April 21, 201114 yr High gasoline prices prompt Justice Department to eye energy industry Washington (CNN) -- Prodded by growing public frustration over sharply rising gasoline prices, the Justice Department on Thursday announced the formation of the Oil and Gas Price Fraud Working Group to ensure consumers are not victims of price gouging. Attorney General Eric Holder made no secret the move is a direct response to public angst, not to current evidence of any illegal conduct. "Rapidly rising gasoline prices are pinching the pockets of consumers across the country," Holder said in a written statement. Read more at: http://www.cnn.com/2011/US/04/21/holder.gas.prices/index.html?hpt=T2
April 21, 201114 yr It's been dropping in Columbus; $3.65 now. It will go back up again soon. The wholesale price is back up to 3.28 +/- so add 60 cents or more to come up with the retail price. Wholesale price as in what the gas station pays for gas or refineries or what? I thought gas stations literally made a couple pennies per gallon and really just make their money on people stopping in and buying b.s. snacks or cigs. Isn't diesel just a byproduct from the process of refining oil into gasoline? It's like 4.19 a gallon here! It always seems to be higher than regular gasoline. Is there a tax on it from emiting more pollution or something? This is how California defines wholesale gasoline prices: The average wholesale gasoline price is the average of 13 unbranded and 13 branded wholesale prices at various wholesale fuel loading racks around the state. Check out this site for a nice breakdown of costs associated with the final retail price of gasoline. http://energyalmanac.ca.gov/gasoline/margins/index.html Yes, the tax on diesel is typically higher. And just because it's a "byproduct" doesn't mean it has no value. Obviously it does.
April 21, 201114 yr Wholesale price as in what the gas station pays for gas or refineries or what? I thought gas stations literally made a couple pennies per gallon and really just make their money on people stopping in and buying b.s. snacks or cigs. For most gasoline retailers, wholesale is what they pay at the refinery or from the refinery's supplier. When you look up RBOB gasoline future prices on NYMEX, you are looking the at price being quoted for delivery next month from a refinery or refinery supplier. The only thing a futures contract does is lock in a wholesale price for a retailer. After the retailer buys a futures contract (and doesn't sell it again as a speculator/hedger would do) and takes delivery of the gasoline, it adds the cost of distribution, marketing, taxes and profit margin. Those costs, in total, are typically about 60 cents per gallon in Ohio but they can vary depending on location due to distribution costs and taxes (ie: Hawaii costs more than Ohio because of distribution costs; California costs more than Ohio because of taxes). To read more, go to: http://www.nacsonline.com/NACS/Resources/campaigns/GasPrices_2008/Pages/HowToGetGas.aspx "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 21, 201114 yr Another fuel price impact.... http://www.urbanohio.com/forum2/index.php/topic,15826.msg556041.html#msg556041 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 22, 201114 yr Thanks for the info KJP. Hootenany, I'm not complaining about Diesel prices, it doesn't even affect me in any other way than slightly raising the price of goods that I buy. I know if has a value, I simply wanted to know why it costs more. No need to get defensive.
April 22, 201114 yr ^There are a number of products produced from a barrel of crude petroleum, including gasoline, diesel, and even asphalt. The refinery has a little control over the proportion of each one, so if gasoline prices are high while diesel prices are low, the refinery can produce a little more gasoline and a little less diesel. All of the refineries are continuously adjusting to meet market conditions. At the same time, consumers of petroleum products are always adjusting their consumption to meet prices. (If I am buying a new work truck, should I buy a gasoline or diesel truck?) Distributors including the big shipping companies are always in the market for the buyer with the highest offer. Big producers such as Saudi Arabia are constantly adjusting the amount that they extract out of the ground. Disruptions in the chain, such as Hurrican Ike which shut down most Gulf refineries and ports, send waves through the entire system. The weather affects use of petroleum products, as a lot of folks heat with oil, and more people take trips in good weather. Meanwhile, someone is always trying to make a buck by betting on future prices. There are way too many variables to predict the future price of petroleum products. Analysts did, however, call for $4.00 a gallon gasoline by this spring, and they were right. Short term predictions for gasoline at retail can be made simply by watching the wholesale prices.
