Ready for $4.00 gasoline?

[bat1]

NEW YORK -- Gasoline prices were poised Monday to set a new record at the pump, having surged to within half a cent of their record high of $3.227 a gallon. Oil prices, meanwhile, surged to $107, a new inflation-adjusted record and their fifth new high in the last six sessions on an upbeat report on wholesale inventories.


The national average price of a gallon of gas rose 0.7 cent overnight to $3.222 a gallon, 69 cents higher than one year ago, according to AAA and the Oil Price Information Service. Last May, prices peaked at $3.227 as surging demand and a string of refinery outages raised concerns about supplies.

That record will likely be left in the dust soon as gas prices accelerate toward levels that could approach $4 a gallon, though most analysts believe prices will peak below that psychologically significant mark. In its last forecast, released last month, the Energy Department said prices will likely peak around $3.40 a gallon this spring; a new forecast is due Tuesday.

Retail gas prices are following crude oil, jumped 24 percent in a month on its way to setting new inflation-adjusted records four times last week. On Monday, crude prices surged to yet another record after the Commerce Department said wholesale sales jumped by 2.7 percent in January, their biggest increase in four years, according to Dow Jones Newswires.

[KalisaD]

haha... its already in the $3.90s/gal in some places in downtown san francisco

[thx1138]

what's truly scary about this is independant truckers are really hurting over the pump price. If they go out of business the amounts of food and other goods coming into large metropolitan areas are going to DECREASE raising the spectre of food riots and famine. Eventually cannibalism might be necessary for some to survive. Children and older folks will be the first to "disappear".

[ILuvGurls]

what's truly scary about this is independant truckers are really hurting over the pump price. If they go out of business the amounts of food and other goods coming into large metropolitan areas are going to DECREASE raising the spectre of food riots and famine. Eventually cannibalism might be necessary for some to survive. Children and older folks will be the first to "disappear".

get the fuck out of here.....we are a loooooong ways from this happening.

[Nowhere]

What's sad is that people aren't doing a single thing to force change on the oil companies who are LAUGHING at us all the way to the bank. The government even had those "mock" (oh they were real and did something to them at all, right!!!) hearings at them last year. People have no concept in the difference between seeing a parade in front of us on TV and something actually being done.

That being said, I expect to see gas to get to $6/gallon during Hillary or McCain's presidency (they're pretty much the same candidates and both stand for zero economic change). Maybe even as high as $8/gallon.

We ain't seen NOTHING yet...

[Oli]

What's sad is that people aren't doing a single thing to force change on the oil companies who are LAUGHING at us all the way to the bank. The government even had those "mock" (oh they were real and did something to them at all, right!!!) hearings at them last year.

Why force the oil companies change? Should we suspend the basic economic laws of supply and demand so people can keep driving Escalades, Hummers and Navigators? Buy stock in Oil and make some money.

Crude costs the oil companies $2.55/gal before processing. Add $.46 in gasoline taxes. So all the shipping, storing, processing, transporting and retailing adds about 9% to your gas prices (at current levels). Wow, we really ought to do something about the unreasonable profit margin of the oil industry.

The weakness of the dollar isn't helping either.

[trish]

What's sad is that people aren't doing a single thing to force change on the oil companies who are LAUGHING at us all the way to the bank. The government even had those "mock" (oh they were real and did something to them at all, right!!!) hearings at them last year.

Why force the oil companies change? Should we suspend the basic economic laws of supply and demand so people can keep driving Escalades, Hummers and Navigators? Buy stock in Oil and make some money.

Crude costs the oil companies $2.55/gal before processing. So all the shipping, storing, processing, transporting and retailing adds about 26% to your gas prices (at current levels).

The weakness of the dollar isn't helping either.

I see your point Oli, but it is also the case that oil companies are making record profits. Profits are what's left of the revenue after the costs are subtracted out. So it's not really about costs, it's about exploiting demand to maximize profits. Why should we interfere with this time honored tradition of price gouging? Because the term "demand" is a misnomer. As used in economics it's a relative term. It's means the number of people who are still willing to buy an item when the price is set at p dollars...as if all those who can't afford it at this price are no longer demanding it. Supply almost never satisfies demand...for that to happen one has to redefine the term demand, which is exactly what economists have done to make the "law" work.

(edited for grammar)

[Oli]

Hey Trish you little minx, I was editing my post to include the federal gas tax to the total, lowering the percentage mark up vis total cost per gallon.

See, I don't believe that there is any gouging happening. People drive a car that gets 12-15 mpg because it 'projects the image' they have of themselves, move to a 4500 sq. ft. house that uses twice the energy to heat and cool as their old house, in a subdivision 45 miles from their job, and commute alone, then have the audacity to bitch about gas prices. I have no sympathy for them.

Crude has finally passed the historic (inflation adjusted) high from 1980. We are reaping what our wants and desires have sown. To blame an industry because we can't control ourselves, even if their profits are massive, is wrong.

[bobteagle]

Think yourselves lucky. Over here in London we pay $2.50 a litre!

