Comments on: Average Gas Prices Not so Average http://www.mmhabits.com/average-gas-prices-not-so-average/ To Achieve... To Succeeed... Fri, 21 Nov 2008 09:38:08 +0000 http://wordpress.org/?v=2.6.3 By: HF Markets http://www.mmhabits.com/average-gas-prices-not-so-average/#comment-1322 HF Markets Tue, 27 May 2008 10:11:14 +0000 http://www.mmhabits.com/?p=212#comment-1322 You make a good point. I am not sure I agree with the statement that prices will never go down, although your historical reference to "they never do" is pretty much accurate. I think that governemnts will have to review the taxation involved because high gas prices will, inevitably, hurt the economy over the medium term. Hedging has been a way for airlines and transport companies to offset the rising cost of fuel, but sooner or later this hedge will fall off the books and prices will rise significantly. Hopefully, by this time, the producers of oil will realise that their golden goose is slowly being strangled and will up production in order to restore reasonable prices. You make a good point. I am not sure I agree with the statement that prices will never go down, although your historical reference to "they never do" is pretty much accurate. I think that governemnts will have to review the taxation involved because high gas prices will, inevitably, hurt the economy over the medium term.

Hedging has been a way for airlines and transport companies to offset the rising cost of fuel, but sooner or later this hedge will fall off the books and prices will rise significantly. Hopefully, by this time, the producers of oil will realise that their golden goose is slowly being strangled and will up production in order to restore reasonable prices.

]]>