The Cost of Gasoline News Roundup

[Ming]

Gas up double digits around here (Houston Area) in just the last week, a little painful with my Premium-thirsty supercharged Bonneville, so I did a little digging around for others who might be interested. The stories aren't making the National news in numbers due to the "predictable" spring-blend switch increases, but local papers are covering the change and then some. - Ming

Gas Price Hike of 33 cents in last four weeks
Harrisonburg - WHSV
Reporter: Lorilee Victorino
3/2/07

The cost of fuel in the area shot up about 33 cents in the last four weeks. This is the time of year when gas prices begin to rise but the sudden jolt at the pumps is hard for many people.

"It's disturbing to me when they hike prices unexpectedly. you see very predictable increases come spring, at the end of summer, sometime it makes it difficult to manage finances," said Mike Shelton, Harrisonburg resident.

Exxon mobile posted record profits for 2006 of 39 billion dollars due to high prices.

"I think it's unnecessary, first of the year when the petroleum companies boasted a profit margin of billions of dollars, I don't think it is necessary for customers to absorb additional increase in gas prices." said Harrisonburg Sandra Gee.

According to AAA, during the spring, refineries switch their winter blends to summer blends, which are more environmentally friendly and more expensive to produce.

Source + Video: http://www.whsv.com/news/headlines/6284532.html

Michigan State Police asked to cut gas use by 20% amid budget crunch
3/3/2007
The Associated Press

LANSING, Mich. (AP) — Michigan State Police troopers are being asked to drive about 20 percent less to save $2 million by Oct. 1 and help the state deal with a hole in its current budget.

Lt. Jim Shaw, commander at the State Police post in Jackson, said the effort to cut gas use won't hurt public safety. Last year, the State Police put 35 million miles on a fleet that cost $14 million to run.

"We don't want people thinking when they reach a certain mileage, they park the cars and go home," Shaw told the Detroit Free Press for a Saturday story.

But Lt. Roderick Williams, commander at the Metro North State Police post in Oak Park, said the mileage limit means his troopers are less visible to the public. He said he has taken two patrol cars off the road.

"We're still responding to emergency runs like crashes, but we're not patrolling as actively," Williams said. "We're making every effort to reduce our mileage and save gas."

Source: http://www.mlive.com/newsflash/regio...t=newsmichigan

March 02, 2007
What's driving gas prices?
By WAYNE STEWART
The Palestine Herald, TEXAS

PALESTINE — Anybody noticed gas prices lately?

In early January they were under $2 per gallon. Since that time they have risen about 12 percent to around $2.19 per gallon with a few places a little higher or a little lower.

If anybody ever watches the local news shows you will notice they go out and talk about high gas prices, but I get frustrated because all they ever ask somebody is if they think the price of gas is too high.

Not surprisingly, the answer is always yes, with a single exception shown of a man who owns stock in an oil company.

To me, that’s junk journalism. I could care less about what other people think about gas prices. Their opinion is irrelevant — it is their actions that speak the loudest. Sure, gas prices are high, but are they changing their buying habits.

I want to know “why” gas prices have gone up a little recently and a lot over the past few years.

Describing what drives gas prices is complicated at best — so in my best country way I’ll try and muddle through it.

First, there is supply and demand. When supplies get tight, that means resource gets scarce and consumers have to pay more for it.

A lot of us may think with the recent Middle East crisis that much of the problem has been caused by interrupted supply — while others look at all the SUVs on the road getting 12 miles per gallon and say the high prices are caused by a demand-pull inflation.

There’s also other groups out there that just blame the oil companies.

The oil companies are an easy target, but they are more like beneficiaries of the current oil-price prices rather than instigators of it.

In the late 1990s when gasoline prices were extremely low (below 80 cents a gallon in parts of Houston) oil companies were in the doldrums. That’s not to say they weren’t making money, but in household terms — they were just getting by.

Sometimes it seems as if gas prices just change on a whim. Well, that’s because they do. Gasoline, just like corn, is a traded commodity. Everyone knows that if a drought kills half the corn crop the price is going to go up.

Also, if demand gets really high, the price of corn will go up — like it is now with the burgeoning ethanol industry. The converse is true, if a bumper crop is brought in but nobody’s buying, then prices will plummet.

So, just like corn, gas prices can be at the mercy of commodity buyers. If a commodity buyer starts getting nervous about tight supplies (even if his nervousness is unfounded) then he’s going to start buying all he can for his client. That in turn drives others to do the same and a vicious cycle ensues where panic pushes prices far beyond what they normally would or sometimes should be.

This type of scenario is what happened after Katrina hit New Orleans causing oil and gasoline prices to skyrocket. Though New Orleans’ refining impact on the nation was relatively small, the perceived lack of refining capability caused buyers to panic which caused the sharp spike in prices.

It seems like it is an arcane process, but it’s the best process in the world. Just as we have experienced some really high gas prices, we also have seen some really low prices not that long ago. In a market driven economy these things tend to equal themselves out.

