Hey all, well this is right out of control, how high are these fuel price's going to go to???? We just started to kinda get the economy back on track and now they shove the fuel through the roof....In the last 3 weeks I have lost 3 sales because of it, guys just wont buy anything untill they know what is going on....What is the reason for the high prices in the US ??? Up here in Canada it is just good old capitalizim.....NO ONE says anything so they just stick it to us.....our goverment wont do anything because it's a cash cow for them...but this is unreal......Has anyone heard of anything positive for the consumer or is this the NEW standard ???? Sorry for venting.....Canucktrucks P.S. I forgot to mention that we are paying $2.98 per Canadian gallon of fuel....Gas is $3.98 for a Canadian gallon.....yeah that feels real good thanks......

 

It is pure thievery.
Our government wont do anything either

 

Ask yourself this question?

Q: Why is the price of engine oil unchanged for the most part?

A: ????

If there was a oil shortage wouldn't all oil products go up?
I just bought a 5 gallon barrel of Phillip 66 15W-40 Engine oil for $33.85 and the price only changed $3.00 in the last year! Even with the increase of price that makes it $1.69 a quart!!!!

Why is Chevron and others reporting high profits margins?

But diesel and gasoline has doubled in price now!

 

The price is relative over the years depending on the value of the inflated dollar, see:

http://oregonstate.edu/Dept/pol_sci/fac/sahr/gasol.htm

 

I was told motor oil prices are set every six months, that's why you don't notice much change.

You have to wonder when year after year the multinational oil companies report new record profits, have they ever missed even one year?

 

Yes, these high fuel costs are going to cause a BIG crash in the economy.

No one will have any money left out of their paycheck to buy consumer goods after buying fuel to get to work.
That in itself might be good- it'll stop/slow down the flow of cheap Chinese goods into this country.

Tourism is going to take a big hit- no one can afford to take the car out on vacation.
Airline ticket prices are going up steadily.

Freight and shipping companies are adding higher and higher fuel surcharges to their rates. Their volume numbers are slowly going down as the rates go up.

Milk and beef prices are going up.
So are utility bills.

Pretty soon we won't be able to afford to purchase anything...

Where will it all end???
Like it was in 1929?

We'll all be in soup lines, and the countries' economy down the toilet, all because the Gov't. can't/won't gain energy self-sufficiency.
We've got plenty of oil beneath our own land, but the enviro-***** and burecrats refuse to drill for it. When will they wake up and smell the coffee??

 

As recently as March, 1998 crude oil ran $14.33 per barrel and today's price is about $40.00 per barrel. That's a near 300% increase. If the cost of the raw commodity has gone up that much why is it gouging if the cost of the end product is up by a similar amount? Yes, oil companies are trying to make as much profit as they can (just like any company would do) but to claim that the current high prices are simply a result of 'pure thievery' is ignoring a lot of the facts.

Goverment regulation of oil prices was ended during the Reagan Administration, since then it is a free market... with all the advantages and disadvantages that come along with it. Which do you want... a free market, or government regulation? You can't have it both ways...

 

NO, I do believe that...... It is PURE THIEVERY.....There is NOTHING that goes up 300 % in any other business in that length of time, but even if it did, we here in CANADA have seen fuel price's go up over 90 cents a gallon OVER NIGHT.....I guess the raw material goes up that much overnight as well ???? Sounds like ******** to me.....

 

Let's do a little exercise. Just to make the math easy, assume that crude oil is $42.00 per 42 gallon barrel - it's actually been at or around $40.00, so that isn't far off. At $42.00/barrel, the cost of 1 quart of crude oil is $0.25. If motor oil sells for $1.25/quart, the crude oil/motor oil price ratio is 20%. Most of the cost of motor oil is in the refining, additives, packaging, advertising, etc.

Now, 1 gallon of crude oil costs $1.00. If diesel fuel is selling at $2.00/gallon, the crude oil/diesel fuel price ratio is 50%. In truth, if (again, to make the math easy) federal, state and local fuel taxes are $0.50/gallon of the $2.00/gallon shown, the actual product selling price is $1.50/gallon, and the crude oil/diesel fuel price ratio is 67%.

This isn't to imply that 1 unit of crude oil produces 1 unit of refined product. It just illustrates that some products will follow the price of crude oil more closely than others where crude oil price is not as large a percentage of the finished product price.

Rusty

 

That's pretty much a farce.
Though we may have lots of domestic oil left most of the easy to extract supplies are gone, what's left is expendsive oil. Just look at the hassles involved drilling in the frozen tundra or offshore. The high price of middle-east crude is the only reason many domestic petro companies are able to stay in business. Their cost of production wouldn't break even at lower world prices.

 

I for one will not be going anywere this summer,cookouts in the backyards,my stuff will sit,I am not going to bow to these thieves who have us over a barrel,my boat will sit and my camper will sit,I have already parked my wifes F150,unless an emergency arises,it will stay parked along with everything eles I have,I for one willnot contrubute to filling the fatcats pockets.

 

That's certainly your choice. As far as I'm concerned, life is too short (maybe that's a realization that comes from being 56 years old ). We'll be hitching up the 5th wheel whenever possible and hitting the road. If ya wanna play, ya gotta be prepared to pay. YMMV.

Rusty

 

"Bush said he would use diplomatic pressure to force OPEC to increase production. "

Anyone seen that happen?

I'm sure he'll jump right on that promise... ohhhh let's say... Octoberish... just in time to attempt to get re-elected...


Here's the rest of the transcripts in case anyones interested...


http://www-cgi.cnn.com/TRANSCRIPTS/0009/20/ip.00.html

 

Prices here 82.5 cents per litre (3.176 per USGal), regular Unleaded
62.9 cents per litre (2.421 per USGal) Diesel..

There is one other observation at least around our area. The differential between gas and diesel is astounding.. It used to be that diesel was only about $0.05 per litre under gasoline prices. Now its closer to $0.20 and in Med Hat about $0.35 (roughly $1.34 per us gallon DIFFERENCE). If the crude oil prices were the factor, the "refined" products should go up proportionately. They do not.

I feel sorry for the gas burners..

That thing got a Hemi?... Too bad for you.. 15 MPG must suck...LOL.

J-eh

 

Uhhh, yes, there is, in fact just about everything else. Perhaps not 300% in every case but until this recent price spike the cost of gasoline has lagged far behind general inflation, and still lags even now. I'm not trying to defend any particular practices of any particlular retailer as I'm sure there are some shady things going on here and there as always seems to be the case in the business world, but you need to look at the big picture and it just doesn't support conspiracy theories. We can beat our chests and demand cheap oil as a birthright but that won't change the facts...