April 25, 201114 yr Drill baby drill won't lower gas prices The United States simply doesn't have enough oil to move world markets. Plus, any increase would be offset by OPEC. By Steve Hargreaves, senior writerApril 25, 2011: 7:18 AM ET NEW YORK (CNNMoney) -- Every time gas prices reach record highs the call goes out for more oil drilling. This year it's no different. "The Gulf is ready to get back to work to help create jobs and lower gasoline prices," Washington Republican Doc Hastings, head of the House Natural Resources Committee and a big proponent of more drilling, said last week. The problem is this: While increased oil and gas drilling in the United States may create good-paying jobs, reduce reliance on foreign oil and lower the trade deficit, it will have hardly any impact on gas and oil prices. Read more at: http://money.cnn.com/2011/04/25/news/economy/oil_drilling_gas_prices/index.htm?hpt=T2
April 26, 201114 yr $4 gas returns to Toledo BY DAVID PATCH BLADE STAFF WRITER Four-dollar gasoline has returned to the Toledo area for just the second time ever. Granted, the actual posted price for self-service regular at a growing number of area filling stations Monday was $3.999 per gallon. But that tenth of a penny wasn’t fooling anybody. Read more at: http://www.toledoblade.com/local/2011/04/26/4-gas-returns-to-Toledo.html
April 26, 201114 yr Same in Cincinnati. One gas station - near the international airport in Orlando (the only station out there), has been charging a whopping $5.69 for unleaded. When questioned, he said that he doesn't check other station prices - but it's on the road into the rental car storage facility, and people often forget to fuel up until the last minute... Meanwhile, a station a few miles away sells gas for under $4...
April 26, 201114 yr A friend in Columbus just called me as he drove past a gas station sign: $3.999. It was $3.89 this morning and $3.79 yesterday at the same gas station. This might be part of the reason..... More refineries lose electricity in Texas City, shelter-in-place order reinstated 04-26-2011 08:06 AM EDT |By JUAN A. LOZANO, Associated Press TEXAS CITY, Texas (Associated Press) -- Three refineries, including a BP unit where a 2005 explosion killed 15 people, and a Dow Chemical plant lost electricity in outages that led to shelter-in-place emergency alerts and the cancellation of public schools Tuesday in Texas City. The source of the power outages was still being sought, emergency officials said. A second shelter-in-place alert, advising residents to stay indoors, was issued around 5:30 a.m. Tuesday after a Valero refinery also lost power, Texas City Homeland Security coordinator Bruce Clawson said. READ MORE AT: http://ww2.cox.com/myconnection/cleveland/today/news/national/article.cox?articleId=D9MRBA9O0&moduleType=apNews "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 26, 201114 yr Why gas prices go up much faster than they come down By Bob Sullivan MSNBC Bogger You might have heard over the weekend that skyrocketing gas prices have finally "plateaued." If gas prices were like gravity, you would anticipate they would start plummeting soon. Raise your hand if you expect that. Me neither. While the words "skyrocketing" and "gas prices" often end up in the same sentence, "plummeting" and “gas prices” rarely occupy even the same paragraph. In a perfect free market, prices should float up and down with equal speed. But in our market, what goes up doesn't seem to come down, at least not at once. What gives? We've been told for months that instability in the Middle East spooked the traders who set gas prices, which are almost $1 per gallon more at the pump than a year ago. Prices jumped 30 cents from mid-March to mid-April alone, to an average $3.88 a gallon. What are odds, do you think, that average prices will return to $3.58 by mid-May? Read more at: http://redtape.msnbc.msn.com/_news/2011/04/25/6527434-why-gas-prices-go-up-much-faster-than-they-come-down
April 26, 201114 yr I think the writer of that piece has a case of short-term memory. Oil (gas) prices ratcheted up from $30 per barrel ($2 per gallon) in 2004 to $148 per barrel ($4 per gallon) in 2008. And yes, both "plummeted" in a matter of months by the end of 2008 back down near $30/$2. They've been ratcheting upward again in the years (not months) ever since. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 27, 201114 yr 3.98 at the Shell station across from my house this morning. Very close to $4.00 gallon here, now. Though I think you can still find it cheaper. This price was the highest I've seen it in the area. We'll be at 4/gal for sure in May. Unfortunatly for me, since I have some trips to KY planned for that month.
