Price of Gasoline, Fuel Efficiency News Roundup

[Ming]

The news is flooded with stories on high gasoline prices - here are a few of note. If you see any others that you think are worth discussing, please add them to this thread. - Ming

National price of gas at all-time high
www.sheboygan-press.com
5/15/07

The U.S. average for a gallon of regular gasoline was $3.073 Monday, up less than a penny from Sunday, when the record was first broken, according to motorist club AAA and OPIS. Adjusted for inflation, the record is $3.223 in today’s dollars set March 1981, according to the Energy Department.

The nationwide average price at the pump Monday was up 24 cents from a month ago and 17 cents higher than this time last year, according to AAA.

Source: http://www.sheboygan-press.com/apps/.../70515031/1973

Gasoline Headed for $4.00 a Gallon
Prof. Peter Morici
The Global Politician
5/15/2007

In April, gasoline prices rose 29 cents or 11 percent. More automobiles and more horsepower in the vehicles Americans drive are pushing up gasoline demand, while supplies of refined products remain relatively stagnant domestically and scarce globally.

U.S. refining capacity and stocks are stretched thin by rising domestic demand and U.S. environmental policies, and pressures from export-driven growth and inefficient petroleum use in China and elsewhere in Asia soak up additional overseas supplies as those come on line.

U.S. gasoline stocks are below 2006 levels, and this summer the average price of gasoline could easily rise above $3.50 a gallon, nationally, and $4.00 a gallon in California. Currently the average price is $3.14 per gallon, nationally, and $3.50 in California.

Surging gasoline prices will push up sharply average consumer price inflation in May and June. Drivers my get headaches from $75 dollar fill-ups, but consumers strapped by higher gasoline prices will either have to borrow more or spend less. My bet is they will borrow more through the summer.

Inflation hawks within the Federal Reserve can offer Chairman Ben Bernanke few effective options other than to ride out gasoline price inflation. U.S. environmentalists and Democrats in Congress will not abide new refining capacity, and it cannot be brought on line quickly. The ethanol program is a high-cost, low growth solution to dependence on foreign oil. It appeals to farm state Senators, but it is a very costly and inefficient approach that raises food prices to create expensive gasoline.

http://globalpolitician.com/articles...?ID=2808&cid=1

Bush urges cooperation on fuel rules
By DAVID IVANOVICH
Houston Chronicle Washington Bureau

WASHINGTON — President Bush on Monday ordered agencies within his administration to cooperate on creating a new regulation to lower fuel consumption and reduce greenhouse gas emissions.

But the White House doesn't plan to issue a final rule until the very last days of Bush's term in office.

Responding to last month's Supreme Court ruling that the Environmental Protection Agency must take action under the Clean Air Act to regulate greenhouse gas emissions from cars and trucks, Bush has directed his administration to draw up a regulation — patterned on his State of the Union address proposal — to reduce gasoline consumption by 20 percent over 10 years.

That plan called for dramatically expanding the use of renewable energy sources and increasing fuel mileage requirements for cars and light trucks.

"When it comes to energy and the environment, the American people expect common sense, and they expect action," Bush said in a ceremony in the White House's Rose Garden. Bush's announcement came as AAA reported Monday that the national, average price for regular unleaded gasoline had hit a record of $3.07 a gallon.

http://www.chron.com/disp/story.mpl/...z/4803998.html

Equity firm Cerberus to put most of $7.4 billion into rebuilding Chrysler; To develop more fuel-efficient vehicles
By John O'Dell - Baltimore Sun
Originally published May 15, 2007

Daimler has divorced Chrysler, and there's a new groom in the wings, a private equity firm known for cutting its way to profit but vowing this time to retool and build.

To do so, New York-based Cerberus Capital Management is going to have to push hard for Chrysler to rebuild a lineup top-heavy with gas-guzzling large trucks, sport utility vehicles and V-8 powered sedans. Cerberus bid $7.4 billion for Chrysler, which will be split off from the existing DaimlerChrysler.

The deal calls for continuing joint projects of Chrysler and Daimler's Mercedes-Benz, including work on clean diesels and more fuel-efficient gasoline and hybrid gas-electric powertrains, to go forward. That's a big plus for Chrysler, which will benefit from Daimler's engineering prowess, Toprak said.

