintaining high gas prices, even as the barrel price has fallen well under $100. Good ole’ John Matarese explains that due to “downward price rigidity,” gas companies are trying to suck us dry down to the last drop. By stalling price reduction, they try to get every last bit out of the high prices they can before the lower prices. Talk about price gouging. The verdict—what goes up will come down, when the higher ups are good and ready.