Source: http://www.palestineherald.com/cnhi/...yword=topstory

AAA: gas prices spike up 14 cents
By ANDY HAMILTON
Dowagiac Daily News
Friday, March 2, 2007

NILES - Scott Tyler said rising gas prices are not driving customers to purchase smaller or more fuel-efficient vehicles from Tyler Automotive.

"We haven't' seen any real general trend," Tyler said. "We continue to experience selling the same mix of vehicles that we usually do. There hasn't been any new emphasis from the public on small vehicles as a result of the gas prices."

Fuel prices in Michigan leaped nearly 14 cents per gallon in the past week, according to AAA Michigan's Daily Fuel Gauge Report at fuelgaugereport.com, which takes into account all of Michigan's approximately 2,800 service stations.

The average cost per gallon of regular gasoline in Michigan on Thursday was $2.486, about 14 cents more than one year ago at this time.

Prices for regular unleaded in Niles on Thursday ranged from $2.42 to $2.50.

"Basically that's because the crude oil prices are going back up," said Nancy Cain, a spokesperson for AAA Michigan. "Right now the crude oil per barrel price is the highest since mid December."

Cain said another contributor to the rise in fuel prices could have been the plummeting U.S. stock market earlier in the week. And, she added oil refineries have begun shutting down for the change over from preparing winter blends to summer blends of gasoline.

"The Midwest part of the county did not have much of a winter until recently and demand for heating fuels now has gone up," Cain said. "Typically they tend to come up this time of year," and peak mid summer.

Cain also said if more oil refineries are damaged, such as in 2005 with hurricanes Katrina and Rita, fuel prices could rise.

"All the indications are gas prices are not likely to come down too soon, and they're likely to go up a little bit," Cain said.

Despite the jump in prices, and the increased traveling in the summer months on the horizon, Jack Wieging of Tyler Automotive sales department said he talks with very few customers who ask about smaller, more fuel efficient vehicles. He also said there aren't too many people asking a whole lot about alternative fuels, like the ethanol blend E85.

Source: http://www.dowagiacnews.com/articles...ws/dnnews4.txt

[Caleb02]

i say higher gas prices should be a good thing. first of all lets look at Europe, they pay around 5-7 us dollars per gallon of gas. Since gas is at least twice as expensive in Europe people plan how they drive, ie if you go to the grocery store and forget the milk, in america you would just drive right back even if it is a twenty mile drive round trip. In Europe if you forgot the milk one would just wait until the next time they are in that area again and not just drive for the sake of driving and wasting gas. Also higher gas prices due to taxes would also be an awsome thing, since we could pay off the national debt in about 6 month is gas was about 7 dollars a gallon. Also instead of a flat tax per gallon we should also implement in whole the test in the pacific northwest where there is a special device in your gas filler area that tells the pump how many miles you driven and at what times, thus you would also have a use tax also. i propose this use tax go to research better cars with sub zero emmissions that actially clean the air as we drive, thus the goverment gets more money for use tax and also the gallon tax, and you clean the air!!! also pumping your own gas should be illegal, like it is in new jersey, which can not charge the full service price in the state they must charge only the self service price that other states charge.

[gardnet1]

Not good For F-150 or Ram as they are less fuel efficient than the Silverado and Sierra.

[Hitman1970]

It went from $2.06 to $2.33 for regular in a weeks time in central Virginia. I am TDY for a couple of months right now near Petersburg.

[Relik86]

Ha... I've seen the prices go up 18 cents a LITER around here

[GrandPrixGt02]

Ol' G.W. trippin again. I'll be glad when this whole war b.s is over.

[eag]

Up $0.50 here (WV)

[SUPERBADD75]

Originally Posted by Caleb02

i say higher gas prices should be a good thing. first of all lets look at Europe, they pay around 5-7 us dollars per gallon of gas. Since gas is at least twice as expensive in Europe people plan how they drive, ie if you go to the grocery store and forget the milk, in america you would just drive right back even if it is a twenty mile drive round trip. In Europe if you forgot the milk one would just wait until the next time they are in that area again and not just drive for the sake of driving and wasting gas. Also higher gas prices due to taxes would also be an awsome thing, since we could pay off the national debt in about 6 month is gas was about 7 dollars a gallon. Also instead of a flat tax per gallon we should also implement in whole the test in the pacific northwest where there is a special device in your gas filler area that tells the pump how many miles you driven and at what times, thus you would also have a use tax also. i propose this use tax go to research better cars with sub zero emmissions that actially clean the air as we drive, thus the goverment gets more money for use tax and also the gallon tax, and you clean the air!!! also pumping your own gas should be illegal, like it is in new jersey, which can not charge the full service price in the state they must charge only the self service price that other states charge.[/b]

we shouldn't be taxed twice for anything, including gas. why should i pay tax on gas and then be taxed to use it as well? that doesn't seem very American to me. it almost seems unconstitutional....

i don't think it's all bad that gas prices are going up, especially considering the fact that gas is still cheaper here than most other places in the world, and the higher prices are running people out of big trucks and back to cars, but it is a bit of a strain to many people. look at it this way; in most areas, the further away from the city you live, the cheaper it is. you find a lot of lower income people live further out and have to drive longer distances to work every day. the rising gas prices are therefore hardest on the people that make the least money, making their burden even heavier. i'm no socialist, or liberal, or anything like that, but i do think that for the economy's better interest the gas companies need to balance this very delicately. gas is a commodity that most people need, and it's not like food in that we need it to live, but most do need it in some sense. raising the prices too much could put a strain on the economy because it would cause people to save money elsewhere just so they can fuel their vehicles that they must have to go to work (and the store, and school, etc.). i don't exactly thing the government should step in on this, but they do need to keep an eye on it. it's great that Exxon-Mobil is making money, but they should make sure not to kill the rest of the economy while doing it.