[Riddler]

oh boy, time for bike

[trish]

I live in the rural Midwest. People here grew up and took jobs in the local factories which then shut down and moved to Mexico. So now these people either have to pick up and move or commute an hour to work. These people drive old beaters which they foolishly bought when gas was still cheap. They can’t afford to buy Priuses. They certainly cannot afford the prices for gasoline and heating oil the more well off are willing to play. Even though they need gasoline, once the price goes above what they’re willing to buy, they’re no longer considered part of demand. I agree. The people who have money to throw away shouldn’t complain when they drive up the price on the people who don’t. But it’s still gouging. There’s plenty of blame to go around.

[Quinn]

Oli, stop expecting people to be, in any way, responsible for their actions. Shame on you. Don't you know that everything is someone else's fault and that people can never be anything other than perpetual victims doomed to continually elect the very same type of candidates who turned them into viticms to begin with.

-Quinn

[trish]

people ARE responsible for their actions. just remember that INCLUDES CEO's as well as the rest of us.

[ottorocket]

I just bought a 15mpg SUV...and i really could care less if it went up to $5 a gallon. I see enough people driving so wastefully, speeding light to light...then bitching why they are paying so much at the pump. Lucky for me i can commute on a motorcycle and save the SUV for my trips to Tahoe.

[bobteagle]

When I filled up yesterday it was $10 a gallon in London and due to rise even more.

[Grahame]

What are you all complaining about in America?

Talking in Euros, you pay the equivalent of €0.55 per litre.. here in Greece I'm paying €1.30 per litre, that is 2 1/4 times as much as you.

Try driving more economical vehicles!!

G 8)

[canvor]

c'mon guys - in germany you pay approx. $8.20 US per gallon.
and it can get a lot worse!

[Marinus]

What are you all complaining about in America?

Talking in Euros, you pay the equivalent of €0.55 per litre.. here in Greece I'm paying €1.30 per litre, that is 2 1/4 times as much as you.

Try driving more economical vehicles!!

G 8)Cheap!

I have to pay €1,459 per litre (which is 8 cents cheaper than average) = ± 8.48 US Dollar per gallon

And still no cannibalism around here ......

[justatransgirl]

Yes, I see $4 gas by the end of the month, and possibly $5 by the end of the year. Even though people in other countries do pay far more, the effect here in the US could be devastating to the world economy when US consumers pull back spending to pay for gas.

I have three comments:

1) They have had since the 1973 gas crisis to do something about it and the govt and business has fiddled while Rome burns down around them. We have had 35 years to convert to alternative fuel sources. By now the entire country should be nuclear and solar powered. Hydrogen fuel cell and high tech batteries should be the norm.

2) I think the US should nationalize the oil companies, return the outlandish profits to the people and stop the federal and state taxation of gas - which ads between 30 and 50 cents to each gallon. I think we should have a national oil company with the prices fixed to a non-profit status. Oil is a natural resource of the planet, like sunlight or air. It belongs to all the people, and a select few should not be allowed to exploit the rest of us. This goes for the oil producing countries too.

3) Something nobody thinks about - the US gets about 15% of our fuel from Venezuela. That crackpot Chavez could very easily enact a short term embargo on the US and throw our economy into chaos. Even a one or two week disruption would return us to the nightmare of the 1970's that would take months if not years to recover from.

And the dumb ass government is more concerned who Todd Spitzer sleeps with - and with who you and I sleep with and for how much and they fail to take care of the really important things.

I give up.
TS Jamie :-)

[dbev]

€1.41 per liter, that means USD2.194 per liter.

Imperial system is illegal and illogical, but this also means USD8.30 per US gallon of gasoline.

€1.36 per liter of diesel = USD2.12 per liter

[thx1138]

Chavez cannot stop sending his petroleum to the US (at least not for very long) because his refineries(Citgo) are in Texas. Part of the refined products are shipped back to Venezuela for local use. So if he embargoes the US he embargoes his own country. Not a good idea.

[thx1138]

Independent truckers under extreme financial pressure because of the escalting price of gasoline: http://www.msnbc.msn.com/id/23436726/

[thx1138]

oops. escalting = escalating

[thefrakkincaptain]

Does anyone know how much the Chinese are paying? My only consolation in this whole crisis is knowing that they're getting hit just as hard as we are--and don't have as much money to pay for it.

[justatransgirl]

Independent truckers under extreme financial pressure because of the escalting price of gasoline: http://www.msnbc.msn.com/id/23436726/

Yeah, everytime I think of becoming a truck driver this happens. The truckers get screwed, many go bankrupt, eventually their price increases filter down to the rest of us and the price of everything goes up. But a good "bunk bunny" can make more than a trucker anyway...

And I love a man with a stiff stick shift.

Giggle,
TS Jamie :-)

[Oli]

This is about 9 months old, but the best I could find

http://www.theoildrum.com/files/GasPrices.png

[dbev]

Reduce consumption:

http://www.fueleconomy.gov/feg/byfueltype.htm

http://www.fueleconomy.gov/feg/byMPG.htm

http://www.fueleconomy.gov/feg/bestworst.shtml

http://www.fueleconomy.gov/feg/hybrid_sbs.shtml

Or use Public Transportation

Buses/Choaches

http://en.wikipedia.org/wiki/Bus

Trams

http://en.wikipedia.org/wiki/Tram

Trolleybuses

http://en.wikipedia.org/wiki/Trolleybus

[CORVETTEDUDE]

Think yourselves lucky. Over here in London we pay $2.50 a litre!

