Gas Prices rising...why?

Messages
6,987
Location
Michigan
Oil is half the price it was when oil hit its high. So why is gas already 3/4 as high as it was then? Reg unleaded here is up to $ 2.95 a gallon. What a rip off. I have my guesses: 1. Less competition. We have alot of "Speedway" gas stations. As soon as they all raise their proces other stations raise their price too. 2. So many stations are now stores too that they don't have to get into gas wars with other stations becaue their profit is from the store items.
 
Messages
18,257
Location
Michigan
3 Stations around here are 3.00 bucks already... Get ready for 4 buck gas.....it's going to happen. I don't care what Wall Street says... And kiss new car sales goodbye....
 

Bill in Utah

Staff member
Messages
12,849
Location
UT
Because we "showed" them that we will pay $4 with little problem last year.. We've all got plenty of $$. Since we don't want to do anything about our importing of oil, bring it on!
 
Messages
23,591
Oil is a finite commodity. As such it is ideally kept in short supply to maximize profit and extend the use of the commodity until the supply is exhausted. Besides, the price of crude has doubled since the February, and the dollar has gotten weaker.
 
Messages
275
Location
Californ I/A
The banks got smart, invested in oil and then became speculators, driving up the price and recouping all the money they lost. Also, because us dumb humans just couldn't resist driving our huge SUV's once again after prices dropped down really low. Toyota Prius sales dropped like a lead balloon, cars that one time sold for thousands more than what they were worth are suddenly worthless again... When I bought my diesel TDi last year, it was [censored] near impossible to find and it cost me dearly. Almost a year later, I couldn't sell it if I wanted to!
 
Messages
1,478
Location
Iowa
Believe it or not, gas was under priced (compared to crude oil) last summer when it hit its peak. Looking at this chart, you can see that gas prices tend to track crude oil prices pretty closely, except for last summer. If the cost of crude oil would have actually been passed down to consumers, gas prices should have been around $5.50 rather than $4.00. It's my opinion that political factors came into play to keep gas prices as low as they were last summer. It was an election year and there were already tons of people screaming for the head of "Big Oil". Can you imagine the hue and cry of gas prices were $1.50 higher than they already were? I think gas prices could easily hit $4.00 this summer even if crude oil is only at $90.
 
Messages
6,318
Location
Canton, GA
Because they know they can!!!! I dont think I saw one less vehicle on the road last summer when it was $4.00 a gallon! At least here where I live.
 
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Messages
15,052
Location
Canada
 Originally Posted By: lexus114
Because they know they can!!!! I dont think I saw one less vehicle on the road last summer when it was $4.00 a gallon! At least here where I live.
+1
 
Messages
6,784
Location
Huntington Beach, CA
Wednesday, June 11, 2008 Barack Obama: I think that... we have been slow to move in a better direction when it comes to energy usage. And the president, frankly, hasn't had an energy policy.* And as a consequence we've been consuming energy as if it's infinite. We now know that our demand is badly outstripping supply with China and India growing as rapidly as they are. CNBC's John Harwood: So could the (high) oil prices help us? Barack Obama: I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money in their pockets, but also by encouraging the market to adapt to these new circumstances more rapidly, particularly U.S. automakers... For the "plan" to work, GM and Chrysler must make fuel efficient autos that the BO administration and it's followers want. In order for them to sell they MUST have high gasoline prices, otherwise buyers will spend their money on other brands...including Ford. In order for GM and Chrysler to succeed the administration will bring down Ford, so that all the automakers are on the same page. Also more wealth transfers as the wage earners and above pay more for fuel and fuel taxes. Also oil and energy companies will be taxed heavily...more income redistribution as that money is given to those who BO feels have been treated unfairly and don't have what others have. It is not about right or smarts. It is about perceived fairness. If you have made more, have better insurance, more home equity on and on then a group Barry O backs, he will make sure it will be taken from you. Middle class on up are going to be screwed so Barry O can spread YOUR wealth to whom he chooses..It will not be most of us hard working tax payers. When the cap and trade takes effect, forget about all energy costs...unless you are one of Barry O's favorites which of course will get subsidized, fuels, electricity, healthcare on and on.....until the golden goose is broke..then all bets are off for most of us... But that is the end plan..the destruction of the USA as we know it. Depending on your political outlook, that is either a good or bad thing.......
 
Messages
313
Location
Lugoff, SC
Time to revive the EV and drop some cash on a few solar panels. Well, and get a job that doesn't require 200 miles of driving a day.
 
Messages
2,081
Location
Los Angeles, California
The highest price in my neighbor hood is Shell gas and it's currently $3.69/gallon/regular!!!! What a rip off. I don't even want to try that fancy nitrogen gas their trying to sell to people. For that kind of money I'd rather use Arco and put in a bottle of Techron. Durango
 
Messages
1,183
Location
Canada
 Originally Posted By: Durango
The highest price in my neighbor hood is Shell gas and it's currently $3.69/gallon/regular!!!! What a rip off. I don't even want to try that fancy nitrogen gas their trying to sell to people. For that kind of money I'd rather use Arco and put in a bottle of Techron. Durango
I think CA has pretty high state gas taxes correct? Yeah that is a joke that price, it is probably a combination of taxes and a large dose of "what the market will bear" going on as well.
 
Messages
1,626
Location
usa
high gas prices assisted to the financial woes . Many people charged up their credit cards to fill those gas tanks . Seen it with a few relatives who can't handle money for nothing and are up to their necks with late fees and higher interest rates . They've even had to borrow money to get gas so could get to work until they got paid . Never paid the money back and still have the nerve to ask for more only to get shot down due to not trying to pay back the other money they were lent . The CHINA syndrome ( growing vehicle ownership and industry ) is also part of the equation . Better hope for a mild hurricane season as well . These prices will only set this economy back further . We all need to apply ourselves to better driving habits to help with our recovery . Can't pin it all on government administrations ( past and present ) and corporations . All starts with each individual whose actions help fuel greed and economic strife for all . Why they haven't passed national speed limit of 55 is beyond me . This will become a far greater crisis than the late 70's . Guess we'll never learn from the past .
 
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Messages
25,041
Location
ON, Canada eh?
 Originally Posted By: ZZman
Oil is half the price it was when oil hit its high. So why is gas already 3/4 as high as it was then? Reg unleaded here is up to $ 2.95 a gallon. What a rip off. I have my guesses: 1. Less competition. We have alot of "Speedway" gas stations. As soon as they all raise their proces other stations raise their price too. 2. So many stations are now stores too that they don't have to get into gas wars with other stations becaue their profit is from the store items.
The answer is simple... "BECAUSE THEY CAN, SO THEY DO!" \:\!
 
Messages
1,626
Location
usa
forgot about high costs of heating your home as well . So , the double whammy on expenses . Haven't paid over $3 a gallon for heating oil as of yet . Try to time it for better prices by watching CNBC , BLOOMBERG , and other sources . Early spring seems to be right moment to get tank filled if I remember correctly .
 
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