Gas price blame

To the editor:

I read John Kostrzewa’s column in the June 29th Providence Journal about gas stations and gas prices. It’s an incomplete article. He failed to explain why gas stations can’t raise their retail prices enough to make a profit.

The article left me wondering — why is this happening?

Later in the article you also seem to lead the reader into thinking that big oil is to blame for high gas prices. All businesses face the same problems that gas retailers do. They raise prices to cover increased costs. Only in a market with too many retailers, or too few customers, can this condition exist.

One wonders — why can’t stations make a profit now when they could before? Simple — they can’t raise their prices to increase their margins because there are too many gas stations. The market will weed out the marginal ones and the stronger ones will survive. Then they will be able to increase their margins and make a profit that will enable them to survive.

Who is to blame for high gas prices? Blame supply or demand. Pick one! The price of everything is determined by supply and demand — even diamonds. The diamond cartel limits the supply of its product and thereby keeps prices up.

By prohibiting drilling in the USA, Democrats are forcing us to pay high prices for energy. In this case I’d blame the Democrats in Congress who won’t permit any more drilling in the U.S. Republicans want to increase supply. Democrats want to decrease demand by having us reduce our lifestyle, but they won’t come right out and say it.

Do you want to walk or bicycle to work and keep your home at 60 degrees during the winter? Mainly the environmentalists are to blame for the Democrat’s attitude. They don’t want atomic energy plants, refineries, coal burning plants, drilling for oil, SUVs and large homes, except the ones that Al Gore and John Edwards live in.

These environmentalists are miserable people who have no faith in modern technology and want everyone else to be miserable also. France, for example, generates over 80 percent of its electrical power by using atomic power plants. Why can’t we? But we are behind the curve on this thanks to Jane Fonda and it will take years to catch up, and catch up we will. We’ll have to.

Next winter the “you know what” will hit the fan. Whoever is in the White House will have a problem when millions of Americans will have a serious problem paying for home heating oil.

Barak Obama will respond by blaming big oil and telling people to turn down their thermostats and use windmills and solar panels. John McCane will respond by, I hope, pushing for more atomic energy plants and more drilling for oil. Me — next winter I’ll be in southern Florida keeping warm. You worry about it.

Perhaps you could help by pointing your finger at those to blame for high gas prices. Like the looming Social Security and Medicare crisis, politicians have ignored having an energy policy. I don’t blame them. The environmental extremists are mean nasty people who want us to go back to living in the19th century. Me, I’ll put my faith in modern technology.

Incidentally, I drive four-cylinder, 5-speed Toyota Camry that gets 40 MPG on the highway. Its 20 years old. Talk about conservation.

Robert W. Orrell

Charlestown

Reviving bus service

To the editor:

I used the bus this past weekend so John Kostrzewa’s article about the end of the CapeX bus service was timely. It was very efficient and nice people driving it. It is too bad to see this service die along with the proposed cut backs at RIPTA.

Given the current cost of gasoline and the rise in prices on so many things public transportation is even more important not to mention the environment.

It would be nice to see officials take charge for once, get together and try to make it easier to use public transportation not harder.

Keep reminding us all.

Beverly Talladay

Coventry

To our readers

We welcome letters. Each must carry the writer’s printed name, address and daytime phone number. We reserve the right to edit submissions for space and clarity. Send letters to Business Editor, The Providence Journal, 75 Fountain St., Providence RI, 02902 or e-mail to pjbiz@projo.com.