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ABC News: Blame Banks For High Gas Prices

From an ever blame shifting ABC News:

High Gas Prices: Should You Blame Your Bank?

By Lisa Stark
April 10, 2012

Should you blame your bank for high gas prices? A new report out today says it’s not just supply-and-demand and Middle East politics that determines the price of a barrel of crude; Visa and Master Card and the other card companies share some of the blame for the high price of gasoline, the report said.

The new report by the National Association of Convenience Stores says it’s those so-called swipe fees at gas stations. That’s the fee that stores have to pay credit card companies every time a card is swiped. (Congress took aim at those fees for debit cards, but not credit cards).

So it isn’t the Obama administration’s fault or Congress’s. They just haven’t gotten around to regulating this fee yet. But don’t worry, they will.

According to the report, when gasoline is $4 a gallon, about 7 cents of that can be blamed on swipe fees. At $4.50 a gallon, the fee rises to 7.6 cents. That swipe fee, which is partly a percentage of the sales price, goes up with the price of gas.

Wow! A whopping 7 cents in $4 a gallon gas goes to the banks. Just wait until Occupy Wall Street and the rest of the Obama campaign hear about this!

In the grand scheme of things, swipe fees don’t represent a huge portion of the price. By some estimates the recent jump in gasoline prices has added only an additional $30 a year to the average driver’s fuel bill.

And Obama’s wonderful payroll tax cut will cover that, too.

But convenience stores, which sell a lot of gasoline, point out that folks will drive a great distance just to save a few cents a gallon. They also say that these hidden fees get passed on to every customer, even those paying cash, because it’s a cost of doing business.

Huh? How are cash paying customers paying this fee? Oh, never mind. It turns out, we don’t have anything to worry about, anyway.

From USA Today:

Gas price surge is likely finished

By Gary Strauss, USA TODAY
April 10, 2012

This year’s surge in gasoline prices appears over, falling short of the record highs some had feared heading into peak summer driving season.

Prices have held at a national average of $3.92 a gallon the past week, below 2011’s $3.99 high and July 2008’s record $4.11.

"By the behavior of the market, things are just running out of steam," said Patrick DeHaan, senior analyst for price tracker gasbuddy.com. "Barring any major event — refinery problems, Iran — I think prices have peaked."

And never mind that CNN reported just yesterday that up to 50% of the refineries on the East Coast of the US are going to close in the next few months. And never mind that even Obama is now threatening military action against Iran. The gas price crisis is over.

DeHaan said the national average could dip to $3.70 a gallon by early May. Typically, prices peak shortly before Memorial Day

And Mr. Obama approves this message.

Signs that the global economy is slowing should keep a lid on short-term prices, said Telvent energy editor Brian Milne

What great news. Hopefully, we will have another worldwide recession, which will really bring the price down.

There’s also optimism that the political tensions with Iran — which boosted crude oil prices by $15 to $20 a barrel on speculative trading — could soon ease, Milne said…

Mr. Milne must reside on another planet.

This article was posted by Steve on Wednesday, April 11th, 2012. Comments are currently closed.

6 Responses to “ABC News: Blame Banks For High Gas Prices”

  1. mr_bill says:

    So “swipe fees” raise the cost of gasoline. I wonder what all the government fees and taxes do….to the cost of everything.

  2. Petronius says:

    “This year’s surge in gasoline prices appears over . . . .”

    Can we take that advice to the bank?

  3. untrainable says:

    We’re supposed to blame the bank for high gas prices because there is a 7 cent fee for the swipe. Well, I don’t know about all of you but I only swipe my card once when I pay $40 to fill up my tank. So I pay $39.93 for the gas and the local state and federal taxes and 7 cents to the bank. However, there is a flat 18.4 cents PER GALLON tax that goes to the federal government. So of my $40 (roughly 10 gallons) the government gets $1.84.

    Now I ask you, which is contributing more to the high price of my tank of gas? 7 cents per tank to the bank, or the $1.84 that goes to the federal government. If I’m supposed to be angry at my bank for 7 cents… what word should I use for my feelings towards the government? Acrimony, animosity, antagonism, fury, indignation, rage???

  4. P. Aaron says:

    This is phoned in journalism.

  5. AcornsRNutz says:

    And lets not forget that at many truck stops they actually offer the gas cheaper if you don’t use a credit card, particularly for deisel since truckers buy ponderous amounts of fuel at one time and guys with deisel pickups may not. Last time I saw this it was closer to a 4 cent difference, and brought the price down to just a shade over 4 bucks instead of a shade and 4 cents. Big whoop.


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