Will gas go to $4.00 a gallon?

[sun]

Do you think it will get that high? I do....The summer driving season hasn't started and it is almost 3.00 everywhere. some more, some a little less..What can be done? In the 70s there were long lines for gas,,,let us hope that that scene does not return..It was awful...Stuart

[Moto Pete]

Do you think it will get that high? I do....The summer driving season hasn't started and it is almost 3.00 everywhere. some more, some a little less..What can be done? In the 70s there were long lines for gas,,,let us hope that that scene does not return..It was awful...Stuart

HERE IN NEW JERSEY YES IT WILL BY JULY 4TH

IN BROOKLYN ALREADY HAS IT AT $ 4.50

[Stewie]

I was wondering when someone would get around to starting another "high gas prices" thread. I don't hear much talk about it, on the news or the street (that's right, the street). It's as though people don't notice it now, but last summer/fall it was all anybody talked about.

When it costs $30 to fill up a tiny Chevy Prism, gas costs too much.
I swear, if CTA raises their rates again, I'm going to have to suffer and deal with it.

[The Guitar Slayer]

Considering the fact that the UK had it at 80p a liter when I was there last, I wouldn't complain. By the way, 80p a liter equals out to roughly $6.40 a gallon. I'm not sure what it is now, but there are a lot of other countries in the world that have had it cost a LOT more per gallon. The difference is that they tend to have more fuel efficient cars and use them less compared to Americans.

[Assembler]

HERE IN NEW JERSEY YES IT WILL BY JULY 4TH

IN BROOKLYN ALREADY HAS IT AT $ 4.50
My part of brroklyn has it at $3.39. and I hope this stops cause this is getting ridiculus. :mad:

[Captain Harlock]

In south New Jersey, it's fluxuating between $2.50 - $2.80. Hasn't gone up to $3 yet. Where I live is near some oil refineries or something, so gas has always been realatively cheap ($2.15 during the winter).

[Zinal]

Our gas prices in VA is $3.23-$3.60. And yes, I believe it will go that high. :(

[Kagetsu]

They are currently shifting to summer blends and they didn't (or didn't want to) plan well so now there are shortages. I expect a small spike yet, but believe it will be more resonable soon. For us it's now around three/gal. I epect under three again,,, but it's just an "economists guess" and we all know how accurate they are.:p

[Moto Pete]

In south New Jersey, it's fluxuating between $2.50 - $2.80. Hasn't gone up to $3 yet. Where I live is near some oil refineries or something, so gas has always been realatively cheap ($2.15 during the winter).

what part u from

i live in cumberland/salem/atlantic area it btwn 2.80-3.00

[sun]

If you are close to an American oil source and a refinery, and transportation from refinery to station is quite easy, it will matter some...But over all, price is determined by supply and demand..
..Some say price will go down once they have changed over to a summer blend which is somewhat cleaner, and refinery capacity is not total right now..
...Others say it wont matter..Over the long haul, because of India and Chinese demand for oil, the price will continue to rise..no matter what happens.I believe the latter...We in the U.S.A. have 2/5 of all of the vehicles in the world, many of which do not get good gas milage. If gas goes to $5.00 the poor milage cars will become junk unless owned by wealthy people..We talked about this once before, but things have changed. I suspect that hybreds will become even more in demand if this raise continues,,,but no one knows...remember we have 280 million here in the U.S.A. and in India, if their growing middle class which some say is 20 -25% all want a car, that will mean 250 million cars.........all competing for the oil in the world..
...Yesterday Brazil opened a refinery which produces a combination of oil and corn, and all the cars are fitted for that ...They are now completely self sufficient in this area..I wonder if we will ever be able to do the same.....Stuart

[One Radical Dude]

I don't believe that's going to happen this year, unless areas of the Gulf Coast get slammed by major hurricanes (and take out refineries). It will be possible in our future, unless we start doing something about it (which we aren't doing anything, except complain). We need to seriously cut our reliance on foreign oil, expand our refineries, push even harder for alternative fuels -- advance our fueling technology, reduce car trips, and contact your leaders that you are not happy with what's going, and you want them to take action (or else). Otherwise, we're going to continue to get hosed.

[Peter Paltridge]

My hope is that this will finally make people start turning away from gas-glumping machines and toward a more permanent fuel solution.....though the late 70's didn't accomplish that, I still have hope we'll get smart this time.

The sooner we eliminate our dependence on oil, the sooner we can cut off the leash that's dragging us down and let those stupid countries kill themselves.

[AnimatedSnow47]

Predictions are swirling of a massive plummet in oil prices per barrel, and could get as low as $30/barrel by the summer. I expect gas prices to be in the $1.25 - $1.50 range once this occurs.

[One Radical Dude]

Predictions are swirling of a massive plummet in oil prices per barrel, and could get as low as $30/barrel by the summer. I expect gas prices to be in the $1.25 - $1.50 range once this occurs.

