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Double, double oil and trouble.(have you heard?)
The second row of the north parking lot at our Yonkers office is reserved for vehicles we've just tested. As I write, the six small cars you'll read about on page 50 are lined up next to July's crew-cab pickups. Godzilla meets Toro Thumb: At 11 miles per gallon overall, the Dodge Ram 1500 is one of the thirstiest vehicles we've tested. At 33 miles per gallon, the manual-transmission Mazda3 is among the more frugal. For the first time in a decade, we also ran fuel-economy comparisons of manual and automatic versions of each of this month's small cars.
Our interest in fuel economy is longstanding. But we've revved up coverage (see page 48) because of sticker shock at the pump. If today's gas prices reflected a reasonable profit over production costs, we might not complain. But they don't, as Consumer Federation of America and Consumers Union, publisher of CONSUMER REPORTS, reported in May. Among their findings:
* Price hikes were not caused entirely by production cost increases. Indeed, petroleum industry profits have risen to record highs. U.S. oil companies have been swimming in after-tax profits that exceed by $50 billion to $80 billion the profits they enjoyed from 1995 to 1999. They're on track now for another banner year.
* A wave of mergers in the 1990s whittled 34 major oil and gas companies down to 13; 15 refining companies were whittled to 7. This consolidation reduced competition and with ...
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