Skyrocketing Pump Prices Threaten Recovery

[Terri]

Skyrocketing Pump Prices Threaten Recovery

NewsMax
August 24, 2003

In a development that could stall economic recovery in the U.S., gasoline prices exploded in a 24-hour period starting Thursday morning, rising by as much 25 cents a gallon in some parts of the country.

"I literally came to work and gas across the street was $1.83," said Michael Fox, executive director of the Connecticut chapter of the Gasoline and Automotive Service Dealers of America. "I went to the bank, it was $1.90. I went to lunch it was $1.99," he told the Associated Press.

In New York's Long Island, pump prices for regular unleaded skyrocketed from $1.63 per gallon on Thursday morning to $1.85 on Saturday. In parts of Arizona the situation was even worse, with prices at the pump hitting a whopping $4.00 per gallon. Industry experts said the jump was due in part to the rupture of a local pipeline.

More (http://www.newsmax.com/archives/ic/2003/8/24/105827.shtml)

[pRIMrose]

Quote[/b] ]The latest price hike, for instance, could cost an average family with two cars as much as $325 a year, wiping out for many the benefits of Bush's first tax cut.

This is exactly what I was saying in another thread. The rise in personal taxes and now this incredible increase in the price of gas will more than eat away at the tax cut. http://www.gopusa.com/iB_html/non-cgi/emoticons/tqrolleyes.gif I just got a letter from the county saying that the Fire and Waste portion of my yearly taxes would be going up 60%. This doesn't include the increase in advalorem taxes ~ which are scheduled to increase also. The government giveth and the government taketh away as they see fit. http://www.gopusa.com/iB_html/non-cgi/emoticons/teeth2.gif

[Granite River]

What ever we do, let’s not disturb a caribou in the Artic or a squirrel down here. Let’s just pay the price for our dependence on the ME oil or walk.

I suggest that we switch to nuclear power to dominate the ME and then get the oil for free.

[Der Alte]

First of all, I don't think the situation in the ME has anything to do with the rise in gas prices - I believe its nothing more than price gouging. This brings me to the dimocrats always claiming that the Prez and VP have these big ties to OIL - if they had such big ties to oil don't you think they would want to keep the prices down so the political climate would favor the recovery and thus the republicans?

Eveyone is quick to blame Saudi Arabia for our gas woes - we only get approximately 5% of our oil from SA. It seems that we get most of our oil from Mexico, Canada and Venesuela.

Until someone can prove to me that its due to an actual shortage, I'll continue to believe its contrived to raise prices. In the 70s when OPEC cut shipments to punish the US, we had a shortage the following day, even though it takes 3 months for oil to go from the wellhead to the filling station. When the embargo was lifted gas was plentiful the following day. Go figure.

[jackbenimble]

Quote[/b] (Der Alte @ Aug. 25, 2003 -- 8:55 am)]Eveyone is quick to blame Saudi Arabia for our gas woes - we only get approximately 5% of our oil from SA. *It seems that we get most of our oil from Mexico, Canada and Venesuela.

Until someone can *prove to me that its due to an actual shortage, I'll continue to believe its contrived to raise prices. *In the 70s when OPEC cut shipments to punish the US, we had a shortage the following day, even though it takes 3 months for oil to go from the wellhead to the filling station. *
Der Alte,

Below is some very interesting reading for you by a guy named Dr. Colin Campbel who is one of the world's foremost oil reserve experts and who is also quite pessimistic. You might take it as an installment on proof. According to him, we have not seen anything yet. Before I give you the link here are a few comments about your quotes below.

First the world oil market is global. We don't buy a lot of oil directly from Saudi Arabia but the amount they produce still has a huge effect on the price we pay. We get our oil from Canada Venezuela, Mexico, domestically and everywhere else. But suppose Saudi Arabia, as the world's largest producer, were suddenly to close the tap. Everybody who still needs oil who used to buy it from the Saudi's like the Europeans, Japanese, etc would suddenly be tryinging to buy it from Canada, Venezuela, Mexico. This happens now except rather than closing the tap they adjust it up or down and global demand is matched to global supply by price increases and decreases.

Of course there is price gouging. Good businessmen seldom miss an opportunity to maximize profits. But gouging can only work where there is truly short supply. If the oil companies could manufacture these shortages out of thin air don't you think they would have done so at some point during the 90's when the price was at $9 bbl after the first Gulf War?

While I think weapons of mass destruction and Saddam's human rights failings had a lot to do with invading Iraq, I think it is more than a very happy coincidence that Iraq has the world's second greatest proven oil reserves. I note that we are much less anxious to invade N. Korea. The reason that we did not invade Saudi Arabia, even though they can much more easily be linked to Alcaeyda (15 of 19 hijackers, Wahibis, charities, etc) is that they have been quite accomodotive about keeping the world oil supply stable.

Finally, don't forget that even at $2.00 per gallon gas is a pretty good bargain. At the same gas station where people pay that price for a gallon of gas they often also pay a $1.00 for a pint of bottled water. And when I was a kid in mid-60's I remember candy bars being either $0.05 or $0.10 and gas being about $0.20 a gallon. Both have gone up about 10x in the last 40 years.