I just can't imagine this happening. It sounds great, but to me, that doesn't sound like it'll happen anytime soon (if not ever again).

[Tenku]

Man, I remember gas used to be .98 cents a gallon. I was happy, and I wasn't even driving yet.

But now, I'm really hoping that I can get enough scholarships to stay on campus. My comuting from my house to the campus well...it's going to cost. You think a small car would not take up so much gas. :shrug:

It hasn't hit 3 bucks yet. I'm glad that I live near a military base; it shaves off at least 8 cents.

[Kury Wagner]

I saw several gas stations today; most of them were at $2.99. Though, a couple of days ago it was about $3.06 around the area, I believe.

I don't hear much talk about it, on the news or the streetAre you kidding? That's all I ever hear! Well, that and the same annoying local stuff (the Jude trial, those two missing boys, Lee Holloway, et cetera..). Everyone's moaning over it.

[silverwings]

hit 3 bucks in Baltimore before I left for school again. Not sure about the prices here in Boston. Am not looking forward to driving home in 3 weeks. We're hoping we can make it to NJ, which has some of the lowest prices in the country.

Yeah, I think it'll hit 4 bucks unless the gov. steps in with a price ceiling. The only problem I have is whether prices will EVER go back down when barrel prices go down. :shrug:

But yeah, I was already seeing people being picky with prices. The stations priced 5-6 cents lower were packed... lines were nearly in the street. i expect it to get worse.

[Bubblegum Girl]

Right now the cheapest gas in my area is $2.89 plus they're making pay first before we start pumping and I don't like it since I don't excatly know how much I need to fill my car up. I can't put $20 just to find out after I need $2 more...If it goes up to $3 or $4, I swear I'm going start taking the bus...

[One Radical Dude]

Pre-pay (or pay before pumping) is becoming more common at the pumps (though some have done this a long time ago), as more folks try to drive off without paying. I can see why some may not like it, but for those that work at the convenience stores, it's really a good thing (if someone drives off, the cashier has to pay for it).

[Chrono1995]

If it does, I'm selling the car and getting a Vespa.

[Artimus Gigan]

If it does, I'm selling the car and getting a Vespa.
Those can't be ridden on North American highways, they don't go fast enough

and forget riding those in European Countries like Germany, in many places you can go 100+ miles per hour legally

Vespas are pretty much concentraited on small areas or Islands like Bermuda or just ment to be driven locally for short distances.

They are more or less a novelty vehicle

You're better off getting a fuel efficant compact vehicle or a Hybrid Fuel Vehicle

[Elven Moon]

Around the time I first got my license, gas was $0.99 and I could fill up my tank for $15 :shrug:

[Strollymonster]

It's already over $4 in California, but they've always tended towards higher prices.

Here in Central IL, we're at $2.86.

[New Noise]

I can see it happening. Thank goodness I don't drive.

[ConquerorWorm]

Last time I checked in my area it was at $1.05 Canadian/litre which works out to about $3.50 US/gallon. Some of the local gas stations still haven't enlarged their signs to hold the extra digit.

I really wish there were more options for train travel in my area. Still it's a small price to pay for living in a rural area.

[Alex Toon]

Guys, I just saw a CNN special about the consequences of the "oil addiction". It showed Brazil developing sugarcane-based E85 fuel, and they were pretty much independent.
Who knew junk food and the cause of obesity could become America's savior?

[RayChuang]

Guys, I just saw a CNN special about the consequences of the "oil addiction". It showed Brazil developing sugarcane-based E85 fuel, and they were pretty much independent.


However, people forget that Brazil is not as fuel-independent as people think. Most of their automotive gasoline is E10 (like what you can get in most of the USA now), not the E85 to E100 like the Brazilians want you to believe. That's because Brazil somehow lucked out and found its own oilfields and got most of its crude oil from nearby Venezuela.

Also, E85 is not a completely practical solution, either--you need a huge amount of ethanol to meet the fueling demand. Brazil did this by growing massive plantations of sugar cane to make ethanol; unless we grow unprecedented amounts of corn and sugar beets in the continental USA you still don't have enough to make ethanol for American needs of E85 fuel. (Ethanol from cellulose is still at least 8-10 years away.)

Anyway, it is of my opinion that once crude oil punch through the US$70/barrel barrier it becomes an elastic (e.g., consumers are sensitive to price) commodity, and given that there are reports of reduced driving we could see an oversupply of petroleum products by June 2006 as too much high-priced oil has killed off demand.

[sun]

However, people forget that Brazil is not as fuel-independent as people think. Most of their automotive gasoline is E10 (like what you can get in most of the USA now), not the E85 to E100 like the Brazilians want you to believe. That's because Brazil somehow lucked out and found its own oilfields and got most of its crude oil from nearby Venezuela.

