The kinds of emails I get about gas prices

3 comments July 16th, 2009

So I wrote a story about gas prices a week and a half ago, noting that they’d gone down significantly in the previous few weeks (and, thankfully, they keep going down). But I noted that several sources think prices will go back up in the next year or so, depending on how the economy recovers. (I also used the term “minispike” in a front page referral to the story).

That gets me this email from a frequent critic:

MR. BONA,

~      “MINISPIKE” ???? A DOLLAR A GALLON IN ABOUT 40 DAYS….MINI ?
~      “$4 PER GALLON AGAIN WHEN ECONOMY IMPROVES” PER MR ARNOLD ?
~      YOU AND MR. ARNOLD CONTINUE IN YOUR ARTICLE TO ARROGANTLY, AND
IN A CONDESCENDING MANNER, TELL US WE NEED TO CHANGE OUR WAYS
BY DICTATING WE ALL NEED TO GO TO LITTLE PUTTT/PUTTS TO GET AROUND.

WE ALL KNOW MR. ARNOLD SETS THE SPIKE PRICES IN ROCKFORD, EVEN THOUGH YOU WILL NOT ADMIT IT, AND THEN THE REST OF THE STATIONS FOLLOW IN COLLUSION, WITHIN AN HOUR MAX.

WHY DO YOU PERSONALLY FEEL THE NEED TO CONTUNUALLY, REPEATEDLY, HABITUALLY ACT
AS A PUBLIC MOUTHPIECE FOR MR. ARNOLD AND HIS GREEDY ILK ?

WHY DON’T YOU EVER CHALLENGE THESE GUYS YOU QUOTE ?

DO YOU AND MR. ARNOLD EVEN HAVE A CLUE AS TO  WHAT THE $4 PRICES DID TO THIS ECONOMY ? I SERIOUSLY DOUBT THAT THE ADVERSE EFFECTS ON SUCH HAVE EVEN INFILTRATED EITHER OF YOU TWO GUYS LIFE, LIKE IT HAS 90% OF US OUT HERE. GOD ONLY KNOWS WHEN WE WILL EVER RECOVER, AND YOU TWO GUYS LEARNED NOTHING BY THE “$4 RIGGINGS”, IN THAT YOU ALREADY HAVE STATED, AS A MATTER OF FACT, THAT THIS WILL REPEAT ITSELF.

WHEN CAN WE LOOK FOR YOU TO START TAKING A STAND FOR “WE, THE PEOPLE” ?

STOP THE PROMOTING ON BEHALF OF THE OIL INDUSTRY, MR BONA, AND START SUPPORTING THE OUTCRY FOR AN INVESTIGATION INTO THIS CORRUPT, GREEDY INDUSTRY.

WE, YOUR READERS, NEED AND EXPECT AN IMMEDIATE CHANGE IN YOUR M.O., MR.  BONA ! !

Now, he writes me every time I write about gas prices, accusing me of this, that and the other thing (as if I’m getting rich off the oil industry … anyone who knows my standard of living knows I must hide it well). Here is my response:

I’ll hit your points one by one:

- “Minispike” - it was mini compared to the previous two years’ spike, plus it didn’t last too long and has since somewhat abated. That’s why we called it a mini spike.
- Dan Arnold isn’t the only one who suggests gas prices could return to $4 when the economy improves globally. The same forces that led to the last run up - rapid growth in China and India vs. questions about long-term supply, the value of the dollar vs. other currencies and the effect of speculation - will be back in force.
- It stands to reason that the less fuel that’s used, the lower prices will be over time. That’s basic economics - when a product is very popular, its price is at a premium; when the popularity wanes, the price drops. So, yes, one frequent suggestion is that if Americans find ways to curb their fuel consumption, it could help with prices at the pump. If you want to use a bigger vehicle, that may be your prerogative, but you’ll pay more as you use more. It’s merely a suggestion from him, and others.
- One gas station chain in town does not “set” prices. What happens is the ones that are part of bigger chains get orders from outside the area, based on wholesale prices and trends, via computer or phone. Road Ranger of course does their own calculation too. The reason prices tend to change in concert, it’s because A. they’re using a lot of the same information on wholesale prices, B. they’re also sending people out on the street several times a day to check competitors prices and C. they don’t want to be priced too far different from competitors. You may see that last part as malicious but here’s the reason - if they’re priced way too high, they lose business to competitors, but if they’re priced too low they lose money on their margins and long-term can’t compete.
- Of course we know what $4 gas did to the economy. I write almost every day about the recession and how it’s hurting folks. And despite what you assume, Road Ranger and other retailers did not have record years in same-store sales … because even though gas prices were up, in-store sales went down accordingly. People have the same amount of money to spend at Road Ranger, etc., they just spent more on gas and less on other stuff. But high gas prices come from forces outside of Rockford.
- Just because it’s complicated and  there are no easy answers does not make me a promoter for the oil industry. I’m sorry I can’t give you the simple answers you crave. My allegiance is to the facts, and telling people what they need to know, not promoting one opinion or industry over another. On that regard, I will not change…

Now, I enjoy getting questions from readers … and I like a good conversation. So if you have any questions on why gas prices are what they are, send them my way. Just don’t hope for easy answers.

Wind farm instead of airport at Peotone?

Add comment July 16th, 2009

Well, don’t get your hopes up too much, opponents of a new south suburban Chicago airport. But The Southtown Star is reporting that some area residents there would rather bring in a wind farm than the much-talked-about airport.

It’s somewhat of a crazy concept for now, but local residents and airport opponents are starting to court companies that specialize in developing wind farms to see if there is any interest.

A lot of dominoes would have to fall for the south suburbs to get their own Windy City.

Since 2001, the Illinois Department of Transportation has acquired more than 2,100 acres of the roughly 5,000 needed for the airport.

But the airport is no closer to getting built, leaving vacant tracts that no longer generate tax revenue for local governments.

“It’s just sitting there, doing nothing,” Will Township Supervisor Brian Cann said. “We want to investigate all of our possibilities.”

Just as long as they they don’t steal our solar farm idea.

The story goes on to say it’s unlikely, though, that the state would yield on its plan for a south suburban airport.  The capital plan signed Monday by Gov. Quinn includes at least $125 million toward the airport project, and Quinn vowed earlier this year to get it built.

Chicago Rockford International Airport officials continue to feel they can do the job of a Peotone airport. Executive Director Bob O’Brien said this week, ““I find it disappointing, personally and professionally, when existing going airports and businesses can benefit and bring jobs faster than continued land banking and related efforts at Peotone.”

RFD expects to get funding from the capital plan, too, though officials aren’t sure yet which projects will get funding.