LJWorld.com weblogs Just about ... and more
Just About and More .......
On Wednesday, the price of a barrel of crude oil jumped $4.19 to reach $133.17 a barrel. Within 24 hours of this announcement the gas prices at pumps on Ninth Street (and no doubt across Lawrence) rose from $3.65 to $3.79. Can anyone explain this immediate 14 cent rise to me? How did those more expensive barrels of oil get to Lawrence so quickly? The gas already in the pumps, and that arriving just before many travel for the week-end was purchased at the lower price so why are we paying higher prices TODAY?Not to be outdone, some airlines are jumping on the bandwagon although, unlike the gas vendors in Lawrence, they have given us some advance warning. American Airlines will charge $15 for checking one bag after June 15. They blame the rising fuel prices. Discount airlines like Spirit in America, and Ryanair and Easyjet in Europe already charge for bag check-in, but they sell pretty cheap tickets. I flew from England to Ireland in April for $40-return with carry-on luggage. The ticket was 2 cents. Tax and fuel charges made up the rest but it was a pretty good deal. American Airline tickets will remain high, even increase, and the luggage charge will be added to that. I wonder if other airlines will follow suit, or hold out in the hope of gaining passengers annoyed with American Airlines?Meanwhile, as prices rose on Wednesday, top executives from the five largest oil companies were being questioned by Senate lawmakers about the effects of rising oil/gas prices on folks like us. The executives blamed crude oil for the rising gas prices. Mr.Expensively-dressed Well-fed ExonMobil-executive claimed his company only made about 4cents on every gallon of gas it sells in the US. Poor people only 4 cents a gallon profit? So, how come the gas prices in Lawrence jumped 14 cents within 24 hours of the price of crude oil being raised?