Market Economics: Supply and Demand - Saab General Bulletin Board - Saabnet.com
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When gas is cheap, some people spring for the upgrade to mid-grade or premium, whether their cars benefit from it or not (not SAAB turbos). A lot of this is a result of the oil companies extolling the virtues of their "higher grade" products to an uninformed public. Now that gas is priced at or over $3.00 per gallon in the US, I have to believe that more people are actually thinking about how to "economize" on their $40+ fill-ups, and a logical starting place for them is to go for regular-grade gasoline. This leads to lower demand for the higher grade product and a surplus of supply. By pricing premium closer to regular, I believe that the oil companies are trying to win back some of that discretionary upgrade spending.
posted by 136.182.2...
Posts in this Thread:
- Why is premium and regular gas price difference less?, harry, Fri, 19 Aug 2005 11:25:22
- Premium less in Iowa, Dan from St Louis, Sun, 21 Aug 2005 16:44:39
- most near me are at 10/20c but i found a 5/10c jump, nateg, Sat, 20 Aug 2005 11:26:33
- Los Angeles- - La Can~ada/Glendale +10 +20, Geoff, Fri, 19 Aug 2005 22:17:11
- Premium is 20c above Plus, 30c above Reg. here, MJM , Fri, 19 Aug 2005 13:54:37
- Market Economics: Supply and Demand, Bill Homer , Fri, 19 Aug 2005 13:18:16 <-- Viewing This Message
- Re: Why is premium and regular gas price difference les, steveC, Fri, 19 Aug 2005 12:22:21
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