Jun 2, 2008 11:46 pm US/Eastern
High Gas Prices Boggling Curious Minds
BOSTON (WBZ) ―
When WBZ asked viewers to
declare their curiosity, most wrote about sky high gas prices. On Monday, the average in Massachusetts reached a new high at $3.96 per gallon.
WBZ's Christina Hager went to the experts with some of the questions viewers emailed. "I'm curious why gas stations keep raising the price of gas that they already have in the pumps," writes Barry from Laconia, New Hampshire.
"We can't afford to sit with gasoline that's costing us 6 cents to 10 cents replacement in the tanks. We have to make a move," explains Leo Vercollone, who owns 20 service stations in Massachusetts.
"The challenge for us as retailers is, if we have a 6 cent increase today, a 4 cent increase tomorrow, and I have a 3 cent increase the day after that, that's 13 cents in 3 days, and I'm going up in intervals of 2 to 4 cents. I'm still behind the eight ball," says Vercollone.
Another viewer is focused on solutions. Rich, from Newmarket writes, "I'm curious why the federal government has not considered re-establishing the national 55 mile per hour speed limit, which was ordered back in the 70's when we had gas shortages and lines at gas stations? It is proven that this will save the country billions of barrels of oil and could ultimately bring down prices!"
We put that question to Art Kinsman, of AAA Southern New England. "They did that back in the 70's because there was a shortage. It's a different situation now. Prices are high, but supplies, relatively speaking, are plentiful," he says. "I'm not so sure that would do the trick right now because these skyrocketing prices are more to do with speculation on the commodities markets."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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