by Dave Lindorff | The Smirking Chimp, May 17, 2008
Americans are in a panic over rising gas and heating oil prices, and with reason. For months, the price of a barrel of crude oil has been rising steadily, hitting a record $127 yesterday.
Analysts keep getting trotted out on TV and in print, attributing the dramatic price rise to everything from “peak oil” — the idea that producing countries have reached their peak of productive capacity, and that the only direction for oil supplies looking forward is down, while demand continues to rise — to increasing demand in China and India, to supply bottlenecks, to specific news events, like a pipeline break in Nigeria, or a closed refinery in California.
Politicians, like Republican presidential candidate John McCain and Democratic presidential candidate Hillary Clinton, have called for a two-month moratorium on federal gas taxes, but with taxes running at something on the order of 18 cents a gallon, this is not going to do much to bring prices down-in fact it might do nothing, since retailers would be free to just raise prices to match the tax break, and pocket the profits.
Peace and Justice Post 
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