Reasons for High Gas Prices
Constantly rising gas prices have consumers frustrated and confused, says UAB economist Henry McCarl, Ph.D.
"A number of mergers within the oil industry coupled with higher prices for crude oil are two of the reasons for higher prices at the pumps. Another reason is some stations are participating in price leadership behavior -- one station sets a price and others raise their price to that level -- a signal for less-than-competitive pricing called "oligopoly" by economists."
McCarl adds that recent attempts by political leaders to lower the prices, like a temporary suspension in collection of gas taxes or pressuring OPEC to increase production, are only Band-Aid fixes to larger, more complicated problems within the oil industry.
Contact Helen Todd, Media Relations, 205-934-3888 or [email protected].
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