Thursday, October 25, 2012

Gas Prices....Free Market?

This morning I filled my vehicle up with gas.  Now I am angry.  It cost me $4.07 per gallon for regular unleaded.  This price is well above both the state average here in NY and the average for my local area.  When I inquired as to why I was told that they are still selling their summer supply.  What?  What kind of free market practice is that?  Everyone questions the free market and pricing practices of Wall Street and nobody seems to question this practice.  Imagine how wonderful it would be to say I bought too many shares of the S&P 500 at 1459 so that is what I am going to sell it for today, even though the actual price is 1408.

I realize that today's post is not stock market related, but with the constant barrage of insults laid on the pricing practices of Wall Street, I thought it was important to point out this ridiculous pricing practice by the retail organizations selling gasoline.  If you bought too much supply at a higher price, then that is not the consumer's fault.  They took on the risk of buying at that price and should suffer the losses for doing so.

Jon R. Orcutt, founder of Allocation For Life, is an asset allocation strategist and author of “Master the Markets with Mutual Funds: A Common Sense Guide To Investing Success”; Manager/Creator of the AFL Model Portfolios available for members of Allocation For Life in self-directed accounts at Folio Investing