Also, E85 is not a completely practical solution, either--you need a huge amount of ethanol to meet the fueling demand. Brazil did this by growing massive plantations of sugar cane to make ethanol; unless we grow unprecedented amounts of corn and sugar beets in the continental USA you still don't have enough to make ethanol for American needs of E85 fuel. (Ethanol from cellulose is still at least 8-10 years away.)

Anyway, it is of my opinion that once crude oil punch through the US$70/barrel barrier it becomes an elastic (e.g., consumers are sensitive to price) commodity, and given that there are reports of reduced driving we could see an oversupply of petroleum products by June 2006 as too much high-priced oil has killed off demand.

Many studies have been done on your last paragraph, on the inelastic vs elastic nature of gasoline....Some have said that people will not really become sensitive to price commodity till it gets to $5.00 a gallon...No one knows for sure..Especially if it costs $100.00 to fill the tank of an SUV...One thing is for sure, it is a tax on driving commuters, and those who must use their cars for work..Furthere, the cost of oil permeates the entire economy, so you see the price of trash bags go up 200 per cent in a year..and almost everything else made with oil. This could hurt the summer driving season,and who knows what else, trips, and the entire economy if oil stays this high (or goes a lot higher) ..None of us knows when people will really start driving less, or switch to Public Trans where available, or car pool in significant numbers to lower the demand, and eventually the price..(this elastic vs inelastic stuff is from Economics 101, if you had it in high school or college) ...........................Stuart

[Weatherman]

However, people forget that Brazil is not as fuel-independent as people think. Most of their automotive gasoline is E10 (like what you can get in most of the USA now), not the E85 to E100 like the Brazilians want you to believe. That's because Brazil somehow lucked out and found its own oilfields and got most of its crude oil from nearby Venezuela.

Also, E85 is not a completely practical solution, either--you need a huge amount of ethanol to meet the fueling demand. Brazil did this by growing massive plantations of sugar cane to make ethanol; unless we grow unprecedented amounts of corn and sugar beets in the continental USA you still don't have enough to make ethanol for American needs of E85 fuel. (Ethanol from cellulose is still at least 8-10 years away.)

Anyway, it is of my opinion that once crude oil punch through the US$70/barrel barrier it becomes an elastic (e.g., consumers are sensitive to price) commodity, and given that there are reports of reduced driving we could see an oversupply of petroleum products by June 2006 as too much high-priced oil has killed off demand.

If we had a smarter farm system that wouldn't be so much of a problem. There are so many competing interests in that field that the whole system is completely bass ackwards.

4? Why stop there? The oil companies know they have us over a barrel, litteraly and figureatively. They can keep raising and raising and raising their rates and we don't have any choice but to pay if we want to go anywhere. The whole transporation system in the USA is designed to make your drive as much as possible so oil demand keeps going up and up and up.

You can't tell me that a company that owns every step of production from well to pump can't control it's prices if it wants to. The obscene profits they're making right now should put the lie to most any claim they might make of "helplessness" in the face of this situation.

BTW Guitar Slayer, gas may be 6.40 a gallon over there, but a huge part of that is taxes. Take off the taxes and it's at least equivalent if not cheaper over there than here.

[RayChuang]

Many studies have been done on your last paragraph, on the inelastic vs elastic nature of gasoline....Some have said that people will not really become sensitive to price commodity till it gets to $5.00 a gallon...No one knows for sure..Especially if it costs $100.00 to fill the tank of an SUV...

I think when the US$3.00/US gallon psychological barrier was reached, you will start to see demand drop. Indeed, surveys taken with the last week show discretionary driving has dropped quite a lot, and this will set the stage of too much expensive oil not being sold and that will cause a price crash.

[RayChuang]

BTW Guitar Slayer, gas may be 6.40 a gallon over there, but a huge part of that is taxes. Take off the taxes and it's at least equivalent if not cheaper over there than here.

Actually, I've heard that the average price of gasoline in Europe may soon reach the equivalent of US$8.00/US gallon there very soon. Even in Europe, where people drive a lot B-segment cars like the Ford Fiesta, Volkswagen Polo, Fiat Punto, Renault Clio, Peugeot 206 (soon 207) and Opel/Vauxhall Corsa, paying around US$8.00/US gallon for gasoline is a bit much to take. :eek:

[Moto Pete]

i guess if your used to it then its not as bad( 8.00/gallon)

a Gallon of milk is 3.69
a gallon of Juicy juice is 4.99

[sun]

I think when the US$3.00/US gallon psychological barrier was reached, you will start to see demand drop. Indeed, surveys taken with the last week show discretionary driving has dropped quite a lot, and this will set the stage of too much expensive oil not being sold and that will cause a price crash.
No matter what I think, it will be the thinking of all people living in the U.S.A. collectively that will determine the price..and for all of our best intersts, I hope and pray, Ray, that you are correct, and that I am wrong...Stuart:) oh, and in relationship to another post, Eleven Moon- post #24, as recently as 7 years ago, I was driving thru Tennessee,Feb 99, and bought some gas for 73 cents a gallon...I hate to say what it cost when I got my license...............Stuart

[Deadman]

i think it might very soon.

