Quote:
Originally posted by sacX
and security premium in the price of crude.
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Another complete red herring: although crude prices have risen recently, they are still only at levels which account for a very small part of the huge increases at the pumps.
Rocketing pump prices are a consquence of the fact that there hasn't been a new refinery built in the US in the last 20 years, thus they run almost constantly at close to 100% capacity. Any increase in demand - and demand is still increasing, despite high prices - is met from outside the US. And costs more.
And it isn't going to get better so long as americans love their high-horsepower gas guzzlers. Just recently, the chairman of Valero (one of the big refiners) commented this is the best environment he's ever seen for refining profits.