April 27, 201114 yr Commuting at $4 per gallon expected to strain budgets Written by Anna Sudar Advocate Reporter 6:24 AM, Apr. 27, 2011| NEWARK -- As gas prices creep closer to $4 per gallon, Erin Grigsby is grateful she no longer has to commute to work. When she first moved to Newark, she drove to Port Columbus International Airport every day. But in 2009, she took a job at the Heath-Newark-Licking County Port Authority, a change that saved her time and money....... Close to 50 percent of Licking County commuters agree with Grigsby, according to a commuter survey released Tuesday by Workenomics, an affiliate of the Licking County Chamber of Commerce. The survey found that if gas reaches $4 per gallon, 43 percent of the commuters surveyed would consider finding work closer to home. If gas reaches $5 per gallon, 56 percent said they would try to find a job that would cut down their commute, according to a news release from Workenomics. Read more at: http://www.newarkadvocate.com/article/20110427/NEWS01/104270303/Commuting-4-per-gallon-expected-strain-budgets?odyssey=tab|topnews|text|Frontpage
April 28, 201114 yr ^Yayyyy :clap:. My mother had to go down to Stamford, CT yesterday and she sent me a text saying that she saw a service station where gas was $4.36. I kind of hate that the prices of gasoline is rapidly increasing, but then I love it; to get at the public transit opponents, and to hopefully decrease all of the unnecessary huge SUVs on the road.
April 28, 201114 yr WBNS-TV reporting gasoline at $4.25 a gallon in Columbus. (via Twitter feed). No details beyond that.
April 28, 201114 yr There is nothing to love about what's happening to the price of gas. It's not like tomorrow there's going to be an electric trainline in front of your door, or everyone is moving back to the downtown and inner cities, or private and public investors will start making serious efforts to seek out alternatives. Instead, it's just going to help further our economic depression for the near future, which, who knows, may extend far longer as a result. Discretionary spending will continue going down, people's morale will fall even further, the price of food will continue to escalate, everyone's wallets will get smaller, and nothing will change for the better. Perhaps more people will take public transportation as a result, but that's not remotely good enough compared to how much we are, and will be, suffering.
April 28, 201114 yr ^That's what happens when you rely so heavily on a non-renewable source such as oil for your primary means of energy. The price of gas is dirt cheap compared to the prices that many, many other countries are currently paying.
April 28, 201114 yr TBideon +1. In the long term, higher gas prices may have a salutary impact. In the short term, though, they strain consumer budgets that are already strained plenty, and which are likely to be strained even more over the next four years as governments start to realize that spending cuts alone are a necessary but not sufficient response to public budgetary shortfalls.
April 28, 201114 yr HHS, I don't see your point. Yes this is what happens when every component of our economy depends on oil. That sucks. We all hate it. Well, maybe not oil tycoons and investors, but everyone else. But that doesn't change the fact that we have a kind of symbiotic/parasitic relationship with oil and gas. We can't just cut ourselves off it; otherwise, we die (and I'm not even being that metaphorical). We need to be weaned off it over a period of time (think how heroin addicts are treated with methadone), with other alternatives introduced. And what's happening with the price of gas and oil is not being weaned off - it's an outright shock to the system that is f'ing up our fragile country more than it can handle. What do you think is going to happen to the price of food or medication of gas should hit $6? How do you think that would affect employment and housing or our country in the longterm? Who is going to eat at a restaurant that requires driving more than a few miles? Who is going to donate money to charities if every dime we have is going to gas? We cannot afford yet another punch to the gut - this country has just had too many lately.