[sdp]

i guess if your used to it then its not as bad( 8.00/gallon)

a Gallon of milk is 3.69
a gallon of Juicy juice is 4.99
i don't understand those comparisons.
do you drink 12 gallons of milk or juice a week?

[BigLouMan20]

Here is San Antonio the cheapest is Wal*mart at $2.70 while other places is $2.80. During that Katrina stuff when gas was $3.00, people were filling up with gas containers.:sad: Thank god for my '89 Jetta getting 30 miles a gallon.

[Weatherman]

Actually, I've heard that the average price of gasoline in Europe may soon reach the equivalent of US$8.00/US gallon there very soon. Even in Europe, where people drive a lot B-segment cars like the Ford Fiesta, Volkswagen Polo, Fiat Punto, Renault Clio, Peugeot 206 (soon 207) and Opel/Vauxhall Corsa, paying around US$8.00/US gallon for gasoline is a bit much to take. :eek:

That's including the massive taxes they pay on gas. Take off the taxes and it's not as eye-popping a gap.

Still, you're right, the prices are just insane.

Like SDP said Mondo, you don't buy 12-20 gallons of milk every week. That's why you realy can't compare the two.

[RayChuang]

That's including the massive taxes they pay on gas. Take off the taxes and it's not as eye-popping a gap.


Actually, just a few years ago gasoline in Europe sold for around the equivalent of US$4.50/US gallon, and that's including the massive taxes on the fuel! With the price soon to reach the equivalent of US$8.00/US gallon small wonder why everybody there wants to buy a motor scooter (like a Vespa LX).

[Moto Pete]

i don't understand those comparisons.
do you drink 12 gallons of milk or juice a week?

nah i was just pointing out the comparison

[AnimatedSnow47]

i guess if your used to it then its not as bad( 8.00/gallon)

a Gallon of milk is 3.69
a gallon of Juicy juice is 4.99

Add to that, I believe I heard Nail Polish would be like $1000/gallon based on current volume-to-dollar ratios.

Gasoline's got it good! :anime:

[One Radical Dude]

Last Friday, it was $2.86, and then it was $2.78 the next day. It's been $2.78 the whole time.

At least we HAVE gas to buy (albeit pricey) and aren't dealing with the shortages from the 1970s.

[sun]

Even if we have enough supplies, if demand in the U.S.A increases this summer, and no one knows at this point if it will, then with limiited refinery capacity, it is possible we will return to the long lines of the 70s(some have already appreared for a short while in parts of the country) ..Again no one knows...I am not sure if it is true, but I have heard that not all the refineries have been restored and are working from Hurricane Katrina( does anyone know here?)..If so, we have less capacity than even last year, because in the end, even with lots of oil, it must be turned into gasoline, and if the bottleneck is in the refineries, (no new one has been built in 30 years),( they are planning one outside of Yuma AZ, if the town oks it)... then we will still have a shortage, and possible long lines even with extra supply of oil, and the huge storage tankes full...

[RayChuang]

Even if we have enough supplies, if demand in the U.S.A increases this summer, and no one knows at this point if it will, then with limiited refinery capacity, it is possible we will return to the long lines of the 70s(some have already appreared for a short while in parts of the country)

It will never happen for this reason: there are no price controls in place, which will cause shortages. As such, the high price is already starting to deter recreational driving, and that could result by mid-summer (especially once all the refineries finished converting over to summer-blend gasoline and with most of the Gulf of Mexico platforms full back online) an oversupply of high-priced fuel, and something's got to give when that happens.

[sun]

It will never happen for this reason: there are no price controls in place, which will cause shortages. As such, the high price is already starting to deter recreational driving, and that could result by mid-summer (especially once all the refineries finished converting over to summer-blend gasoline and with most of the Gulf of Mexico platforms full back online) an oversupply of high-priced fuel, and something's got to give when that happens.
I sure hope that you are right..Makes a lot of sence too...We will just have to wait and see...There are so many factors that could change things...Let us hope for the oversupply that you predict. That will definitely lower the price considerably.

[RayChuang]

I sure hope that you are right..Makes a lot of sence too...We will just have to wait and see...There are so many factors that could change things...Let us hope for the oversupply that you predict. That will definitely lower the price considerably.

The big issue here right now is that a number of refineries are down for maintanence--while at the same time doing the conversion to summer-blend fuels. Why the maintanence now? Because many of them have been running non-stop trying to make up for the shortfall caused by the Katrina and Rita hurricane damage. The conversion is just about complete, and with most refineries fully operational by May 2006, there will be plentiful supplies and since people are reluctant to buy US$3.00 gasoline, something will give.

