Please explain the economics of energy and oil.
July 31, 2008 5:23 AM Subscribe
How do gas companies get away with raising prices so much when they are reporting such high profits?
posted by F.Jasmine Addams to Law & Government (16 answers total) 3 users marked this as a favorite
I just heard on the radio that Shell reported a 14% rise in profits over the last year, the largest increase in history for a US company. British gas here in the UK are raising prices by 35% (!), but they are reporting billions of pounds of profit - so much profit that the government are considering a windfall tax for British Gas, but is that something that is going to reduce that 35% increase? How do massive profits + massive price increases NOT equal profiteering?
I am obviously mostly ignorant about economics, but I would like to learn more, so any books/articles that will help me understand this would be appreciated in addition to your explanations