Can we please stop talking about 'soaring gas prices'?

Here's a news flash: They're not soaring anymore. Actually, prices have leveled off for nearly two weeks, and in the L.A. area they're actually down a penny or two from last week, according to the Auto Club. Of course, prices remain quite high - an average gallon of regular is $4.378, up 19 cents from a month ago. And they've been elevated since late last year, raising understandable concerns about the potential economic drag. But let's put aside the Republican propaganda and enter the reality zone. if you go back to May, 2011, an average gallon of regular in L.A. was running nearly $4.30 a gallon, and in June 2008 there were at $4.60 (around the time then-candidate Hillary Clinton was blaming then-President George W. Bush for irresponsible energy policies). That's not even adjusting for inflation. Now, it's possible that prices will resume their run-up in the coming weeks, but it's also possible we'll see a gradual decline. I don't know. Nobody knows. How much we pay for gas will depend on the price of oil and the production capacity of U.S. refineries (both shadowy activities that get a lot less attention than they should). Meantime, it would be nice if more context were provided; I see some of it by the larger players (the Washington Post video below is a simple but accurate rundown, though you'll notice the "gas prices are soaring" mantra is repeated). Most of the locals are clueless. They report on gas prices the way they report NBA scores.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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