[Weatherman]

The big issue here right now is that a number of refineries are down for maintanence--while at the same time doing the conversion to summer-blend fuels. Why the maintanence now? Because many of them have been running non-stop trying to make up for the shortfall caused by the Katrina and Rita hurricane damage. The conversion is just about complete, and with most refineries fully operational by May 2006, there will be plentiful supplies and since people are reluctant to buy US$3.00 gasoline, something will give.

I know the facilities need maintenence, but it just feels really convient to have so much capacity go off-line all at once. Again, the total monopoly an oil company holds over the process plays into this. We really don't have any competition in the oil market. it's the exact opposite of the standard retail formula in the USA, where one store sells a bunch of different brands at competing prices and no one company owns every level of the production process.

[RayChuang]

I know the facilities need maintenence, but it just feels really convient to have so much capacity go off-line all at once.

You didn't read what I just said about Katrina and Rita hurricane damage. That was an unusual situation that effectively knocked out a huge fraction of US oil extraction and production capacity for several months, forcing the remaining refineries to run WAY overtime to catch up with the shortfall, delaying scheduled maintanence until just very recently. (Normally, refineries go down around the middle two weeks of March in a phased fashion to convert to summer-blend fuel.) But now that by mid-May most of the major oil production facilities in the Gulf are back to fully active status and with the completion of conversion to summer-blend motor fuels at the end of April 2006, expect the supply situation to be less tight and we may see a fall in crude oil prices until at least July 2006.

[Weatherman]

You didn't read what I just said about Katrina and Rita hurricane damage. That was an unusual situation that effectively knocked out a huge fraction of US oil extraction and production capacity for several months, forcing the remaining refineries to run WAY overtime to catch up with the shortfall, delaying scheduled maintanence until just very recently. (Normally, refineries go down around the middle two weeks of March in a phased fashion to convert to summer-blend fuel.) But now that by mid-May most of the major oil production facilities in the Gulf are back to fully active status and with the completion of conversion to summer-blend motor fuels at the end of April 2006, expect the supply situation to be less tight and we may see a fall in crude oil prices until at least July 2006.

I know there was major damage to some facilities down there, but it jus tseems like either they really need to plan htese kinds of things a little better or, in fact, they know that by reducing capacity they can raise their profits, so they do. Almost every move the oil companies have made of late just make me even more suspicious of their motives. T

here's no shame in making a decent profit, but the whole situation right now is just obscene and borderline unethical, though not illegal by any means thanks to the "new ecconomy" of "bigger is ALWAYS better! Wanna merge you multi-billion dollar companies and crush competiton? How can we make that easier for you?". Just becasue a company can raise it's prices doesn't mean they should. It's not like higher oil prices have hurt their profits one bit.

Every jump in oil prices is coresponded by a jump in profits. The companies costs obviously aren't going up as much as the prices should reflect if their using the same profit standards for all of their desicions. They know they can raise their profits, and they do whatever they cost to everyone else.

[sun]

Another thing that doesn't give us reassurance about the oil companies is the huge retirement package they gave the past President of EXXON MOBILE.
The retirement package ammounted to over 300 million dollars, I do not recall the exact number, but may be even closer to 400 million.
..Now even if all that Ray says is true, and prices go down, as we all hope, how does it look to the average guy, who is just getting by, paying even $2.50 a gallon, driving 25 miles each way to work, when some exec, who doesn't work as hard as the average guy and here is this exec who lucks out for what ever reasons, and retires with that kind of money...Some say that the oil companies are not making huge profits., but to give a retirement plan like that , just cause the guy runs the company a few years, doesn't give confidence to the average guy or gal who is paying 50 dollars to fill up the tank...That kind of retirement, when so many people don't even have good retirement plans, some have none but social security, is obsecne...as far as I am concerned............Stuat

[sun]

Gas in some places is now over $3.50 cents for premium..Last post on this was in April.......
Due to outside international events...(won't go into)..oil opened at 78 dollars a barrel...This should raise the cost anywhere between l0-20 cents per gallon in the next few days, maybe more.......Getting mighty close to $4.00..

....Now what do you think is going to happen..?.Will people stop driving, drive less, buy smaller cars, use public trans..etc...Or Act as if nothing has happened..and keep driving as usual...

..I might add..the price of simple things that use plastics, (which come from oil) has tripled in the last year or so....Like the price of plastic garbage bags....This will run through the entire economy..sooner or later.What do you think?.

[Dr. OneWay]

Here in Michigan its only about $2.45, but varies.

[livingfruitvirus]

It's still hovering around the $2.70s here.

I can't wait til we begin drilling in the gulf.

[Wanted]

I can't wait til we begin drilling in the gulf.And here I was waiting for the next hurricane.

