$4.00 gal?

[bross]

I got so tired of these constant price increases that I went out and bought a bunch of ExxonMobile stock. I figure they got a pretty good thing going here so I might as well join them.

 

[scottydl]

If we could drill for oil in the Anwar provedence and off the coast of Florida, the price would drop over night.

If that is true, then why are fuel prices so high in Canada?  From what I understand, a large portion of U.S. oil is imported from there (not all from the Middle East as much of the population things) but Canada and the U.S. don't seem to benefit from the close proximity of Canadian oil.  Somehow the oil companies still get to charge whatever they want, with impunity. 

 

[blueblood]

If that is true, then why are fuel prices so high in Canada?  From what I understand, a large portion of U.S. oil is imported from there (not all from the Middle East as much of the population things) but Canada and the U.S. don't seem to benefit from the close proximity of Canadian oil.  Somehow the oil companies still get to charge whatever they want, with impunity. 

Because the world demand is at nearly equilibrium with supply; thus any oil coming into market is priced at market.  Demand is forecast to rise. So, price will continue to rise especially since this situation leads to some speculation buying which pushes prices up further e.g. inventories have risen over last month but no one believes demand is going to go down so the price of crude continues to increase. If the supply could be increased then prices would theoretically decrease although given the sheiks oil cartel they would probably reduce output to reestablish equilibrium. We need to find ways to both increase supply and decrease demand to free ourselves from their monopoly power.  Unfortunately a rationale energy plan is blocked by special interest environmental groups on all fronts from coal to nuclear power to ----------. 

 

[Gottasmilealot]

Wait to you see what happens when millions of Chinese start driving like we do in a few years and the world supply has to be split more ways.

Even at current prices, I'm not travelling as I would like, I may end up just flying from PA to FL later this month, it's cheaper.

This has to be hurting the industry overall.

 

[tvfrfireguy]

My neighbor works for an offshore well drilling outfit and is in Egypt.  With out boring you with all the details, I will tell you that you are all correct in assuming you are being taken to the cleaners.  It is open season on the woking guy.  My wife and I were in Yuma and walked across the border into Mexico.  I saw all these drugs for sale and I asked a fellow if he thought they were OK.  I bought 9 Imetrx pills ( for migrain headaches) for twelve dollars.  These same pills at my pharmacy are over $470.00.  The pills I bought in Mexico were made in NewZealand and are more effective.  Our people in Washington tell us they are worried about us getting bad drugs as a excuse for not letting us import them while 47 million people go without any health insurance and over one hundred thousand died last year needlessly because of no health insurance.  And you wonder if the oil companies are on the up and up.  If you get the chance, rent the movie "Who killed the Electric Car".  It is a must see.  Dave

 

[cougar3514v]

This morning there was a picture on the front of the Kingsport Times-News (one of the three tiny little papers available in NE Tennessee) of the fuel prices at a LA service station.  It had regular at $3.93/gal, plus at $3.99/gal, premium at $4.19/gal, and diesel at $3.67/gal.  I was a bit upset because in my area, diesel has been higher than premium for all but a few weeks over the past two years.  I know the pricing formulas are too complicated for a mere mortal such as myself to understand, and I understand about the heating oil and diesel link, but diesel around here has remained more expensive over the summer too when we used to get a break. Is this common across the country or just unique to NE TN?

I guess I should count myself lucky.  We're a 100 miles from most of the Smokey Mountain parks and 350 to 400 miles from most places on the coast from North Carolina down to Savannah. I can usually find something nice to occupy myself for a week in those places.  Heck, I also enjoy just going out to the 5'er for an evening while it's parked beside the house. 

-Dave

 

[blueblood]

This morning there was a picture on the front of the Kingsport Times-News (one of the three tiny little papers available in NE Tennessee) of the fuel prices at a LA service station.  It had regular at $3.93/gal, plus at $3.99/gal, premium at $4.19/gal, and diesel at $3.67/gal.  I was a bit upset because in my area, diesel has been higher than premium for all but a few weeks over the past two years.  I know the pricing formulas are too complicated for a mere mortal such as myself to understand, and I understand about the heating oil and diesel link, but diesel around here has remained more expensive over the summer too when we used to get a break. Is this common across the country or just unique to NE TN?

I guess I should count myself lucky.  We're a 100 miles from most of the Smokey Mountain parks and 350 to 400 miles from most places on the coast from North Carolina down to Savannah. I can usually find something nice to occupy myself for a week in those places.  Heck, I also enjoy just going out to the 5'er for an evening while it's parked beside the house. 

-Dave

There are so many variables it's hard to have a rationale discussion. However, one of the actors is that diesel usage worldwide is increasing as Europe is subsidizing diesel fuel prices to encourage a shift to diesel cars. This increased usage is pushing diesel fuel prices up since its adding to demand. The US will soon see a similar dynamic as sales diesel powered cars will continue to increase especially in 2010 as the new Cummins automotive diesel comes into production. Conversly,  gasoline refined in Europe is therefore available for export to US and this has effect of pushing gas prices down. California, like all ways , is a special case. It must consume what it produces within its borders because it requires special formulations of both gas and diesel fuel; even ULSD is different in California then any other state. This setups a special set of pricing dynamics. 

 

[Mick & Pat]

Hi Guys
I feel your pain at $4 a gallon but what can you do to change it ? demonstrate? or just not buy fuel ? I don't know

but while your hurting spare a thought for us RV owners in the UK recent price increase took gas to ?4.77 a gallon = approx $8.00
does our fuel come out of the same hole in the ground ? maybe
question is where's the money going ? well our illustriuos government takes about 60% of that in tax

We make a lot of noise over here but it soon dies down and were back to normal in a couple of days.... it must be a British thing  :

How about taking a leaf out of the French book of "How to Do Things" they stand for NO messing about be it lamb or beef prices, air traffic control dispute, when they protest THEIR government listen.