Here is the link to a Colin Campbell article (http://dieoff.org/page140.htm)

Regards,
Jack

[Terri]

A number of sources are saying that this is a blip due to the pipeline failure in Phoenix and the refinery shutdowns that resulted from the black out on the east coast.

Of course, it could always be the beginning of the end. http://www.gopusa.com/iB_html/non-cgi/emoticons/biggrin.gif

[pcyrdad]

Quote[/b] ]A number of sources are saying that this is a blip due to the pipeline failure in Phoenix and the refinery shutdowns that resulted from the black out on the east coast.

The outrageous prices in Phoenix (which have trickled down a little bit to the rest of the state) should start coming back down to earth soon (supposedly after Labor Day), since the pipe that burst here in Tucson has been temporarily bypassed, allowing gas to flow freely again, although not in the normal quantities. The initial repair to the pipe failed testing last week...

[Terri]

Here's a couple of sites for seeing what prices are around the country.

Flying J Gas Prices (http://www.flyingj.com/fuel/gasoline_CF.cfm?stat e=ALL)

Gas Buddy (http://www.gasbuddy.com/)

[pRIMrose]

All I know is, when gas goes up, so does everything related to it. And it rarely comes back down, even when gas comes down. http://www.gopusa.com/iB_html/non-cgi/emoticons/tqrolleyes.gif

Light bills, consumer prices, even the tickets at amusement parks all go up accordingly ~ they have to cover their energy costs too.

This is certainly a sure fire way to put pressure on the "foot draggers" who won't let us drill for our own oil or build new nuclear plants. http://www.gopusa.com/iB_html/non-cgi/emoticons/tqrolleyes.gif

On a lighter note ~ my hubby says we should have an oil surplus since New York didn't use any for a couple of days. http://www.gopusa.com/iB_html/non-cgi/emoticons/laff.gif

[Terri]

Part of it isn't an oil shortage but a refinery shortage. I wonder who would let us build a new refinery in their back yard.

Eventually, this country will have to either get over it's PC handling of green/liberals or change it's lifestyle completely to accomodate them.

[Terri]

Check Editorials on the news for a political essay entitled "The EPA and the Phoenix Gas Shortage".

It's written by a fellow from the Goldwater Institute.

[jonessa2]

Quote[/b] (jackbenimble @ Aug. 25, 2003 -- 10:06 am)]Of course there is price gouging. *Good businessmen seldom miss an opportunity to maximize profits. *But gouging can only work where there is truly short supply.

http://www.click-smilies.de/sammlung/natur/nature-smiley-016.gif
<span style='color:peach'><span style='font-family:georgia'><span style='font-size:11pt;line-height:100%'>I was told that 'they' could only raise gas .08cents over the cost of what 'they' paid for it.

It sounds like the place where the gas station owners purchase their petrol is gouging.
Most gas station have some sort of instant messaging that tells them what the current price of petrol is. *That's why you see people outside changeing the prices all time. *When it goes up, we pay. *Even tho' the station owner paid a lower price for petrol currently in their bulk tank. * Same thing for when the price goes down, the prices are changed.

Petrol station chains control the price sold at the pump. *So when I see the price @ 1.99$ at my local Amoco, it is supposed to be the same for all the stations. *Name brand stations are franchised and must adhere to the original format. *</span></span></span>

[azwhitewolf]

Quote[/b] ]I was told that 'they' could only raise gas .08cents over the cost of what 'they' paid for it.
Not in AZ. There's no &quot;Gouging-laws&quot; set in place, so they could sell it for $4.00 a gallon - and people ARE paying for it to avoid the lines.

Of course, the radio stations are keeping track of the biggest rip-offs and continue to bash them on the air. Lots of people are http://www.gopusa.com/iB_html/non-cgi/emoticons/no.gif about it.

Yeah, I love the http://www.gopusa.com/iB_html/non-cgi/emoticons/mosquito.gif environmentalists - &quot;Now is a perfect time to carpool&quot;. http://www.gopusa.com/iB_html/non-cgi/emoticons/nopityA.gif

[Terri]

My stepdad told me that there is a $2,000 fine for price gouging in Arkansas.

No matter what your position on this there is a story to support it. I hope this one is right. http://www.gopusa.com/iB_html/non-cgi/emoticons/biggrin.gif

Relief Near for Sky-High Gasoline Price (http://www.foxnews.com/story/0,2933,95776,00.html )

[navyblue]

Here in the L.A. suburbs, just filled up. 2.20 per gallon for mid grade.



(nudge)

[Terri]

It's still in the $1.60s and 1.70s range here. That's bad enough. I'm glad not to be a trendsetter, navyblue. http://www.gopusa.com/iB_html/non-cgi/emoticons/biggrin.gif

[azwhitewolf]

I left California for THIS?

http://www.gopusa.com/iB_html/non-cgi/emoticons/rotflo.gif

[navyblue]

Quote[/b] ]It's still in the $1.60s and 1.70s range here. That's bad enough. I'm glad not to be a trendsetter, navyblue. *


Some are born to lead and others are born to follow! *http://www.gopusa.com/iB_html/non-cgi/emoticons/biggrin.gif