Silly me.

[Alex Toon]

They tell us t try flex-fuel vehicles to reduce emissions. But here in Louisiana, that's impossible- there are no E85 stations here at all!
How long do you think until E85 stations start popping up?

[sun]

Hard to know, depends on availability of E85, and whether or not there will be sufficient supply to meet demand..probably six months to a year. Many other factors will decide this issue of E85.
...If Big Oil cannot own the stations, then they may actually try to prevent them from being built..After all E85 is mostly a corn product. so the oil companies will not be making the kind of profit on it that they would make selling regular gasoline...We will have to wait and see,,no one knows what the price of gas will be...But if the price of a barrel of oil remains at 78 dollars a barrel, I think it will go up soon, very soon..The Big Oil Companies are not known to take a big hit on what they buy. They might do so this time, though, because of upcoming events in November.. .They have not been known to be the nicest of companies...

[Zach Logan]

Well it will be $80 per barrel soon, so I expect in states like New York, California, and those with tighter environmental restrictions that the gas will soon surpass four dollars. This, however, with the extreme amount of turmoil in the middle east, will just continue to rise over the next month or two. I expect to see it pass five dollars soon enough, since they predict that it will be $100 per barrel. With the hurricane season coming, I would expect five dollars a gallon just about everywhere by the end of the year (either premium or just regular).

[Zorak Masaki]

Around here in MS Gas is in the $2.73 mark (though i have seen some stations in the $2.68 level).

[Ickis]

Well, gas costs alot but in the 70's atleast people brought smaller cars and such, now most people are buying SUVs even for no real reason I can think of. I'm glad to be a weirdo as my passion for small foreign cars helps to give me a cool ride but also will save alot in gas, compare my 2 cyl Honda that gets an average of 60 MPG to any average vehicle in the states and you'll notice a big difference. Plus due to the lightweight of my Honda I can use it as a common driver once its fixed up, meaning I can drive on highways.

[True Noir]

It's been a pretty bad week to get gas here in Indiana. Prices seem to be rising my the cent each day. It went from I think...2.99 to 3.10 in a matter of a day where I live. It's still rising (along with the temperature). Makes me shake my fist at the gas stations whenever I pass them.

[sun]

It's been a pretty bad week to get gas here in Indiana. Prices seem to be rising my the cent each day. It went from I think...2.99 to 3.10 in a matter of a day where I live. It's still rising (along with the temperature). Makes me shake my fist at the gas stations whenever I pass them.
True, It is not the gas stations themselves that set the prices..It is regional managers for the oil comapnies, who set price ranges..Those ranges are usually a within a 5 ro 10 cent range...

Individual stations, unless they are gouging, which occasionally happens, make no more per gallon then they did when it was two dollars a gallon.
It is the oil companies, and supply and demand factors which determine price ultimately.
...Bill in the post before yours, states he gets 60 miles a gallon..If every driver in the U.S.A. and around the world got that much..I doubt very much there would be a price problem in spite of international events..Specuators could not drive price up, with an over supply of the product..If someone wanted to drive a car that got less than 50 miles per gallon, then when he bought that car, he should pay an additional tax for using up scarce resources. That tax could be earmarked for alternative fuels, and subsidizing the research which would enable cars to get 75 miles per gallon..
..All of this is just wishful thinking...It won't happen...Next week watch for another huge spike in prices.............................................Stuart

[Dogbert]

...Bill in the post before yours, states he gets 60 miles a gallon..If every driver in the U.S.A. and around the world got that much..I doubt very much there would be a price problem in spite of international events..Specuators could not drive price up, with an over supply of the product..If someone wanted to drive a car that got less than 50 miles per gallon, then when he bought that car, he should pay an additional tax for using up scarce resources. That tax could be earmarked for alternative fuels, and subsidizing the research which would enable cars to get 75 miles per gallon..
..All of this is just wishful thinking...It won't happen...Next week watch for another huge spike in prices.............................................StuartThat's nice in theory, but not quite as perfect in practice. How would you handle a tax like that for someone who can't afford a hybrid? There are plenty of people who can't buy newer (post-90s) cars and therefore are stuck around or below 30MPG. I myself would have loved a hybrid (driving about 480 miles per week during the school year, it'd save me a lot of money), but when I bought my car last year, I spent every penny I had and couldn't get anything above 32 MPG. Before that, I had an '86 Reliant that got 24 MPG. Also, there are people who legitimately need more powerful vehicles, like people who need to haul equipment or people in more northern rural areas who need four-wheel drive during the winter. It's fine to want a luxury tax for people who choose to get more power that don't need it, but how many people does that actually include and how do you measure if it's necessary?

I've already budgeted $1,500 for gas for the upcoming school year (which is based on a $3.00 price). Right now I can't afford to buy a $10,000+ car just to save $750 per year. There are too many others in the same situation...

