Gasoline Prices

[eljefino]

So what if china is belching CO2 from their factories? The world demands shiny new stuff. It doesn't matter where it's made, the results wind up in the air.

I've heard "refinery maintenance" used as the excuse. #2 home heating oil has held steady in price. But it was warmer by 7 degrees on average around here for February. But colder in the mid-atlantic. But they run piped gas more down south.

 

[Bluestream]

Originally Posted By: Bill in Utah
Originally Posted By: Bluestream
That is the answer, its supply and demand in it's most basic form.


If it was that simple. The major problem is someone is causing the price to be higher by getting in the way of providing the supply.

And then taking off the top excess amounts of undeserved $$.



I disagree. In a free market a seller can sell his goods, or hold on for a higher price. He is not forced to sell if he does not want to. AS the price rises, the supply begins to flow. It's as simple as the supply/demand chart from economics 102

 

[ToyotaNSaturn]

Originally Posted By: Bluestream
Originally Posted By: Bill in Utah
Originally Posted By: Bluestream
That is the answer, its supply and demand in it's most basic form.


If it was that simple. The major problem is someone is causing the price to be higher by getting in the way of providing the supply.

And then taking off the top excess amounts of undeserved $$.



I disagree. In a free market a seller can sell his goods, or hold on for a higher price. He is not forced to sell if he does not want to. AS the price rises, the supply begins to flow. It's as simple as the supply/demand chart from economics 102


That's all well and fine. But the devaluation of the dollar is starting to ramp up now, it must be part of the equation.

It's going to *hurt* everyone, but the poor especially.

 

[labman]

There are temporary distortions. Much of the trouble 2 years ago could be traced to some of George Soros's speculation in the oil market. What should have been a hiccup turned into a big mess because too many people were too over extended to survive $4/gallon gas long. Buy a 3500 sqft house 50 miles out of town on an ARM, a couple of trucks to drive back and forth to work, and max out all your cards. Then gas goes up....

Wish I had a link to the George Soros story.

 

[Schmoe]

2.69 here. I don't think "they" will let it get past 3.50 based on what happened to the economy the last time that happened. Another problem is lack of competition. Notice how the big oil companies just about bought out everybody else?

 

[TurboLuver]

Originally Posted By: labman
There are temporary distortions. Much of the trouble 2 years ago could be traced to some of George Soros's speculation in the oil market. What should have been a hiccup turned into a big mess because too many people were too over extended to survive $4/gallon gas long. Buy a 3500 sqft house 50 miles out of town on an ARM, a couple of trucks to drive back and forth to work, and max out all your cards. Then gas goes up....

Wish I had a link to the George Soros story.



Excellent point.



Originally Posted By: Schmoe
Another problem is lack of competition. Notice how the big oil companies just about bought out everybody else?


Another good point.When you add collusion to the mix the supply and demand argument simply falls apart.

 

[benjamming]

Originally Posted By: tpitcher
High gas prices are bunk.

WHY would they go "much higher"? Sure demand will go up and the price will go up some....

BUT "way" up? That is foul! It ain't costing them that much more to get it to us!!



Prices aren't set based upon costs but rather what they can charge.

 

[ddrumman2004]

Gasoline is/was 2.69.9 for a gallon here. Haven't been out today so it may be more.

What gets me is that at one station last Saturday, the price was 2.68 a gallon but in the course of a couple of hours, rose one penny to 2.69.

I guess the price went up on what was in the tanks.

 

[Pop_Rivit]

It was $2.57 here last weekend. I personally don't care how high it goes-most of what I do is done right from home. It's very rare that I have to put more than $20 a week in the tank, so even if it doubles I can reduce my driving even further by doing even more work remotely.

I've been kicking around picking up a used older pickup to do some landscaping projects with over the next couple years. Full size 4X4 pickups are already pretty cheap, but if gas prices go up even further the price will come down even more. I might be able to get a pretty good deal on an older gas hog.

 

[IndyIan]

Originally Posted By: Bill in Utah
Originally Posted By: dime
gas will steadily increase in price as our economy gets better,i expect to see $4/gal once we're close to "normal" again.


*If* $4 gallon fuel is "normal" then we are in MAJOR trouble for the US Dollar and our survival.

It will be curtains for us for the most part.

I really feel sorry for our Kids and Grand Kids. They did nothing for this lack of future.

$3.50 a gallon is about what we pay now and its not the end of the world... Our "fleet" averages 30 mpg and when both of us are working we might do 80 miles combined for commuting, so its roughly $10/day on gas x 220 days = $2200 per year. Gas going up more and spending $3000/year for commuting wouldn't be great but not a deal breaker for us.
Transportation costs for food and goods will go up but I think it will help many local economies, if all the khrap grown and made in China costs 10% more it would be good for N. america IMHO.

 

[eljefino]

Originally Posted By: Bill in Utah
Originally Posted By: Bluestream
That is the answer, its supply and demand in it's most basic form.


If it was that simple. The major problem is someone is causing the price to be higher by getting in the way of providing the supply.

And then taking off the top excess amounts of undeserved $$.



I'm confused... in one post you're worried about your grandkids being in trouble but in this one you want to drill everywhere all at once?

 

[msparks]

Originally Posted By: ToyotaNSaturn
Can't find the link off hand...a guy wrote an article recently showing how energy prices would be the first thing to noticeably go up due to the devaluation of the US dollar.

And this is only the beginning of the pain.


Price it in silver or gold, and gas is still cheap. As long as your income keeps up with the prices all is good. When things go hyper, it will be harder to keep up. But we will have a new currency by then, we hope.

 

[benjamming]

Originally Posted By: msparks
But we will have a new currency by then, we hope.


I can't really say that I hope for that...

 

[rshaw125]

We are driving more. USA Today article we drove more miles in 2009 than 2008. 2010 is predicted to be increasing again. $3.25+ a gallon.

 

[addyguy]

About $3.60-3.75 a gallon here in Ottawa ($0.96-0.99/litre).

I don't think there is enough 'recovery' to justify these prices. If this driving season is a 'bust', price will go down by the fall.

 

[NJC]

Originally Posted By: addyguy
About $3.60-3.75 a gallon here in Ottawa ($0.96-0.99/litre).

We have a carbon tax and transit taxes tacked on, but I wonder if that is the only difference between our prices. Average price in my area (greater Vancouver) seems to be ~$.14L MORE, at about $1.13L.

 

[Pesca]

Same here (and I am closer to addyguy, just two hours drive), and they want to implement a 2 cents/liter taxes to pay for better public transportation.
Closer you get to Ontario or the US, cheaper it is.

Few months ago, we were around $1/l but now, we don't go below $1.04 and up to $1.14 (every week at about the same time of the week).

We will probably go up to $1.25-1.3 this summer (we went up to $1.5 in summer 2008).

 

[CivicFan]

Canadians, stop complaining. At least you have public transportation. Most of us in the US (people living outside major urban centers) are completely reliant on personal vehicles to move around.

 

[rshaw125]

Originally Posted By: CivicFan
Canadians, stop complaining. At least you have public transportation. Most of us in the US (people living outside major urban centers) are completely reliant on personal vehicles to move around.


So are the Canadian's. Their public transportation is in the populated areas. It makes zero sense to have large amounts of public transportation out in the sticks.

 

[Bluestream]

I think Gas is cheap right now. I am using as much as I can before it gets really costly. I spent $750 on gas for snowmobiles this winter. I figure in a few years I won't be able to afford that any more. Go ahead, drive, fly, boat as much as you can while you can still afford to do so...