Also on the plus side, Chrysler has acknowledged the failings in its lineup and begun to develop new small cars and fuel-efficient engines to help it weather the changing market.

"They do minivans and full-size pickups very well, and they have the Jeep and the full-size rear-wheel drive cars" such as the Chrysler 300 and Dodge Magnum, said George Peterson, president of AutoPacific market research in Tustin, Calif.

"But they don't do well in the front-wheel-drive, mid-size car market. The Jeep Compass and Patriot, the Dodge Sebring, they're rental car plays, and Chrysler hasn't established the sort of product in those segments that's really desirable for the retail customer," Peterson said.

Chrysler posted a $1.46-billion loss last year as it continued pumping out its large pickups and sedans with fuel-thirsty V-8 engines long after soaring gas prices had damped auto buyers' enthusiasm for big vehicles.

http://www.baltimoresun.com/business...ness-headlines

[VCDJ]

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

[prototype66]

Push the E-Flex system to the fleet a.s.a.p.!!

[boydrive]

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

Maybe those "stupid" people driving SUV's are not cheap like you and do not mind paying the price for gas to have what they like!!!!

[New_Mexico_Sunset_on_Rt66]

Originally Posted by VCDJ

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

Ahh, the generalization. Many people (i.e. business owners, large families) need SUVs.

Can we please tap into the resources we currently have in Wyoming and ANWAR? And can we please build a new refinery? We haven't built a refinery in this country in over 30 years.

We can place environmental regulations on the firms that go after the resources.

With that said. Americans still spend less of their expendable income on fuel today, than we did in 1981-1982.

[MNdudeswitz]

The higher the price of gas goes, the better in the long run

[tomcat_cool17]

Gas is $3.49 for regular here today.

[geozinger]

Originally Posted by New_Mexico_Sunset_on_Rt66

Ahh, the generalization. Many people (i.e. business owners, large families) need SUVs.

Can we please tap into the resources we currently have in Wyoming and ANWAR? And can we please build a new refinery? We haven't built a refinery in this country in over 30 years.

We can place environmental regulations on the firms that go after the resources.

With that said. Americans still spend less of their expendable income on fuel today, than we did in 1981-1982.

The refinery capacity exists, some of it has been mothballed since the mega-mergers of the '90's. A few (couple?) have been shut down for environmental reasons.

Why should the big oil companies build more capacity when they can make plenty of money with the physical plant that already exists? It seems they do even better when there's less capacity, that's when the prices really shoot up.

[camaro_freak]

it is time for some government mandates on the production of BIG OIL..

-maintence during the spring ? nope.. you have to do it in winter time.

[Hurricane]

Originally Posted by VCDJ

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

So I am stupid, eh? Well, genius, how would you suggest I tow my boat or my trailer then, along with my wife and four kids? Your Prius isn't going to be able to do that, my friend...

[usa1]

Originally Posted by VCDJ

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

Wow. What a nice generalization.

Here's one for your: I hope you live within walking or biking distance to work and don't own a car. If not, you are stupid.

By the way, turn off your computer and save energy and save us from hearing from you.

Mark

[dratnol]

Originally Posted by camaro_freak

it is time for some government mandates on the production of BIG OIL..

-maintence during the spring ? nope.. you have to do it in winter time.

So they can stop making fuel oil that people use to heat their homes?

I don't think maintence is purely a scheduled act, when a problem happens, it needs to be fixed. The other issue is that spring is when the multitude of fuel blends come out. We need to standardize on fuel blends for the nation to stop this madness.

[CBECK]

Originally Posted by VCDJ

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

SUV owners purchase them for thier needs, not their I.Q. level. I happen to be one of these stupid people you label.

[1G6]

Originally Posted by VCDJ

This is good because all of those people that drive suvs will pay the price now. Now they will pay for their stupidity.

Guess what ... most of us are so rich that it won't matter.

[psece]

I don't care what you drive. Just don't call people names because of what they chose. If you want to drive a Prius, go ahead. Need to drive an SUV. Be my guest.

I am tired of people complaining about gas prices. Here's a thought, don't buy gas. Don't own a car. It is a choice. People can make gas as high or low a priority in the monthly budget as they want. Just stop b**ching about it!

My complaining about other people complaining is now officially done!