[sun]

That's nice in theory, but not quite as perfect in practice. How would you handle a tax like that for someone who can't afford a hybrid? There are plenty of people who can't buy newer (post-90s) cars and therefore are stuck around or below 30MPG. I myself would have loved a hybrid (driving about 480 miles per week during the school year, it'd save me a lot of money), but when I bought my car last year, I spent every penny I had and couldn't get anything above 32 MPG. Before that, I had an '86 Reliant that got 24 MPG. Also, there are people who legitimately need more powerful vehicles, like people who need to haul equipment or people in more northern rural areas who need four-wheel drive during the winter. It's fine to want a luxury tax for people who choose to get more power that don't need it, but how many people does that actually include and how do you measure if it's necessary?

I've already budgeted $1,500 for gas for the upcoming school year (which is based on a $3.00 price). Right now I can't afford to buy a $10,000+ car just to save $750 per year. There are too many others in the same situation...
...I was wrong about that tax, it is indeed unrealistic..(I did say it was wishful thinking) .If someone is getting about 30 mpg..or somewhat below, I think you are doing fine..
....As far as those who need more power, that is kind of touchy, Why? because you can have enough power with engines that use less gas, but they haven't made them yet... the Z man is quoted earlier on, that next year a powerful SUV will be available that will run on E85..Ford will be, or has introduced a hybrid SUV.
...There were gas lines in the 70s, and we had a warning...but little has been done, to improve over all gas miliage, so here we are...
...The U.S.A. could have done more, but car companies and oil companies liked what they saw...and made huge profits on the cars and oil they sold..
..The SUVs, raked in many thousands in profits, as recently as two or three years ago....Why should anyone change.. Recently they stopped production on the large Cadilac SUV, that almost looks like a tank...Is it called a Hummer??..really don't know..I don't get as much gas milagae as you...so, I need to buy a new car too, and I cannot afford one either...
.....................We will all need good luck to make it if gas goes a whole lot higher ................................................................Stuart

[Ickis]

If anyone lives in CA they are lucky, over there you can find alot of 4cyl-2cyl new and old cars, theres alot of Hondas like mine over there too. One thing puzzles me though, I heard in Europe they've been paying high gas prices for a longer time than us, why do they have to pay more for gas? Over there alot of their cars are small and have little motors, plus they don't have vehicle sports that involve vehicles with big motors like drag racing or monster trucks, plus alot of rally cars that are even 4WD have a 4 cylinder motor.

[sun]

If anyone lives in CA they are lucky, over there you can find alot of 4cyl-2cyl new and old cars, theres alot of Hondas like mine over there too. One thing puzzles me though, I heard in Europe they've been paying high gas prices for a longer time than us, why do they have to pay more for gas? Over there alot of their cars are small and have little motors, plus they don't have vehicle sports that involve vehicles with big motors like drag racing or monster trucks, plus alot of rally cars that are even 4WD have a 4 cylinder motor.
In Europe, they tax gas l00 per cent, or more, depending on the country so the cost per gallon is seven dollars a gallon, maybe less or more..Why? for several reasons..
..To raise money for many different types of programs, also to help pay for an excellent public transit system you will find in most European cities, to discourage use of too many cars, and some countries use the tax to pay for trains that travel almost everywhere in Europe...The cost of the ticket on a train is at least reasonable, compared to flying which is expensive. Lots of other reasons for the TAX, but that is why the cost is so high there..
...It is hard to believe, but I read that in London, there was so much traffic, that to discourage traffic in the city center, you have to pay a five dollar tax just to enter the city center on work week days..Don't know if that is still true, perhaps James can verify...But it is hard to believe..By the way...I think I read that it did indeed reduce traffic jams in London by a huge amount, but I don't know if the tax is still on, or even if it is true..................................Stuart

[Squall]

Well it will be $80 per barrel soon... This, however, with the extreme amount of turmoil in the middle east, will just continue to rise over the next month or two. I expect to see it pass five dollars soon enough, since they predict that it will be $100 per barrel.

I can remember when gas cost $1 a gallon. Then, after the Sept. 11, 2001 attacks in the U.S., gas prices rose to $2 a gallon, and never looked back. Gas prices have hovered around $3 a gallon since the U.S.-led invasion of Iraq...

The conflict(s) in the Middle East may soon turn from merely being "turmoil" to all-out war. If Hezbollah manages to escape from Lebanon and flee to Syria, and Israel attacks Syria, then Iran may fire missles at Israel. Israel has told Iran in no uncertain terms that they would retaliate -- possibly with nuclear weapons. At that point, the U.S. and European Union (who already has troops in Iraq and Afghanistan), Russia, and China (both of whom also have major oil interests in the Middle East, mostly purchased from Iran) will then get involved. Then we'll have a major regional war, I think! Gas prices will be the least of our problems at that point. :o

Of course, this is a worst case scenario, but it's entirely within the realm of possibility at this point.

