Gas Prices

GoMeanGreen1999 · April 4, 2008

Everytime I go to fill up I just chuckle at how much it costs me to fill up my "economy" car. Today I went to put gas in and the station out by my house was $3.30. Luckily QT was at $3.24. I am sure we will hit at least $3.50 now - I didn't figure we would, but I am not sure we can avoid it now after this story:

http://www.msnbc.msn.com/id/12400801

Green Mean · April 4, 2008

Everytime I go to fill up I just chuckle at how much it costs me to fill up my "economy" car. Today I went to put gas in and the station out by my house was $3.30. Luckily QT was at $3.24. I am sure we will hit at least $3.50 now - I didn't figure we would, but I am not sure we can avoid it now after this story:
http://www.msnbc.msn.com/id/12400801

In other news, gas prices all over the Middle East is estimated at $.70 per gallon.

FirefightnRick · April 4, 2008

I heard an interesting report yesterday that stated that the comparison of the price of fuel to average income today is similar to what it was back in the 80's? Even though we are paying more for fuel today, we also make more than we did. Not sure if it's true or not. Anyone hear this as well?

Rick

meangreenacct · April 4, 2008

I heard an interesting report yesterday that stated that the comparison of the price of fuel to average income today is similar to what it was back in the 80's? Even though we are paying more for fuel today, we also make more than we did. Not sure if it's true or not. Anyone hear this as well?
Rick

Rick,

I would believe that. However, using average income is a bit misleading. Kind of like when Bill Gates is in a room with 30 people, the average wealth of each person may be a billion dollars. I think a more comparable stat would be based on median income, which I doubt the median income has kept up with gas prices.

Green Mean · April 7, 2008

Rick,
I would believe that. However, using average income is a bit misleading. Kind of like when Bill Gates is in a room with 30 people, the average wealth of each person may be a billion dollars. I think a more comparable stat would be based on median income, which I doubt the median income has kept up with gas prices.

Oh man that is awesome!! When I took statistics class in college my teacher always used that same example about Bill Gates!! You are so correct by the way.

greenminer · April 7, 2008

Oh man that is awesome!! When I took statistics class in college my teacher always used that same example about Bill Gates!! You are so correct by the way.

I believe I read somewhere that a great portion of the world's money/wealth (over 50%?) is held by the top 10% richest people.

Edited April 7, 2008 by greenminer

KingDL1 · April 7, 2008

Oh man that is awesome!! When I took statistics class in college my teacher always used that same example about Bill Gates!! You are so correct by the way.

Except in any respectable stats model you throw out any extremes high and low, so Gates would not be included.

Coffee and TV · April 7, 2008

If all goes well I will be moving come July for a new job, and I'm looking hard to get into a nearby neighborhood. Its slightly out of my range, but we're budgeting to see if I can find a place there.

Charlie NT 73 · April 7, 2008

I am in the freight transportation business, so I deal with trucking companies

everyday. Currently, diesel fuel is at or over $4.00 per gallon. The big trucks

average about 5 miles per gallon, so the fuel cost runs 80 cents or more per

mile. Each tank on a big rig holds 250 gallons of diesel, so 250 x 2 tanks =

500 gallons x $4.00 per gallon = $2000.00 to fill up. In many states, the truck

is required to buy fuel regardless if the truck is just passing through the state.

Trucking companies are required to pay fuel taxes to a state, even if the trucking

company does not run through the state. These state fuel taxes are increasing

also. What all this boils down to, is many independent truckers, as well as full

trucking companies are parking their trucks, or droping service to certain market

areas, because these companies cannot afford fuel. All carriers, are demanding

a "fuel surcharge" for every shipment. The fuel surcharge runs 35 to 45% of the

shipment or as much as 50 cents or more per mile.

The high cost of diesel will be passed on to the consumer. Look for retail pricing

on goods to increase weekly. Have you bought groceries lately? Geez! The retail

price on groceries increases every week!

Side note- I have friends in El Paso, Brownsville, McAllen- they go across into

Mexico for regular gasoline. About $2.20 per gallon.

LongJim · April 7, 2008

You may or may not agree with him, but here's what Ed Wallace says about the 'gas shortage':

There is no gas shortage.

adman · April 7, 2008

You may or may not agree with him, but here's what Ed Wallace says about the 'gas shortage':
There is no gas shortage.

Analysts say refiners have cut back on gasoline production due to low profit margins; the rising price of crude means it costs them more to refine gas.

not sure how that works? Seems to me if the price of crude is costing you, let's say, 12 cents a gallon more to produce gasoline you pass that 12 cents along to the consumer. There's no loss of margin there.

What really gets me is that last year they were saying that refineries were working at capacity and demand was outstripping them hence the high prices. . A year later they are saying that they are cutting production due to low profit margins - hence the high prices? Doesn't jive. They are talking out of both sides of their mouths.

