Investment Contrarians

economic recover

How to Benefit from High Gas Prices

By for Investment Contrarians | Feb 12, 2013

Benefit from High Gas PricesI’m not sure if you realize this, but the gasoline prices at your pumping station have been on the rise for the last 21 days, based on data from the U.S. Energy Information Administration (EIA). Market watchers blame the rise on industry factors, but we all know that a major reason for the higher prices at the pumps is the greed of the big oil companies that are always looking for reasons to drive gas prices back upward, to make big profits. Isn’t that what America is all about? Screw the small guy!

The price of regular gasoline averaged $3.54 per gallon across the United States as of February 4, up nearly six cents from a year earlier, according to the EIA.

The price of regular gasoline was a mere $1.19 a gallon back on August 20, 1990, and it peaked at $4.05 on July 14, 2008. The low point for gasoline prices was $0.88 per gallon, last reached on February 22, 1999. (Source: U.S. Energy Information Administration web site, last accessed February 11, 2013.)

In my view, the age of cheap gasoline is over—at least here in the United States. You can always move to Venezuela, where the heavily subsidized gasoline costs a mere $0.09 per gallon; instead of paying $120.00 to fill my SUV here, it would cost just over $3.00 for a fill-up in Venezuela, making for some great road trips that wouldn’t empty my bank account.

The oil companies are ripping us off, and it has little to do with the oil prices.

In July 2008, gasoline was priced at $4.11 per gallon. The WTI oil … Read More