Supply Is Crucial Factor in Gas Pricing Issue
- Share via
Though I’m angry about the recent gas price hikes, I think I understand the basic economic principles at work. David Crain [“Gas Price Hikes Defy Explanation,” Letters, May 13] focuses on the demand side and ignores the supply side. He also makes a probable factual error in his contention that demand is not accelerating. The U.S. population has grown and there are far more SUVs, vans and minivans on the road. All have led to accelerating demand.
On the supply side, can anyone point to a new refinery in California in the last 10 years? Regulations governing formulations for different regions of the country mean supplies cannot be shifted from areas of surplus to areas of shortage as easily as in the past. Shifts for seasonal formulations mean production capacity is offline during the shift.
Joe Behan
Long Beach
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