Yes, your fuel expense is high. However, you have a far superior public transportation system than we do in the States.

[CORVETTEDUDE]

Independent truckers under extreme financial pressure because of the escalting price of gasoline: http://www.msnbc.msn.com/id/23436726/

Yeah, everytime I think of becoming a truck driver this happens. The truckers get screwed, many go bankrupt, eventually their price increases filter down to the rest of us and the price of everything goes up. But a good "bunk bunny" can make more than a trucker anyway...

And I love a man with a stiff stick shift.

Giggle,
TS Jamie :-)


Jamie....

As always, I'll be your Huckleberry!!!

Dude

[Idontknow]

Think yourselves lucky. Over here in London we pay $2.50 a litre!

Yes, your fuel expense is high. However, you have a far superior public transportation system than we do in the States.

Good point but consider what Joseph Stiglitz, nobel prize winner and former president of the world bank is writing:

"Los Angeles once had the longest municipal railway system worldwide (with over 1.200 miles) as a consortium under the administration of General Motors bought the whole system, disassembled it and replaced it with GM buses."

Please excuse any faults as this is a re-translation from German to English...

Actually the demand for oil is artificially created in a certain way. Cars could use less gas but there was no need for that in the United States for years. Because the oil industry wanted to sell a product - gas. And the car industry was just a willing partner in an evil game.

[trish]

Now that you bring it up, here's two unrelated questions:

1) why is diesel more expensive in the U.S. than regular gasoline? (it used to be cheaper and i thought it took less effort to refine diesel).

2) how many of the European public transportation systems (buses, subways and trains) privately owned? (here in the U.S. where there's great pressure for creating market solutions to serve public needs we don't have much in the way of public transportation. We can't even get gray-hound buses to network rural towns. The one great transportation success we can brag on is the largely government conceived, run and owned system of state and federal highways.)

[Idontknow]

I would say there is no economical reason why diesel should be more expensive than normal gas. There could only be a ecological reason because the diesel pollution is far more dangerous. But this is not counting any more due to the advanced particulate filter technology. Actually diesel was always cheaper than normal gas in Europe but nowadays it's only a few cents difference.
As far as I know most of the public transport systems in Europe are state- or city-owned. That is a good point. So they don't have to work as efficiently as a private-owned business.
But actually this is a key question about the duties of a state and politics. Do you prefer a free-market system, the ideas of John Maynard Keynes, a communist system or something in-between.

[smoof]

makes me glad the company i work for gave me a gas card so i dont have to worry about it :D

[dbev]

Public transportation needs to be public, because private company want to earn huge amount of money out of their business, while the State or the region or the local authorities can and should run it simply breaking even or slightly loosing money because it's a public service.

And this is the best service in the world:

http://www.bahn.de/p/view/index.shtml

http://en.wikipedia.org/wiki/Deutsche_Bahn

Wherever privatisation was held, USA, UK, Italy, it only brought a reduction and worsening of service for daily commuters and an increase in ticket prices.

[doasuwill]

Bought my mountain bike for forty bucks last summer, still had the nobs on the tires. Old Man across the street said he only used it three times. Looking like a steal now.

[bat1]

Anyone gone shopping lately?

Food prices are also going though the roof!

[muhmuh]

Anyone gone shopping lately?

Food prices are also going though the roof!

im sure mike will be able to help us all out with some nice recepies for human meat

[tstv_lover]

Yes, I see $4 gas by the end of the month, and possibly $5 by the end of the year. Even though people in other countries do pay far more, the effect here in the US could be devastating to the world economy when US consumers pull back spending to pay for gas.

Not everyone is suffering - Exxon Mobil just made the largest profit of any company in the history of the world. http://www.nytimes.com/2008/02/01/business/01cnd-exxon.html?_r=1&oref=slogin

Is there any way to penalize the anti-competitive behaviour that ensures we all suffer while oil companies reap obscene profits?

[justatransgirl]

Is there any way to penalize the anti-competitive behaviour that ensures we all suffer while oil companies reap obscene profits?

Yeah - sieze their assets and nationalize the oil companies. And take the oil away from the arabs.

The oil belongs to everyone - they should get a fair price to locate, transport and refine it - but billions and billions in profits to the detriment of the world economy is wrong and allowing a few countries to hold the world hostage is also wrong.

Ok, so I'm a Pinko Commie Fag...

Whadda I know, I'm a hooker,
TS Jamie :-)

[chanel_girly]

gas is 3.99 by my parents house
the nerve shell has!!!!!!!!!!!!!!!!!!!!!!!!!

[the_corner]

I would estimate here is around 7.08 USD per gallon ... (around 1.87 USD for the liter)...

[will802]

yeah it sucks, but at least here my local grocery store offers a deal where for every $50 spent on groceries you get 10 cents off per/g at the pump