GoMeanGreen1999 · April 7, 2008

Analysts say refiners have cut back on gasoline production due to low profit margins; the rising price of crude means it costs them more to refine gas.
not sure how that works? Seems to me if the price of crude is costing you, let's say, 12 cents a gallon more to produce gasoline you pass that 12 cents along to the consumer. There's no loss of margin there.
What really gets me is that last year they were saying that refineries were working at capacity and demand was outstripping them hence the high prices. . A year later they are saying that they are cutting production due to low profit margins - hence the high prices? Doesn't jive. They are talking out of both sides of their mouths.

Every year it is a new excuse as to why they charge us more. Three years ago it was Katrina, then it was the cost of oil, then the refinery excuse, how this. Next year it will be something different. I just wonder what the breaking point is - how high is it going to go?

forevereagle · April 7, 2008

They are talking out of both sides of their mouths.

I am not sure it is their mouth that they are talking out of.

KingDL1 · April 7, 2008

Every year it is a new excuse as to why they charge us more. Three years ago it was Katrina, then it was the cost of oil, then the refinery excuse, how this. Next year it will be something different. I just wonder what the breaking point is - how high is it going to go?

Plain and simple there were no new refineries built USA for over 25 years thanks to the EPA & Tree huggers, so the existing refineries are producing at capacity and it is a sellers market. Then add the 30 to 50 cents a gallon extra for the crappy ethanol, and finally Federal and state tax.

Censored by Laurie · April 7, 2008

Plain and simple there were no new refineries built USA for over 25 years thanks to the EPA & Tree huggers, so the existing refineries are producing at capacity and it is a sellers market. Then add the 30 to 50 cents a gallon extra for the crappy ethanol, and finally Federal and state tax.

There would be no need for more refineries if our government, gas companies, automakers and general public would insist upon utilizing more practical and environmentally friendly energy sources...and no...not E85...thats just a big fuck you to us "tree-huggers" when its attempted to be marketed as "green energy." Nobody likes you Iowa.

The biggest unknown factor driving up gas prices are hedge fund speculation...which is thought to be able to add about 20% to gas prices...without speculative trading, based on that figure, your $3.50 gallon of gas is running you $2.80...which, somehow, is a more appealing price.

It'll be a much better place when water and the sun power our cars

LongJim · April 7, 2008

The biggest unknown factor driving up gas prices are hedge fund speculation...which is thought to be able to add about 20% to gas prices...

Bingo.

adman · April 7, 2008

Plain and simple there were no new refineries built USA for over 25 years thanks to the EPA & Tree huggers, so the existing refineries are producing at capacity and it is a sellers market. Then add the 30 to 50 cents a gallon extra for the crappy ethanol, and finally Federal and state tax.

That's not the case at all. US refineries aren't running at capacity. They are actually reducing production.

KingDL1 · April 7, 2008

Except cars are not a big violator in the whole green house gas problem

Cattle produce more global warming gases than cars

Now they are looking into Cow Belching, and they think there impact could double.

Swedish to study belching cows

Just thank God that the for the Buffalo hunters or we would all be under water by now.

KingDL1 · April 7, 2008

That's not the case at all. US refineries aren't running at capacity. They are actually reducing production.

They have been running at or near, and have just now slowed a little. Regardless they have a sellers market right now and more refineries would produce more competition in price.

runt96 · April 8, 2008

They have been running at or near, and have just now slowed a little. Regardless they have a sellers market right now and more refineries would produce more competition in price.

And the seller's market just can't quite get folks, like myself, out of our 17mpg GMCs and into a more efficient vehicle (and i drive at least 28k miles a year). I could afford to eat some of those flatuating cows if id just go to an econo-box. Pardon me as i now suffocate myself with a pillow.

UNTflyer · April 8, 2008

I heard an interesting report yesterday that stated that the comparison of the price of fuel to average income today is similar to what it was back in the 80's? Even though we are paying more for fuel today, we also make more than we did. Not sure if it's true or not. Anyone hear this as well?

We have just in the past few weeks reached the inflation-adjusted high that was set back during the late 1970s OPEC crisis.

But if you think gas is expensive now, wait until it's made with ethanol.

UNTflyer · April 8, 2008

That's not the case at all. US refineries aren't running at capacity. They are actually reducing production.

But not for no reason.

Spring-time is when refineries shut down to do planned maintenance. Other refineries are running at lower capacity due to fires. Others are switching over to summer blends, mandated by the federal government.

http://money.cnn.com/news/newsfeeds/articl...19_FORTUNE5.htm

FirefightnRick · April 8, 2008

And the seller's market just can't quite get folks, like myself, out of our 17mpg GMCs and into a more efficient vehicle (and i drive at least 28k miles a year). I could afford to eat some of those flatuating cows if id just go to an econo-box. Pardon me as i now suffocate myself with a pillow.

It's hard to eat being dead from getting run over on the road by one of those 17mpg GMC's? Make all vehicles on the road comparable to size and weight then I'll be right there with everyone driving a prius. But until that happens it aint worth giving up the safety value of my 18 mpg, crash-test leading, 7200lb F150.

Rick

UNTflyer · April 8, 2008

I've become a regular on the DCTA commuter bus. As a transportation-fee paying student, I get to ride using my student ID. Saves me about $120 a week in gas.