April 28, 201114 yr ^^To be fair, this gradual increase in the cost of gasoline IS weening us off oil. We will never be weened off oil so long as it stays cheap (<$4.00 or so). In the short term these price increases hurt, but we'll adapt to it pretty quickly and we'll be better for it. Now, if gas were to spike to $8.00 a gallon tomorrow then I'd be with you and everyone else demanding that something be done... But I have a feeling we're going to hover around $4.00 a gallon for quite a while and that's a good thing in the long term, IMO.
April 28, 201114 yr I'm kind of with HHS on this one. While I don't have the schadenfreude point of view regarding it, we are WAY to comfortable with oil consumption in this country and the fact is that we've been talking about how we need to wean ourselves off. Unfortunately, in this country nothing ever gets done unless we're in crisis mode. It's annoying, but that's just how it is. This is one crisis that we NEED to have sooner or later. I personally prefer that we hash it out right now. I'm fine being dirt poor throughout my 20s and 30s if it means that we'll be on a more reasonable path once my kids reach their teens.
April 28, 201114 yr ^I'm afraid I do have a tiny bit of schadenfreude as someone who has been relatively untouched by fuel prices due to my lifestyle. I'm not proud of it, but it's natural. No once can tell me Glenn Beck won't be at least a tiny bit satisfied if civilization really does crumble in the near future any only the people with large stores of gold and survival kits are able to survive. TBideon +1. In the long term, higher gas prices may have a salutary impact. In the short term, though, they strain consumer budgets that are already strained plenty, and which are likely to be strained even more over the next four years as governments start to realize that spending cuts alone are a necessary but not sufficient response to public budgetary shortfalls. I definitely agree, though I think you should consider extending this same line of reasoning in other threads when home prices come up :)
April 28, 201114 yr HHS, I don't see your point. Yes this is what happens when every component of our economy depends on oil. That sucks. We all hate it. Well, maybe not oil tycoons and investors, but everyone else. But that doesn't change the fact that we have a kind of symbiotic/parasitic relationship with oil and gas. We can't just cut ourselves off it; otherwise, we die (and I'm not even being that metaphorical). We need to be weaned off it over a period of time (think how heroin addicts are treated with methadone), with other alternatives introduced. And what's happening with the price of gas and oil is not being weaned off - it's an outright shock to the system that is f'ing up our fragile country more than it can handle. What do you think is going to happen to the price of food or medication of gas should hit $6? How do you think that would affect employment and housing or our country in the longterm? Who is going to eat at a restaurant that requires driving more than a few miles? Who is going to donate money to charities if every dime we have is going to gas? We cannot afford yet another punch to the gut - this country has just had too many lately. My point is that we have been relying on oil so intensely for so long without devoting considerable efforts to creating alternative sources of energy. We can't rely on oil forever, but people seem to have the same attitude on reducing oil dependecny that many people have on quitting smoking, dieting, exercising, etc; the "I'll get to it (later)" mentaility. Worse is that some people don't consider it important or a problem of theirs. We might as well start weening ourselves off of oil now because the longer we wait, the sharper the effects and consequences will be. As as Hootenany said, it's not like we jumped up to $8 a gallon. In the not so distant past, the price of gasoline was about half what it is now, but many people have adjusted and adapted relatively fine. I think many people currently make a fuss about gasoline prices because it is in the 4 and 5 dollar range,which many people never envisioned occurring.
