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Re: Petroprices, journalism and life



> simple laws of supply and demand
Inquiries made of four wholesalers-jobbers, seven retail outlets, one 
tanker-supply company and one better business bureau serving the Inland 
Northwest during a one-week period produced ZERO information to 
interested consumers. If truly only "supply and demand" factors determine 
the prices paid in this urban area, these enterprises need not have 
refused to indicate the competition they face and the real prices they 
must pay to move their products in an open, uncontrolled market. The 
unusually high "captive" student popoulations here (some 30,000) are not 
mobile enough to break the price fix by driving 30 or more miles in any 
direction to fuel their vehicles at 20%  lower prices (.95 in Lewiston). 
Most average wage earners can't either, and so they are also "stuck". 
Affluent persons need not bother. But if the average Palouse vehicle 
covers 10K per year the difference in savings is close to $l50-200 -- not 
insignificant for a family of 4 or five members. But beyond the dollars 
and cents, it's the principle of fairness and, in the case of discounts 
foregone, a matter of "who is benefiting" from the 25-30% drop in crude 
prices since July l998. In the vast majority of communities across the 
country, including WA and southern ID, enterprises have passed the 
discounts along to their consumers. What changes in basic economics, 
demand and supply over the past month have caused a 15 c. drop in pump 
prices here? That is truly both an economic and a moral issue, plus the 
revolting spectre of greed which is deplorable. Consider the living costs 
facing a new young school teacher earning $19-20K a year.
    You do make some interesting points about trade-offs that those who 
choose to live in this high-quality environment ought to be willing to 
absorb for the privilege. But  the "sacrifices" ought not to be of that 
contrived character. At the same time, there are other similar 
communities in the NW and Northcentral US (Great Lakes) which compare 
very favorably with this area but unscared by such unfair practices. 
Firms, and their consumers, who depend on service vehicles for business 
must increase their prices, etc. Food and cloting prices, however, are in 
line with those in all towns and cities in the region, perhaps because 
their shippers pay lower prices at points of departure and aren't 
required to "fill up" here?
   Many people, who can easily afford it, would not mind paying higher 
fuel prices if the "excess profits" went ot environmental, highway or 
perhaps health  services beneficial to all citizens, not just to a small 
group. West Europe's fuel prices are 4 X ours, but their average incomes 
are 2-3 times ours, engine capacities smaller,  and their urban 
congestion greater -- requiring more enviornmental controls.  Let's have 
more fair-mindedness, gentler attitudes and community spirit in 
approaching these controversial matters!


------------------------
William K. Medlin
Dev-plan associates
930 Kenneth Street
Moscow ID 83843
208/892-0148
dev-plan@moscow.com




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