GAS PRICE`s are going up I heard it this morning,...

[fabsroman]

Hawkeye,

You should see how much gas is in Bethesda, Maryland. It is $3.00 a gallon for regular because it is the high rent district. By my parents it is $2.61 for regular and by me it is $2.41 for regular. I guess I am the lucky one. Diesel by my is $2.55 probably because the station is right next to I-270. However, at my parents diesel is $2.45.

What I do not understand is how there is no competition between Middle East oil companies or the gas stations in the US. Or is it just that oil costs that much.

I kind of understand the inelastic demand curve, but isn't competition supposed to have a little impact on it. Also, even if demand is inelastic, there is always supply side.