10 Groups that benefit from high gas prices

Everyone here in the states is talking about the high price of gas these days.

It seems that’s all anyone is talking about.

With the average price of self-serve unleaded gas over $4 a gallon one must wonder, “Who benefits from this sharp rise in fuel costs?”

In my quest to answer this question I uncovered some interesting answers.

Some are obvious and a few may not be so obvious.

If by chance I have forgotten any, leave a comment below.

Lobbyists

From For lobbyists, high gas prices are good news
There may be one group of people who don’t mind the soaring oil prices — lobbyists.

Rising gas prices have provided steady employment on K Street, even if the spike has made it more expensive to fill up the SUVs lobbyists seem to favor.

Advocates of various stripes have had to fend off a variety of legislation that would do everything from opening OPEC up to antitrust lawsuits, to allowing oil and gas developers access to offshore areas now off-limits, to taxing “windfall profits” the industry now gets and redirecting the money to promote renewable energy.

None of these proposals ever has much hope of passing, although they return every year, meaning new contracts for K Street.
Fake gas mileage enhancing products - There are a ton of these things on the market now. Everything from gas additives to fuel line gadgets.

From 6 gas-saving myths
Before you buy a device that’s supposed to make your car more fuel-efficient or pour in an allegedly gas-saving additive, ask yourself this: Don’t you think oil and car companies aren’t doing everything they can to beat their competitors?

If BP (BP) could add something to its gasoline that made cars go farther on a gallon, cars would be lining up at the company’s pumps. Sure, people would burn their fuel-saving BP gas more slowly, but then they’d drive right past rivals’ gas stations to come back to BP for more. BP stations could even charge more for their gas and still sell tons of the stuff.

So if there really was an additive that made gas burn up more slowly, it wouldn’t be sold over the Internet one bottle at a time.

Likewise, car companies are already spending big bucks to increase fuel mileage. If General Motors could make its cars go significantly farther on a gallon simply by putting a device into the fuel line, don’t think for a second it wouldn’t be doing that. GM’s car sales would go through the roof.

“There are a number of these gas-saving devices that are generally useless,” says Champion.

But drivers who try them will swear they work. In reality, it’s probably an automotive placebo effect, says Reed. Buy one of these devices or additives, and you’re like to pay extreme attention to your fuel economy and how you drive.
Discount retailers - With people spending more of their paycheck on fuel they are forced to spend less in other areas. But people still need to food, clothing, and school supplies and so they are heading to the stores with the lowest prices.
Politicians - Without a crisis at hand how would they be able to convince us that they should be elected? The politician who can use the issue of high gas prices to their favor will most likely win the election.
The media - They feed off one crisis after another. The higher & faster gas prices raise the more newspapers they will sell.
Government employees in the state of Utah

From Utah goes to 4-day workweek to save energy
In a yearlong experiment aimed at reducing the state’s energy costs and commuters’ gasoline expenses, Utah is about to become the first state to switch to a four-day workweek for thousands of government employees.

They will put in 10-hour days, Monday through Thursday, and have Fridays off, freeing them to golf, shop, spend time with the kids or do anything else that strikes their fancy. They will get paid the same as before.

“One of the jokes is that one of the biggest benefits will be for golf courses,” said Ryan Walker, 49, an information technology director. He said he is looking forward to tackling items on his long-neglected “honey-do” list (As in: “Honey, do this” and “Honey, do that”); camping; and traveling more around the state.
Makers of oil exploration & drilling equipment - As the price of oil continues to climb more and more countries have an incentive to start exploring and drilling their own untapped reserves. And to do this they will need specialized heavy machinery.
Makers of the Prius & other hybrids

From Prius Sales Top 1 Million. Want One? Better Move Fast [May 15, 2008]
Toyota says cumulative worldwide sales of the Prius hit 1,028,000 last month — when sales jumped 67 percent amid record gas prices — and claims the cars have eased global warming “by producing approximately 4.5 million tons less C02 when compared with gasoline-powered vehicles in the same class.”

Despite Toyota’s impressive sales figures, hybrids are still just 2.3 percent of the U.S. market. That number is sure to change as consumers ditch their gas-guzzlers. Hybrid sales rose 38 percent last year even as overall vehicle sales fell, and with gas prices approaching four bucks a gallon, Toyota’s having trouble meeting demand for the Prius.

Priuses (some say the plural is Priora) are getting harder to find in showrooms and buyers are paying more for them. Toyota says domestic inventory is limited by production capacity in Japan, which is shared by the Asian and European markets. The U.S. supply is at its lowest level in two years, according to Bloomberg, and things will only get worse as demand rises.

“This is a special vehicle, and as fuel prices keep rising, it gets more special,” Toyota spokesman John Hanson told Bloomberg. “Right now, U.S. customers can get a Prius. Next month or the month after that, it’s tough to say.”
Sellers of the Geo Metro and other small cars

From Gas prices drive Geos from clunkers to chic
The 1996 2-door 3-cylinder Metro Solomon now owns opened on eBay May 7 with a bid of $200. A week later, Solomon won the car auction with a bid of $7,300. In 1995, a new Metro hatchback sold for about $9,000, according to Auto Mall USA.

In May alone, 43 Metros of various years and models were sold on eBay, ranging in price from $221.50 to Solomon’s bid of $7,300. The cars have been hot items, drawing upwards of 49 bids on certain vehicles, with many of the auctions coming down to last-second bidding wars. On Tuesday morning, 34 Metros were still up for grabs.

Since her eBay purchase, Solomon has acquired another Metro, which she is considering flipping on eBay for profit. She has her eye on a third at a local car lot.
Big oil - always easy to blame

Prices in the U.S.A for gas are at all-time highs but things could be worse:

From Think Gas is High? Try Europe
European governments put a much higher tax burden on fuel than the U.S. does. State and federal taxes currently make up just 11% of the pump price in the U.S., according to the Energy Information Administration; in France and the U.K., taxes account for an average of around 70%.

And there are a few who believe the rise is a good thing and want it to go even higher:

From Call me crazy, but rising gas prices are a good thing
I’m sure this will delight those who’ve wondered what institution I’ve escaped from. I am very pleased with the increasing prices of gasoline. I only wish that it would go higher – about $6 a gallon would be about right in my opinion.

What are your thoughts on the rising cost of gas? And is who is to blame? And is it a good thing?

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