Here is a story I just read. Yet another reason to buy a diesel, although if gas prices jump like this, diesel prices will rise too.


Summertime shocker: Gas could hit $3 a gallon

January 16, 2004

BY LUCIO GUERRERO Staff Reporter Advertisement


Drivers of SUVs and other gas guzzlers may want to keep their vehicles parked over the summer.

That's because some experts are saying that gas could -- gulp -- hit the $3-a-gallon mark.

"It is not only possible, it is probable," said Fred Rozell, director of gasoline pricing for Oil Price Information Service, which tracks and reports on the oil industry. "In the summer, we consume more gasoline than we produce.

"[This year] we won't have that extra supply to help us."

Winter weather, bolstering demand for heating fuels, already has cut U.S. crude stocks to the lowest level since 1975.

And with simple economics -- in particular the supply and demand rule -- consumers can expect the price of gas to reach record levels. Those prices would especially be possible in Chicago, where government regulations require gas stations to supply more costly reformulated gasoline to reduce smog.

"This could be the year that gasoline prices start to change the way people behave," Rozell said. "They may drive less or look to buy more fuel-efficient vehicles and get rid of their SUVs."

That $3 threshold shouldn't come as a big surprise to pump watchers. Over the last few days, prices at the pump have done more than just trickle upward --they have soared. Prices have surged more than 7 cents a gallon in the last three weeks.

Several factors are being blamed for the uptick, including rising crude oil prices, a weaker U.S. dollar, colder weather that drove up demand for home heating oil, and two U.S. gasoline reformulations, said analyst Trilby Lundberg.

Earlier this week, the all-grades average retail price of gasoline was 8 cents higher than it was at this time last year. The national weighted average price of gasoline, including taxes, at self-serve pumps was about $1.55 for regular, $1.65 for midgrade, and $1.74 for premium.

But those numbers are only expected to rise.

According to the U.S. Energy Information Administration, the forecast for prices to remain stable through the summer banked on crude oil being about $30 a barrel. In the last week, the price of crude oil has flirted in the mid-$30s and could rise further.

Retail analysts say gasoline costs rise about 2.5 cents per gallon for every $1-a-barrel increase in the price of crude oil. And combine that with near record low inventories -- some of the lowest since the long-line days of 1975 -- and drivers may want to learn that CTA map.

 

we are being ripped off again i dont believe a word of it, that we are running short anyway, beside there own political agenda one of the reason we are over in the mid east is for the oil. I say if they dont want to sell us more we can stop sending food. and the tree huggers should stop crying and we should use our own oil and coal and resources instead of shipping it else where because they say it emits too much polution. One nation in the world practicing our good emission practices will not make a difference in the long run why should we as americans take responsibility for everyone else again. maybe while we are at it we should stop them from defoliating the rain forests before we have no oxygen left and any chance for a cure from some plant that may have existed disapears.

Ok im done

 

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Won't be just pump gas/diesel that goes up. Manufacturing, trucking, anything that uses fuel will go up. And the consumer will pay.

 

It's not the crude oil supply that's driving the price up in the US, it's the shortage of refining capacity. The US is out stripping the refining capacity for fuel. Many of the US refineries are undergoing renovations to increase capacity but at the moment it's causing refining capacity issues. It's sad that in the last 10yrs or so the smaller refineries has been shutdown because of not being cost effective and regulations. And now we need them the most.
I think it's time for the government to step up to the plate and mandated a bio diesel initiative to ease the burden of oil importation and refining.

MikeyB

 

Maybe thats all the more reason to start buying bio, and the gassers burning corn.
That way, when you go to a party, you have a keg of corn alcohol with you

Would this mean you'd have to be 21 to buy fuel

 

Unfortunately I see the prices still going up and up and up ...


U.S. Gasoline Prices Hit a Record High

Mar 14, 8:11 PM (ET)


CAMARILLO, Calif. (AP) - Prices for all grades of gasoline rose 1.34 cents in the last two weeks to a record high nationwide average of $1.77 a gallon, according to a study released Sunday.

Gas prices have jumped by nearly 26 cents so far this year, and while they won't be falling by that amount any time soon, they aren't expected to rise much higher, according to the Lundberg survey of 8,000 stations nationwide. The survey was conducted Friday.

The previous combined average record high was $1.76 in May 2001.

Analyst Trilby Lundberg said the latest spike reflects the rise in crude oil prices and an increase in refinery work to prepare for greater spring and summer gasoline demand.
(
OPEC declared earlier this year that it would reduce official oil production by April 1 and crack down on those countries exceeding the level.

"Where crude oil prices go next - whether they push or pull on gas prices - is OPEC's guess," she said.

Lundberg said work at the refineries is nearly complete.

"The pace of the pump price hike has slowed and prices are dropping on a spotty basis around the country," she said.

In California, prices remain higher than the rest of the country due to the state's strict environmental regulations and sales tax on gas pumps. Still, pump prices dropped nearly a penny in the last two weeks to $2.10 per gallon.

The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.74 for regular, $1.84 for midgrade and $1.92 for premium.

 

Paid $1.77 for diesel yesterday......

For CA, that's dirt cheap. $2.13 a gallon down the street......

 

In the news they showed some places in Ca at 2.43 a gallon!!!

 

Fuel rates like that would *ALMOST* mitigate the risks of running the red stuff.

 

I bet, as prices increase, so do the number of "dippers" out there testing tanks.

Oil companies have us over a barrel, they know we'll pay whatever they charge.

1.69 and holding for about 2 weeks.


phox

 

Gas prices here actually went down about 7 cents a gallon this week. Diesel has been fairly stable at $1.54.

 

Shell beach Ca. unlead premium at $2.49 per gal. Camarillo is fairly close to here, if its only $1.77 Ill take a 55 gal drum and go fill it up for the misses. were being robbed again in my opinion, at least diesel prices are going down. $1.89 a gal

 

if semis just clog up the interstates and shut down for two weeks diesel prices will go down. not too much concerned about gas as i drive a diesel truck but if even everyone shut down for while it would probably cause big brother too do something huh? just my two coppers

 

There is no way that this is anywhere near fair. I wish that we as consumers had more power to dictate what we would pay. The majority is really too silent here.

Words cannot express the outrage that I feel against these oil cartels. They make record profits and we pay for it. There should be some way that we can put a pinch on, but they know that we have to have fuel to do anything.

The only thing that makes it worse is that the government, for all the things they fail at, cannot do anything about this. Granted, I am the first one to say that the govt is way too intrusive the way it is, but please.

And to be over a barrell, so to speak, by a foreign group of sheiks that have no cares except where there next billion is coming from.

What can we do?!?!?!?!?