 

[freddie]

Funny you should mention the French Mick , Sea France Ferries  Have been on strike this week the M20 has operation stack in force.
For our American cousins this means no Trucks can cross the English Channel via the Ferry service to France.(some 40 crossings a day i believe operate daily ) Within a couple of hours the M20 is stacked with tucks using 2 lanes of a 3 lane motorway for anything up to 20/30miles.
It is the Worlds biggest parking lot for trucks, this has happened at least 9 times in the last 12 months.
It is what the French do when they disagree or dont like the rules.
l

 

[Mick & Pat]

It is the Worlds biggest parking lot for trucks, this has happened at least 9 times in the last 12 months.

It is what the French do when they disagree or dont like the rules.

Freddie, Some say "Actions speak louder than words" and in the case of the French it appears to work.

 

[blueblood]

Freddie, Some say "Actions speak louder than words" and in the case of the French it appears to work.

Only if one defines "work" as a seriously ill economy.

 

[Jim Dick]

The French strikes happened to us when we toured Europe with the Nathans in 2001. We were in Paris and supposed to take the bullet train to England. Found out late in the afternoon the day before we were to leave that the trains were going on strike at 8:00 the next morning. Luckily Terry got us a flight to Heathrow and canceled the train reservations.

 

[PattieAM]

In your post, you felt that the rise in gas prices wouldn't affect you much.....

But it is not just the gasoline for you that will increase, but the costs of goods and services across the board and their increases to the consumer which will hit hard.  Those on a fixed income who see their gas prices increase, utility costs increase as a result, groceries increase will have to hone down their expenses to make ends meet -- so some areas of business/industry will in turn suffer. 

I know that if my utilities increase much more, and my groceries cost more, I will discontinue things like getting nails done, hair done (not that I'm a regular at that).  And, I will most likely discontinue either the cable TV and go back to antennae use - as that $50/month (actually more) could go for more important stuff.

I've been doing financial/budget reviews, and have already increased my insurance deductibles, compared carriers/prices for insurance, as well as reducing whatever expenditures I can (eliminated phone package - back to basic).  To lower electric bills, I've lowered the thermostat in my electric water heater, and am utilizing the clothesline to offset the 220v. dryer expense.  And, I've changed my buying habits - only grocery shop once a month, and limit myself to one trip a week for all other stuff (includes the milk/bread run), with a dollar amount pre-set. 

The various changes I've made are just beginning to trickle down to the checkbook, so I've got several months past of being 'in the hole'.  It will take alot of self control to overcome this.

 

[Ray D]

In your post, you felt that the rise in gas prices wouldn't affect you much.....

Sorry, Patty. I was referring to the effect on our camping. I should have stated that more clearly.

As you are, I am already paying the inflated prices for groceries, goods and services. We are retired and living on a fixed income. Our priorities are that we pay our cost of living, first. What is left over is squandered, for "travel and entertainment." That's pretty much our primary interest.  ;D

We compensate for more expensive fuel by driving less. That means fewer miles (camp closer to home,) and/or more days at each stop. Thus, the gasoline bill is the same as it was, before.

So, in spite of increasing fuel costs, we are still out there, as much as we are physically able to be. And I said, gas prices wouldn't affect us much.

We are blessed to live in an area that is a tourist destination. We are "camping" as soon as we drive out of the driveway and hook up the toad. It's not "how far do we HAVE to go?" But, "How far do we WANT to go?"

Ray D  ;D

 

[jeverden]

Here in British Columbia, fuel is at 1.22 per litre x 3.79 = $4.62 per gallon and we are forcast to have 1.50 per litre this summer x 3.79 = 5.68 per gallon.
We try and RV stateside, as your fuel is much less.  $4.00 a gallon is a deal. 
Right now it is more like $3.00 per gallonin the U.S. +/-

 

[Hfx_Cdn]

Since we ship more crude oil to the States than we keep here for domestic use, I find it difficult to understand why gas and diesel re cheaper south of the border.  Gas is $1.22 a litre ($4.60) a US gallon, and diesel is $1.33/L or over $5.00 per US gallon. 

 

[Jim Godward]

A lot of the difference is taxes.  How much a liter do you pay?  Then check to see what we pay.

 

[Smoky]

I have to chuckle when I remember a couple years ago I said fuel would hit $5 a gallon and practically got ridden out on a rail with tar and feathers.  I think RVers have worked their way out of denial and now are facing reality.  ;D

 

[scottydl]

I have to chuckle when I remember a couple years ago I said fuel would hit $5 a gallon and practically got ridden out on a rail with tar and feathers.  I think RVers have worked their way out of denial and now are facing reality.  ;D

In the post-Sept-11th panic that occurred at many gas stations here in IL, prices "shot" to $1.76/gallon and we were all scrambling to fill up  before they went higher.  Some stations in central IL did skyrocket their prices to $4-5 range, and were later sanctioned for illegal price-gouging and forced to pay it back to anyone who returned with their receipt.  It took 'em 7 years to creep the prices that high again, but now it looks like they will all have us paying that amount regularly and legally. 

 

[JerArdra]

Jeff,

As you said, they just don't work.  Nixon tried some price controls.  All it did was to hold the allowed price level during the controls and then when they ended there was an explosive upward movement of the prices. 

They just don't work except in very special cases such as WWII so black marketeers could not raise the prices on goods that were already in short supply during the war.

Setting prices was a big reason that the U.S.S.R. had both shortages of and poor quality goods.

JerryF