[appman]

$2.69 for regular in the Buffalo area. Last week it was $2.39 OUCH

[Caleb02]

Originally Posted by SUPERBADD75

okay, first of all, the last line isn't appropriate here. please watch what you type here, this should be a family environment.

secondly, we shouldn't be taxed twice for anything, including gas. why should i pay tax on gas and then be taxed to use it as well? that doesn't seem very American to me. it almost seems unconstitutional....

i don't think it's all bad that gas prices are going up, especially considering the fact that gas is still cheaper here than most other places in the world, and the higher prices are running people out of big trucks and back to cars, but it is a bit of a strain to many people. look at it this way; in most areas, the further away from the city you live, the cheaper it is. you find a lot of lower income people live further out and have to drive longer distances to work every day. the rising gas prices are therefore hardest on the people that make the least money, making their burden even heavier. i'm no socialist, or liberal, or anything like that, but i do think that for the economy's better interest the gas companies need to balance this very delicately. gas is a commodity that most people need, and it's not like food in that we need it to live, but most do need it in some sense. raising the prices too much could put a strain on the economy because it would cause people to save money elsewhere just so they can fuel their vehicles that they must have to go to work (and the store, and school, etc.). i don't exactly thing the government should step in on this, but they do need to keep an eye on it. it's great that Exxon-Mobil is making money, but they should make sure not to kill the rest of the economy while doing it.

You are not being taxed twoice. The first is a sales tax, which is for something that you purchase like a car tire, second the use tax is a tax that is for something that you use, so you controll it, drive less pay less, drive more pay for, it could be used for such things as to replace tolls on the turnpikes and to research sub zero emmission cars that clean up the air. also nudity is othing to people in Europe, so why are people upset over nudity in America after all we are born naked, and should be buried naked also.

[stevecmh]

awww and here i got used to 1.97 for a few days.. ha

all i ask for is 2 bucks a gallon its 2.51-2.57 in SE Wisconsin for the reformulated crap we get here.

[Maxxer442]

Too bad if its high in Europe. Are we in Europe? This country uses more gasoline than anyone else in the world, it should be cheaper here. I agree with around $2, but $2.50 and above is ignorant, especially when it rises that much in 2 days. And don't blame this on Bush, thats even more ignorant.

[Caleb02]

Americans should be proud to pay 8-10 dollars a gallon for gas!!! We could use it to pay off the national debt and to fund health care, since autos do cause cancer thus increasing the health care costs on other people. also we should sue the auto companies like california is doing for killing mother earth and also the auto campanies should be held to the highest for murder, when the cars they build kill people. To me the auto companies are liable because with out the auto there would be no auto killings this would kind of like the new york city law suites on gum companies.

[SDRacing]

Originally Posted by Caleb02

Americans should be proud to pay 8-10 dollars a gallon for gas!!! We could use it to pay off the national debt and to fund health care, since autos do cause cancer thus increasing the health care costs on other people. also we should sue the auto companies like california is doing for killing mother earth and also the auto campanies should be held to the highest for murder, when the cars they build kill people. To me the auto companies are liable because with out the auto there would be no auto killings this would kind of like the new york city law suites on gum companies.

And just what are you smoking??? Please share it so I can pass out and not have to read any more of your ignorant posts!!!!!!!!!

[SUPERBADD75]

Originally Posted by Caleb02

You are not being taxed twoice. The first is a sales tax, which is for something that you purchase like a car tire, second the use tax is a tax that is for something that you use, so you controll it, drive less pay less, drive more pay for, it could be used for such things as to replace tolls on the turnpikes and to research sub zero emmission cars that clean up the air. also nudity is othing to people in Europe, so why are people upset over nudity in America after all we are born naked, and should be buried naked also.

nudity isn't the problem, it's the way you made your statement. referring to what you referred to in the way that you did is just slightly inappropriate.

as far as the use tax, the way i see it, it's taxing something twice. if i buy it, i've paid tax on it. it's obvious that if i'm going to buy something, i plan on using it, who cares when or how fast? a "use tax" is just another way for the governement to control what you do, and it's not right. if i want to drive all over town and burn an entire tank of gas in a day, i shouldn't be charged by the governement for it. taxes are already out of control, and the government already has too much to say about what we do. why should they control how much we drive with another tax? it's a bunch of crap. if they want toll roads, fine, i can avoid those, but taxing me to use my car is going too far.