Gas prices: Supply and Demand Strikes Again
According to the Lehrer Newshour, SUV sales hit a record high last quarter, accounting for 29% of all new vehicles sold in the US. A U of Chicago professor says that, out of the $.45/gal average gas price increase we’ve seen in the last year, $.15 of that is SUV demand, $.20 is OPEC, and the rest is refinery production issues.
The show polled people on the street to ask, “When will you give up your SUV? $2.50/gallon? $3.00/gallon?” All people resonded, “Never.”