April 28, 201114 yr Gas Hits $4.15 in Stark County http://www.cantonrep.com/carousel/x540199320/Gas-hits-4-15-a-gallon-in-Stark-County (Dayton) Gas prices reach $4.15 at several area stationshttp://www.daytondailynews.com/news/dayton-news/gas-prices-reach-4-15-at-several-area-stations-1147445.html
April 28, 201114 yr It's $4.15 just about everywhere in Cleveland. The cheapest I saw was $3.999 at a Gas USA el-cheapo station at West 117th and Bellaire. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 5, 201114 yr Gas Prices Your monthly gasoline bill: $368 By Ben Rooney, staff reporterMay 5, 2011: 9:07 AM ET NEW YORK (CNNMoney) -- Round-trip airfare from New York to Los Angeles. More than a dozen dinners for two at Applebee's. Two 16 GB iPod nanos. These are just a few of the things you could have bought if you weren't spending $368.09 a month on gasoline. Prices at the pump can vary widely among states due to a number of factors. More That's the average amount American households spent on gas in April, according to an exclusive analysis of data by the Oil Price Information Service for CNNMoney. The study, which compared average gas prices with median incomes nationwide, also showed that U.S. households spent nearly 9% of their total income on gas last month. Read more at: http://money.cnn.com/2011/05/05/news/economy/gas_prices_income_spending/index.htm?iid=HLM
May 5, 201114 yr Despite the high prices (or perhaps because of them), the US is now a net exporter of oil. Go figure. http://www.upi.com/Science_News/Resource-Wars/2011/05/03/US-becomes-net-fuel-exporter/UPI-38911304425703/ :drunk:
May 5, 201114 yr I think gas station owners buy gas in bulk at a set price, so they need to wait until their tanks are empty.
May 5, 201114 yr How is it possible when oil went down 7% today. Under $100 a barrel. The price of oil does effect the price of gasoline, but it's not instantaneous. But this is good news. Should get a little relief at the pump in the near future. I think gas station owners buy gas in bulk at a set price, so they need to wait until their tanks are empty. I'm not an expert on gas station operations, but this doesn't seem right. Gas stations change their prices daily, if not more often, so I doubt they need to wait until their tanks are empty before changing their price. Do large gas station operators have contracts with refineries (or use their own refineries) to deliver fuel at a market rate which they then increase to arrive at a retail price which they communicate to their stations? Or do owner-operators of gas stations have more control over the price of their gasoline than I think?
May 6, 201114 yr Do you believe that the gasoline prices are directly tied to the futures market? That's how gasoline retailers buy their supplies, by purchasing a futures contract from wholesalers and distributors to lock in a price and a quantity of gasoline. Most buy the "front" contract, meaning the contract for the coming month, unless they think prices will rise in the future, then they buy "long" to lock in a lower price for the future. Many of the airlines, railroads, trucking companies and transit agencies do this for their respect fuel types when they suspect the prices will rise in the future. Some of that creates a self-fulfilling prophecy, but if the the demand isn't there, the price will not rise. And this is not limited to gasoline or oil, but to all bulk purchasers of all commodities and products including everything from wheat to porkbellies. Read up on why this system of futures contracts was created in the 1800s in the first place -- it's a very logical free market-based system. The general public is noticing it only now because oil and gasoline prices are rising dramatically due to the supply-demand relationship being so very tight. And yes I'm sure there are investors trying to benefit or even manipulate this for personal gain. But they are jumping into something much larger than themselves that is only going to grow because of continued demand growth for oil/gas and potentially declining supplies in the next year or two. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 7, 201114 yr Prices have backed off their highs in Columbus - back toward 4 bucks. If we could even week to week or even better month to month stability in gas prices I'd be happy.
