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Retail gasoline, diesel prices set records
Mon Apr 14, 2008
By Tom Doggett



WASHINGTON (Reuters) - The average price U.S. drivers paid for gasoline climbed to a new high of $3.39 a gallon after rising 5.7 cents over the last week, the federal Energy Information Administration said on Monday.

The national average price for regular, self-service gasoline is up 51.3 cents from a year ago because of high crude oil costs, which on Monday traded at almost $112 a barrel at the New York Mercantile Exchange.

The price of crude oil accounts for about 70 percent of the cost for making gasoline.

Gas Price Forecast Grim: $4 a Gallon This Summer



WASHINGTON, DC, (ENS) - Gasoline prices could top $4 a gallon this summer, with prices expected to average $3.54 over the summer months, and a peak, monthly average of more than $3.60 in June, predicts a new report by the federal Energy Information Administration, EIA, issued Tuesday.

The EIA numbers for diesel are even higher, with a predicted average of $3.90 during March and April, and a summer average of $3.73, an increase of 88 cents over the 2007 summer average.

At these prices, the average cost to fill up a 300-gallon tank in a typical long-haul tractor trailer would reach $1,170.

U.S. consumption of liquid fuels and other petroleum is expected to decline in 2008 by about 85,000 barrels per day as a result of the economic slowdown and high petroleum prices, the EIA said. "After accounting for increased ethanol use, U.S. petroleum consumption is projected to fall by 210,000 barrels per day in 2008.

As part of a three-point plan to alleviate the strain on consumers and move America towards renewable alternatives to oil, Chairman Markey called on the Bush administration to stop filling the Strategic Petroleum Reserve at the rate of 70,000 barrels per day to send a signal to oil speculators.

He also called on the oil companies to increase their investments in renewable alternatives to oil and to drop their defense of billions in tax breaks.

"While the financial commitment that American families are being forced to make to drive their cars and heat their homes keeps rising every month, Big Oil's only commitment seems to be to opposing the renewable energy investment package that would provide American consumers with relief," said Markey.

Last week, Chairman Markey and the Select Committee held a hearing with top executives from the world's five largest oil companies, which brought in over $123 billion in profits last year and spent more than $50 billion on schemes to prop up their stock prices.

At the April 1 hearing, Markey called on the companies to invest 10 percent of their profits into renewable energy alternatives to oil, noting that the bottom 20 percent of wage earning families in America are now spending 10 percent of their income on gasoline due to the current high prices.

The five largest oil companies spent only about one percent of their profits on alternatives last year, with ExxonMobil making more than $40 billion in profits, while spending just $10 million on research into alternatives to oil.

The companies are currently defending $18 billion in tax breaks that they receive but that Congress is trying to shift towards renewable energy.

J. Stephen Simon, senior vice president of Exxon Mobil told the Select Committee that currently the energy industry pays record levels of taxes.

"While our worldwide profits have grown," he said, "our worldwide income taxes have grown even more. From 2003 to 2007, our earnings grew by 89 percent, but our income taxes grew by 170 percent."

SOURCE

 

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diesel has been between $4.00 and $4.18 a gallon here in Michigan for the last week or two! If it gets any worse i might have to go out and buy several hundred gallons at the current price and long term store it in a tank or somthing and keep it for personall use!:p: It would be a good story to tell my neighbors in two years that i am still using gas the only cost $3.45 a gallon since im sure prices will be 5$ plus by then.
 

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I paid $4.29 a gallon for diesel just over a month ago. After hauling the trailer and refueling the truck, the diesel returned to the barn to await it's next duty as a trailer hauler only. Cripes - they just jumped the price of gas again yesterday to $3.55. Cost me $70 to fill the Tahoe. I'd like to send that down the road, but my wifes says no new vehicles.
 

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Premium has been kissing $4 for about a year now down here in Del Mar, but just last week regular went up again and is 4.09, Premium is now 4.29(what i have to buy :() and diesel is a shocking 4.69:eek:

And you don't even want to know what Street Blaze (101 octane) costs around here.

Remember, the price of gas isn't going up as much as we think it is. A big part of this is the Dollar is getting weaker and weaker.
 

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I paid $4.29 a gallon for diesel just over a month ago. After hauling the trailer and refueling the truck, the diesel returned to the barn to await it's next duty as a trailer hauler only. Cripes - they just jumped the price of gas again yesterday to $3.55. Cost me $70 to fill the Tahoe. I'd like to send that down the road, but my wifes says no new vehicles.
Well my friend has nissan frontier and he wants to trade it in for honda fit. It cost him about $70 to fill it up. Honda fit probably about $30. IF you drive alot it pays off to get a new vehicle. This is why suvs and trucks will be gone pretty soon. Nobody is crazy to pay almost $100 to fill their vehicle.
 

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Well my friend has nissan frontier and he wants to trade it in for honda fit. It cost him about $70 to fill it up. Honda fit probably about $30. IF you drive alot it pays off to get a new vehicle. This is why suvs and trucks will be gone pretty soon. Nobody is crazy to pay almost $100 to fill their vehicle.
Canadians have been paying $100+ to fill trucks and SUVs for years. Nothing will change until it costs $100 to fill a mid sized sedan.
 

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I just adore Congress' hypocrisy. They call in the heads of private sector industry to explain their profits, which is not the business of the federal government outside of the US Treasury as it relates to taxes. They then ask them to spend 10% of their profits on the development of renewable alternatives to oil, which again is not the business of the federal government to tell a company how to invest its profits.

On the flip side, there's little mention of Congress' deployment of tax dollars used to help these companies "reseach alternatives to oil." And there's almost no mention of the 18.4-cent federal gas tax and 24.4-cent levy on diesel fuel, which are under Congress' purview. Federal and state taxes levied on each dollar of gasoline sold in this country about equal the costs of refining and profits for the integrated oil companies. Sounds like the government needs to pay attention to its part, and oil companies need to pay attention to their part.

I think the government needs to develop ways to stay out of this and many other issues. They tend to worsen situations rather than help it. And this postering and pretending to do something to gain favor with voters is really old.
 

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And I betcha $4.00/gallon gasoline (and higher) will do a whole lot more than CAFE in terms of actually moving automakers to push the envelope of fuel economy. Consumers will demand it and reward those companies that most successfully leverage their various needs.
 

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I agree they should reduce stockpiling on oil and gasoline... that might jar the futures traders out of just counter trading the dollar.

The demand for refined product is going down... in fact it looks like demand for gasoline is the lowest it has been in years. Refiners are tweaking what they produce to get the best profit... right now, their profit margin in gasoline is lower, so they are producing less and this puts upward pressure on the price of gas... even though we are using way less. They have been making more diesel because it's more profitable right now... so I expect the price of diesel might ease as gasoline goes up. Then at some point, refiners will switch to making more gasoline as it becomes more profitable. The past few years, this yearly peak in gas prices happens sometime in May. They use all kinds of reasons like maintenance, blends, blah, blah to justify it, but it is really manipulation for higher profits and doesn't always reflect consumer demand.
 

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:tired:

Wake me up when something is actually news worthy. I am not attacking Ming at all. I am attacking the news people that continually write this stuff. I mean come on we see an article just like this every week.... We Can't Change It!!!!
 
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