Oh, and hurricane season in the U.S.? Just bonus points in the "we've gone to hell in a handbasket" department.

[sun]

[quote=Squall]I can remember when gas cost $1 a gallon. Then, after the Sept. 11, 2001 attacks in the U.S., gas prices rose to $2 a gallon, and never looked back. Gas prices have hovered around $3 a gallon since the U.S.-led invasion of Iraq...

The conflict(s) in the Middle East may soon turn from merely being "turmoil" to all-out war. If Hezbollah manages to escape from Lebanon and flee to Syria, and Israel attacks Syria, then Iran may fire missles at Israel. Israel has told Iran in no uncertain terms that they would retaliate -- possibly with nuclear weapons. At that point, the U.S. and European Union (who already has troops in Iraq and Afghanistan), Russia, and China (both of whom also have major oil interests in the Middle East, mostly purchased from Iran) will then get involved. Then we'll have a major regional war, I think! Gas prices will be the least of our problems at that point. :o

It is Tuesday, by now, I would have expected a huge increase between 15-and 20 cents per gallon...Nope, not happening...Why expect this?
. Always yes always in the past, when the world price has spiked upwards on the world market, for any reason, the oil companies have immediately passed on the increases to the public..
...I have had an interest in this for years..for curiosity, and just because I like economics and used to teach it..I would expect that Squall's reasoning is accurate, but where is the increase???? Not at the stations near me..same as last week. Therefore, no one knows what is going to happen..People are driving as much as before according to the reports I have read..I could speculate, but that kind of talk does not belong here. We will just have to wait and see. It seems that other factors are in play this time around.....................................................Stuart

[sun]

Oil prices have been stagnant because of increased supplies, increased oil refinery output, in spite of increased demand...Expectations that international issues will not affect the oil output and supply have lowered prices in just 3 days..

..You never really know what the market will do, or what prices will be in spite of increased usage..Here is the imporatant part of the story from Yahoo Finance

"Light sweet crude for August delivery tumbled $1.59 to $71.95 a barrel on the New York Mercantile Exchange, where gasoline futures declined by 5.7 cent to $2.21 a gallon.
September Brent crude futures on London's ICE Futures exchange were up 17 cents to $74.53 a barrel.
In its weekly inventory report, the Energy Department said gasoline inventories grew by 1.5 million barrels last week to 214.2 million barrels, or close to 1 percent above year ago levels.
The increase in supplies came as refineries cranked up their production, pumping out at 93 percent of their total capacity to meet growing demand. Over the past four weeks, gasoline demand in the U.S. averaged almost 9.6 million barrels per day, or 1.9 percent greater than last year.
But oil prices began to fall even before the U.S. data was released."

[sun]

From CNN news, today Sunday July 24 7:41 Central time

Gas across the country reached a record high..Well in my area it was alrready close to a record, but next week who knows.???????????been wrong on this so many times, I refuse to say much more..But here is the link if you want to read it.Again it is at CNN news... Prices at pumps set new record (http://money.cnn.com/2006/07/23/news/economy/gas_lundberg/index.htm?cnn=yes)

[mookie75]

From CNN news, today Sunday July 24 7:41 Central time

Gas across the country reached a record high..Well in my area it was alrready close to a record, but next week who knows.???????????been wrong on this so many times, I refuse to say much more..But here is the link if you want to read it.Again it is at CNN news... Prices at pumps set new record (http://money.cnn.com/2006/07/23/news/economy/gas_lundberg/index.htm?cnn=yes)

I guess I live in a lucky part of the country then. The price at my local station hasn't left the low to mid $2.90s in at least three weeks now. Not that this is a good price by any stretch of the imagination, but it hasn't been on the rise either.

[sun]

Today, I saw the highest price for gas, I have ever seen. 3.33. for regular unleaded near where I live...It seems that they are raising the prices very slowly, as users get used to paying high prices..a penny or two a week, or a nickel once every ten days...something like that...not all at once...
..Oil companies have released record profits in the last few days...
..Doesn't look very good if they raise it a lot...My guess is that the 20 - 30 cent increase that I talked about earlier will be eased in gradually over a month or so...maybe longer....people get used to it gradually..Then if it is lowered a little, say back to $3.00..we think we have got it really good..I know in some places it isn't that high, some it is a little higher...My area tends to always be high......
..If there is significant hurricane damage to production and refinery capacity in the U.SA, or something affects production overseas, then I am sure this will change much quicker..
..Nevertheless, the increased cost of oil, is creeping into the economy, we are experiencing inflation in other areas of life..That is very dangerous..As stated earlier, plastics are made from oil..They are in many, many products.Other things are made from oil too...Expect prices of those things to go up. Sadly, it really does not look there will be much easing soon..But as with any future events, anything is possible..............................................Stuart