May 7, 201114 yr Based on the wholesale/futures price, I suspect you'll see the retail back off to as low as $3.60 in the next few days (probably by the end of the day Monday) unless there's some unforeseen incident in the world. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 8, 201114 yr Summer driving season $5 gas looking less likely now Sunday, May 8, 2011 03:15 AM By Dan Gearino and Mark Williams THE COLUMBUS DISPATCH Breathe easy. Barring some extraordinary changes, this will not be the summer of $5-per-gallon gasoline. A wide array of economists, oil analysts and gasoline retailers say the supply of oil is large enough to keep gasoline below $5, considering that sustained high prices already are leading to a drop in fuel demand. But drivers might need some convincing. "It's breakin' us," said Dominick Borghese, 21, of the Northwest Side, who has little doubt that $5 gas is on the way. Read more at: http://www.dispatch.com/live/content/business/stories/2011/05/08/5-gas-looking-less-likely-now.html?sid=101
May 11, 201114 yr If you can, wait 1-3 days to buy gas. The wholesale price has fallen nearly 30 cents so far today. Won't show up at gas stations right away. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 11, 201114 yr Until then... Cleveland: Thousands turn to RTA due to gas prices 6:46 PM, May 10, 2011 CLEVELAND -- High gas prices have thousands of Northeast Ohioans leaving their cars at home and taking the bus or the train. The Greater Cleveland RTA reports ridership up at least 5 percent recently. And those figures were calculated before gasoline hit $4 per gallon. "We are now averaging between 165,000 and 170,000 individual riders per day," says RTA's Mary McCahon. She said the numbers should continue to grow as the price of gasoline stays at or near present levels. READ MORE AND SEE THE VIDEO AT: http://www.wkyc.com/news/article/189333/3/Cleveland-Thousands-turn-to-RTA-due-to-gas-prices?odyssey=mod "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 12, 201114 yr This morning in Northwest Indiana (Valparaiso and Michigan City) unleaded regular was $4.23 - $4.25 most places. Driving east on US 30 I saw it down to around $4.06 around Plymouth and Warsaw. I thought, keep going, it's getting cheaper. By the time I got to Fort Wayne I had to buy gas and it was $4.15 at Speedway with a rewards card ($.03 off). I take some consolation in that the latest tankful on the Focus wagon ran 318 miles including about 40-50 miles of city/small-town/local driving averaged 33.5mpg. That was with more than a hundred pounds of cargo in the back, offsetting the meager weight of my skinny a**. On the highway I just set the cruise control at the posted limit and let 'er cruise. It's funny how I used to get passed by lots of cars and trucks going a lot faster, and today hardly anyone passed me.
May 13, 201114 yr TRANSPORTATION Why are we so angry at the pump? Because we have no choice BY SARAH GOODYEAR 12 MAY 2011 12:19 PM Europeans want to know: "Why are Americans so angry about petrol prices?" An article on the BBC earlier this week looks at the question from a very high-minded, almost anthropological perspective. You can almost see the reporter screwing in his monocle to observe the colonists' colorful ways. Aside from a few man-in-the-parking-lot interviews in Tysons Corner, Va., insight into the perplexing American point of view is left to an "expert" -- The Wall Street Journal's automotive critic, Dan Neil, who took the grand historical view: READ MORE AT: http://www.grist.org/transportation/2011-05-12-why-are-we-so-angry-at-the-pump-because-we-have-no-choice "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 16, 201114 yr Mississippi River flooding has taken tens, possibly hundreds, of thousands of acres of prime corn and soybean land out of production for at least the current season. Some farmland been scoured of its topsoil and will be unproductive for many years. In addition, the unrelenting rains in the Midwest have kept farmers out of the fields. Planting in most places already is severely delayed, and the sustained wet, cold weather will have a strong adverse effect on crop yields from the fields that have been planted. All these factors will affect biofuel availabiity and price. The reduced availability of feedstocks could have an adverse effect on biofuel producers, reducing industry employment levels and possibly jeopardizing the survival of some of the companies. Farmers suffering long-term destruction of their land's productivity may face bankruptcy.
May 17, 201114 yr Probably not the best place for this, but I've heard the farmers in S.W. Indiana haven't even planted their corn crop due the heavy rains. Last year was great for sweet corn. Sounds like we'll be lucky to get to buy some before August.
May 17, 201114 yr The railroads are picking up some of the slack in moving grains to market due to the flooding and today's closure of part of the Mississippi River. U.S. Flooding To Push More Freight to Railroads Read more at: http://www.joc.com/rail-intermodal/floods-raising-shipper-costs-analyst-says
May 17, 201114 yr Probably not the best place for this, but I've heard the farmers in S.W. Indiana haven't even planted their corn crop due the heavy rains. Last year was great for sweet corn. Sounds like we'll be lucky to get to buy some before August. I'll have to check with my folks on this, but I don't think we've been able to get anything in the ground at our farm in Pickaway County yet. Today's rain isn't helping.
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