Nickeled, Dimed, and Dollared

Spring is in the air: the birds are chirping, the flowers are blooming and the media is blathering to whip the public into a frenzy about high gasoline prices. The chart below shows the national average prices for regular grade gasoline. Prices have increased $1 per gallon since as recently as November 2010. While it might not help soothe the sting to the publics’ pocket book in the short-run, a look at market fundamentals will help explain the cause of the run-up and perhaps a prognosis for relief. Download here