What I’m really getting at is stories I vaguely remember over several years saying that ultimately the retail chain tries to set prices at a level that will move a particular quantity of gas in a given time frame. In other words, that it’s really more about maintaining flow rate than anything else. If that’s the case, having more refineries actually operating right now, as opposed to being shut down for various reasons, might give us significantly lower prices. This is of course a primarily “visible hand” argument, as opposed to a primarily “market forces” argument.

It shows Gas expenditures are at about 4% of PCE, not 5% like the article stated (also depends on what stat was used). Although he could be mean 5% of income which COULD be different from expenditures.

While 4% is not abnormally high (and definitely not the 6% like we had in the late 70s/early 80s), it still is a decent chunk that effects people psychologically, even though total energy expenditures have fallen (as shown in my post).

I agree with you though that poorer/lower class households spend a bigger % of their expenditures.

Good post by the way. Thanks.