Jump to content
Clubplanet Nightlife Community

Gas Prices!!!


elementx

Recommended Posts

Originally posted by bullseye

i heard it has something to do with some fuel refineries in arizona. nyc always gets hit, prices are still reasonable here in jersey.

I filled up in NJ the other night on my way home from my sisters and even the prices out there jumped about $0.20 - $0.30 per gallon...

The prices in NJ are what the NY prices were a month ago...

Link to comment
Share on other sites

A BIT OF AN EXP...

The Basics

How gas prices got so high

advertisement

$2.09 a gallon? From a ruptured pipeline to Venezuelan strife, a confluence of factors keeps fuel costs high as Americans take to the road.

By The Christian Science Monitor

The nation's drivers are suffering from a high-octane case of sticker shock.

From Portland, Ore., where regular gas costs up to $2.09 a gallon, to Forestville, Md., where drivers are paying as much as $1.74 a gallon, consumers are getting drained in their wallets and socked in their tanks.

Nationally, gasoline prices are now 18 cents a gallon higher than they were a month ago, and 31 cents a gallon higher than at this time last year. A search on Gas Buddy.com found a Union 76 in Phoenix posting unleaded at $3.79 a gallon in the wake of a ruptured pipeline. Holy SUV!

"This is like a consumption tax on consumers," says Fred Dixon of the brokerage house D.A. Davidson in Lake Oswego, Ore., where he recently paid $1.95 for a gallon of fuel. He suspects that fuel prices could even dampen retail sales this quarter: "Six weeks of higher gas prices may eat into demand," he says. It could be a hidden drag on the economy."Money 2004.

Smarter, faster and easier

than ever.

Indeed, soaring prices affect almost all Americans, whose 240 million vehicles consume 5.8 billion gallons of fuel each week -- at an extra cost, given current fuel prices, of about $1 billion. If the price hikes hold steady, figures Standard & Poor's chief economist David Wyss, they'll nearly balance the tax cut, at about $60 billion this year.

Why gas prices just won't tank

The current gas spike comes as a surprise to many analysts. On Aug. 8, the Energy Information Administration wrote that gasoline prices would remain stable for the next two months and then decline. Now, Neil Gamson, an energy economist with the EIA, warns that higher prices may still be coming up. "We have some way at the pump to reflect higher spot prices," he says. "How much higher is hard to say because after Labor Day, demand starts falling off and imports could start to come in."

But surprising as they are to some, there are lots of reasons for rising prices.

Crude oil prices have stayed higher than expected, in part because it's taken longer to get Iraq back on line. In addition, about 300,000 to 400,000 barrels daily of Nigerian oil production are curtailed because of local political turmoil. At the same time, Venezuelan oil production has not returned to pre-strike levels. And on top of everything else, OPEC has cut back on quotas, says John Felmy, chief economist at the American Petroleum Institute (API).

The tight supplies coincide with relatively low inventories. Last week, the API reported crude-oil stocks at 279.3 million barrels -- just barely above the level the government considers necessary for the operation of refineries. Gasoline inventories are also low, but home-heating oil levels are starting to rise as companies prepare for winter.

The tightening supply situation may be tied to an improving economy. Some economists believe the nation's gross domestic product (GDP) is now rising as much as 4.5% to 5% annually -- double last quarter's rate. Felmy estimates that for every 1 percentage point increase in the GDP, there is a 0.4 percentage point increase in energy use. This could mean that the energy demand has increased by nearly 1 percentage point.

"There is no question (that) economic growth globally has led to an increased demand for energy," he says.

Drawn to the pavement

In the United States, Americans also appear to be driving more. The beginning of the summer was very wet in the East, curtailing some trips. But now, with a scorching August, people are traveling more, says Gamson.

This can be seen in the parking lot at the Grand Canyon Railroad in Arizona, where business is up by about 15% over last year.

"With terrorism alerts and the economy bad, people are visiting state and federal parks that they would normally not visit if they are going to Rome, Singapore, and London," says Tom Ripp, vice president of sales. "America is just plain driving."

And Americans are driving despite high fuel prices. In the Phoenix area, prices soared when a pipeline ruptured in the middle of a housing development. This reduced the amount of gas flowing into Phoenix by 60,000 barrels per day - over a third of the area's normal daily consumption.

Ripple effect on West Coast

According to Gas Buddy.com, the average price in Phoenix is now $2.10 a gallon, compared with $1.70 nationally.

advertisement

That's the price if you could get gasoline to buy it. Phoenix resident Daniel Duran says 45 percent of the gas stations in the area had no fuel last weekend. "There were fights and three-hour lines," says Duran, the manager of the Pinon Grill in Scottsdale. "My wife and I set our alarm for midnight to go fill up the car."

To meet demand, refiners moved fuel from southern California. But this had a ripple effect up and down the West Coast, raising fuel prices in areas where gas was diverted: Gasoline now costs up to $2.10 a gallon in the San Diego area.

Californians, who drive a lot, consider the result a real nuisance. Donelle Page, a professional harpist, drives about 4,000 miles a month to play at symphonies, weddings, and parties. Recently, the Modesto resident filled up her minivan to the tune of $39. "It has made an extreme difference in my life," she says. "You can't just change your prices because your costs are up."

Link to comment
Share on other sites

Originally posted by ladyshady

thank god i dont drive too often

Inflated gas prices means inflated everything prices. Crude runs the world. A few years ago (50-75 years and beyond) Gold ran the world, Now gold is shit, it's black gold -texas tea that everyone wants now. And when the price of crude goes up everything must follow suit since everything runs on either oil deisel or gas.

Link to comment
Share on other sites

Originally posted by therunner

is that right....99cents?!

yessir. i remember being cracked out and taking a walk with my friends past the 76 station at sunrise. on our way past gas was $1, and on our way back it was 99 cents. we thought it was a sign of a good year to come :( .
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...