Demand for gas outstripping production

“We’re being gouged at the gas pumps” perpetuates a misconception that the price of gasoline is strictly tied to the price of oil.

The letter from R.W. Calderwood titled “We’re being gouged at the gas pumps” (Aug. 5) perpetuates a common misconception that the price of gasoline is strictly tied to the price of oil.

Gasoline is a separate trading commodity as a refined product. While there is a correlation between the two, they don’t always match.

Right now there is a glut of oil on the world market according to all the reports I’ve read, while there is a shortage of gasoline. Global demand for gasoline is outstripping production.

That is one of the reasons the price at the pump don’t match the news reports.

 

Peter D. Morris

Mill Bay