Gas Prices Through The Roof
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DaveH;193048 wrote:
Supply and demand does have a little to do with it, but it's mostly the commodity speculators jerking our chains.DING DING DING DING DING!!!! WE HAVE A WINNER!!!!! Take sweet crude of the commodity market and watch the prices fall as much as $20 to $30 per barrel.
Also, the weak US dollar has a lot to do with it as well. Our dollar doesn't buy what it used to (Canadian dollar is $1.07 compared to our $1.00) and therefore we aren't able to buy the oil as cheaply as before. The flip side of that is that we are now able to export more goods (wheat, etc...) on account of this.
(wait, did Dave and I just agree on something?)
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Biodiesel perhaps??
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Actually while it's often said that fuel is an inelsatic market.. 2 summers ago when GWB was on saying "everyone use less gas please" and it got up to 3.30 or 3.50/gal for premium (or whatever it was).... retail fuel consumption dropped like 10% that week or something.
10% drop in demand is HUGE.. and is bigger than the percentage of price fluctuation we're seeing.
Also, like I said... there's no company that owns enough of anything to corner the market and have their way with prices.
I agree that retail gas is more expensive than the true market price... after all, each gallon is taxed over 60 cents
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thrash;193227 wrote:
Actually while it's often said that fuel is an inelsatic market.. 2 summers ago when GWB was on saying "everyone use less gas please" and it got up to 3.30 or 3.50/gal for premium (or whatever it was).... retail fuel consumption dropped like 10% that week or something.10% drop in demand is HUGE.. and is bigger than the percentage of price fluctuation we're seeing.
Also, like I said... there's no company that owns enough of anything to corner the market and have their way with prices.
I agree that retail gas is more expensive than the true market price... after all, each gallon is taxed over 60 cents
Ron Paul '08 Baby!
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tjamz;193222 wrote:
Biodiesel perhaps?? -
Yeah I saw #1 diesel was 3.95 last night too... yikes, cold weather stay away
I have a Question that hopefully someone can answer, so i dont have to start a thread
Is all the diesel at the pumps in town ULSD? Because even the truck stops still have a ULSD sticker on the bottom of the pump... whats the deal... or is clear only offered in ULSD now, for emissons?
Because i want non ULSD in the old girl
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its less than $3 a gallon for 92 premium in enderlin,....has been for about 3-4 months now..
worth the drive just to fill up there almost
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MisterCMK;193230 wrote:
Do you happen to know what the various federal and state taxes are on gas?I found this link: http://www.energy.ca.gov/gasoline/margins/index.html
.. for the state of california. Note that CA has special fuel laws/formulations so its costs may be different than other places.
From wikipedia:
The U.S. federal gasoline tax as of 2005 was 18.4¢/gal (4.86¢/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22 cents per U.S. gallon (5.8¢/L), making the average combined tax on gasoline 42¢/gal. Unlike most goods in the U.S., the price displayed includes all taxes, rather than being calculated at the point of purchase.
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tjamz;193193 wrote:
DING DING DING DING DING!!!! WE HAVE A WINNER!!!!! Take sweet crude of the commodity market and watch the prices fall as much as $20 to $30 per barrel.> tjamz;193193 wrote:
Also, the weak US dollar has a lot to do with it as well. Our dollar doesn't buy what it used to (Canadian dollar is $1.07 compared to our $1.00) and therefore we aren't able to buy the oil as cheaply as before. The flip side of that is that we are now able to export more goods (wheat, etc...) on account of this.(wait, did Dave and I just agree on something?)
Without all of the speculation it would take considerable time for today’s jump in crude to trickle down to the pumps. If a barrel is purchased by the refinery today, how long does it take until it actually shows up at our local gas station? A month? A week? Either way, the oil company will jack the price of gas today based on today’s market speculation. When the oil market goes stagnant for a few days and crude sits still or trades lower, the gas prices still stay high for a few days. I have a feeling all of the record profits being scrubbed by the oil companies the last few years can be attributed to this simple notion. They are much quicker to raise their prices due to speculation than they are to lower their prices due to the actual market price of crude.
My $.02.
Lucas
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Biodiesel FTL!
Yes its an alternative..... But its something I would never do if I had a diesel truck. Some of you may know where I get my opinion.
I didnt go as far as buying a honda yet, but I bought another 240 for a year round DD. Hopefully we dont get the modding fingers for this one.
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DaveH;193318 wrote:
Thanks to whoever fixed the thread title.No prob...it was driving me nuts too
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Was talking to a trucker this morning at work....
With last week's fuel price is was costing him roughly $0.73/mile to haul. There is going to be a bunch of those guys that'll hang it up if fuel prices get much higher. Nothing gets shipped and the people on the other end go out of business.
As some point it has to hit a breaking point.
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dubbsy;193509 wrote:
Was talking to a trucker this morning at work....With last week's fuel price is was costing him roughly $0.73/mile to haul. There is going to be a bunch of those guys that'll hang it up if fuel prices get much higher. Nothing gets shipped and the people on the other end go out of business.
As some point it has to hit a breaking point.
Never really thought of that.
How high do you suppose it would have to get for it to be inefficient to actually ship gas anymore?
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how much does gas currently depend on trucks? pipelines and rail cars do a lot of the long-haul shipping already i think... you mostly see trucks for in-town distribution don't you ?
rail is incredibly efficient compared to trucking. Since the # of distribution points and the number of drop off points for fuel is pretty limited, i suspect pipeline and rail does a fair bit of the long-hauling already.
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