Whats Wrong ??

December 2nd, 2005 by Anand

I live in an area surrounded by almost 10 gas stations so always get a chance to figure out which station has the lowest gas price. I always notice that gas prices tend to go up on Friday & weekends.

I happened to fill-up my tank yesterday @ $2.06 for regular 87 and when I check the same petrol bunk the prices are up to $2.15 for the same regular 87. Just think about the people filling cars with premium gas.

Seems like prices tend to go up during the weekend as gas dealers expect more people to hit the roads during weekend and thus increase the consumption.

Late October, Exxon Mobil released their third quarter reports disclosing a jump in profit of nearly 10 billion dollars. This has been the fattest corporate profit in history of Exxon Mobil. Oil company stocks are up some 40 percent from a year ago, giving big gains to shareholders.

Who controls fixing of gas price? I mean how can the price change by $.10 in a day’s time. Are the oil companies manipulating the customers or is manipulated by the gas dealers? Comments / suggestions welcome.

With the raise in gas prices, the demand for SUV vehicles seems to have slowed down in last couple of months, especially the low mileage ones. Many automobile experts consider this to be one of the main reasons for Ford & GM to lose battle to the Honda & Toyota. The sales & profit of Japanese automakers has been consistently rising even during the bad times this country had been facing, the recession, the 9/11 terrorist acts & the on-going war on Iraq.

I had been renting cars for last 4-5 years during my consulting career. I did get a chance to test drive almost all the brands that run in the mid-size and standard size category. I feel that Japanese cars beat American cars hands down in comfortability, mileage & performance. I feel it is high time American automakers start giving more importance to these factors.

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