Why aren't gas prices dropping?

[Gordo]

Why aren't fuel prices dropping like expected? There is a web site that shows a graph of fuel prices since 1995. I thought after the war we would see a decrease, but regular gas is up 10 cents a gallon from the same time last year. See it at www.storydata.com

 

[Miles]

Why aren't fuel prices dropping like expected? There is a web site that shows a graph of fuel prices since 1995. I thought after the war we would see a decrease, but regular gas is up 10 cents a gallon from the same time last year. See it at www.storydata.com

The war had little to do with the price of oil on the world market. Seasonal summer increases in gas prices are normal. Late spring we saw prices come back down considerably here. I did notice that in large cities the price of gas is much higher than in remote towns. Traditionally the opposite is true. I expect prices to drop some by september as demand drops.

 

[donovan n]

Gas prices have little to do with real-world conditions, much like the stock market, prices have more to do with the perception of value.

--donovan

 

[Buckshot LeFunk]

One would have thought so, especially with Iraq having become the 51st State of the Union.

 

[pdb]

We have noticed for a long time that gas prices on the East side of town (blue collar neighborhods) are quite a bit cheaper than same brands on the west side (yuppy neighborhoods). Only a mile or two apart.
FWIW

 

[Alfred B]

We have noticed for a long time that gas prices on the East side of town (blue collar neighborhods) are quite a bit cheaper than same brands on the west side (yuppy neighborhoods). Only a mile or two apart.
FWIW

Competition...or lack thereof.

I may be slightly exaggerating here, but when you think about who has bought out who as of late, there's really only a handful or two of oil companies left.

Exxon/Mobil
BP/Amoco
Texaco/Chevron/Phillips

That almost covers it right there.

 

[The Mary Millington Experience]

Just be thankful you're not in the UK

Currently between GBP 3.30 and GBP 3.50 for unleaded

 

[Steven]

In a word.... Greed.

S.

Why aren't fuel prices dropping like expected? There is a web site that shows a graph of fuel prices since 1995. I thought after the war we would see a decrease, but regular gas is up 10 cents a gallon from the same time last year. See it at www.storydata.com

 

[Valley]

Petroleum prices and the prices of distillates such as gas have risen in the states due to desperately low natural gas inventories. When one energy market gets expensive, it tends to effect the price of other energy commodities. Fed Chairman Greenspan has pointed to the natural gas situation as a potential pitfall in economic recovery.

Another reason why gas is so expensive right now is simply that the price of crude on the open market has reflected the uncertainty of the political situations in the various OPEC countries. Anyhow, the price of gas could certainly be higher. I wouldn't call the prices we're seeing here in the Pacific Northwest unreasonable, though I'm sure that SUV drivers are pining for the 'good ol' days'.

 

[PG]

Petroleum prices and the prices of distillates such as gas have risen in the
states due to desperately low natural gas inventories. When one energy
market gets expensive, it tends to effect the price of other energy
commodities. Fed Chairman Greenspan has pointed to the natural gas situation
as a potential pitfall in economic recovery.

Another reason why gas is so expensive right now is simply that the price of
crude on the open market has reflected the uncertainty of the political
situations in the various OPEC countries. Anyhow, the price of gas could
certainly be higher. I wouldn't call the prices we're seeing here in the
Pacific Northwest unreasonable, though I'm sure that SUV drivers are pining
for the 'good ol' days'.

 

[Philip King]

Don't believe everything the TV tells you. Oil prices are based on supply and demand. Guess who is creating the extra demand right now? China, to everyone's surprise!

Check the facts for yourself, and don't rely on the talking heads on TV because they just repeat what they have been told by the anal-ists.

Live Long & Prosper
Phil

 

[john adams]

And the fact that Iraq isn't pumping out its black
juices as expected. Notice as the US went in there
was a short term drop, probably in correlation
to some anticpation of stabalizing the Middle East
region, which is now proving to have been
incorrect.

 

[The Mary Millington Experience]

Try the UK prices, USD 1.20 per litre of unleaded and going up again shortly, we are taxed at a rate of about 400% on fuel. And the government say it's to try and discourage people from using their cars and forcing them onto public transport. Despite the fact the public transport in the UK is crap and has been lacking investment for years.

Real reason (IMO) is that the government know that people will continue to use their vehicles and it's another way of taxing us on top of the Road Tax we pay them aswell.

Bugger, I feel better now.

Paul

 

[dforant1]

that's liberalism for you

Try the UK prices, USD 1.20 per litre of unleaded and going up again shortly, we are taxed at a rate of about 400% on fuel. And the government say it's to try and discourage people from using their cars and forcing them onto public transport. Despite the fact the public transport in the UK is crap and has been lacking investment for years.

Real reason (IMO) is that the government know that people will continue to use their vehicles and it's another way of taxing us on top of the Road Tax we pay them aswell.

Bugger, I feel better now.

Paul

 

[Gary J Bevans]

You should have you tried to get gas in the last 2 weeks here in Phoenix you would have been willing to pay just about any price. Gas Stations all out of gas those that had gas were charging anywhere up to $ 5.00 per gallon. What a bunch of crooks taking advantage of the public.

Gary

 

[pookeybrain]

You should have you tried to get gas in the last 2 weeks here in Phoenix you would have been willing to pay just about any price. Gas Stations all out of gas those that had gas were charging anywhere up to $ 5.00 per gallon. What a bunch of crooks taking advantage of the public.

Gary

If our elected officials down here in Florida mandated a certain blend of gasoline different from the rest of the country we'd probably be paying $5.00 a gallon too.

 

[Jerry Kindall]

You should have you tried to get gas in the last 2 weeks here in Phoenix you would have been willing to pay just about any price. Gas Stations all out of gas those that had gas were charging anywhere up to $ 5.00 per gallon. What a bunch of crooks taking advantage of the public.

Gas at $5 a gallon is a signal that means "don't buy gas right now if you don't need it." Because people who can wait are given incentive to do so by the price, there is more gas left for people who actually do need it immediately.

I'm sure that doesn't make the people who paid $5 a gallon for gas any happier, but it doesn't make the gas station owners crooks. They're just trying to maximize their utility, same as you.

 

[dale_peterson]

You should have you tried to get gas in the last 2 weeks here in Phoenix you would have been willing to pay just about any price. Gas Stations all out of gas those that had gas were charging anywhere up to $ 5.00 per gallon. What a bunch of crooks taking advantage of the public.

Gary

Yah, we got hit in Northern Nevada for $ 1.99 a Gal and we get our gas from Northern California refineries. As long as we have ex-oil company executives running the White house and laying down for large energy companies, they're going to hit us as hard as they can. Of course after a while this high pricing will seem normal. In 1974 I ran a couple Shell Stations and was selling gas for $.49 a gal and thought it was high.

Dale P.........

 

[James (6)]

Gas at $5 a gallon is a signal that means "don't buy gas right now if you don't need it." Because people who can wait are given incentive to do so by the price, there is more gas left for people who actually do need it immediately.

I'm sure that doesn't make the people who paid $5 a gallon for gas any happier, but it doesn't make the gas station owners crooks. They're just trying to maximize their utility, same as you.

2003 Chianti Red Elantra GT
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attachments.

I disagree. Gasoline and oil is more in the nature of a public resource, both in terms of the public financing of drilling via tax laws etc., and the limited and diminishing state of the resource. the very dependence of us all upon the resource for daily activities as well as national defense and stuff makes the whole thing more like public utilities than anything else. A reasonable profit is, well, reasonable. The need for some oversight is all too obvious.

 

[Miles]

dale_peterson wrote:
> As long as we have ex-oil company

executives running the White house and laying down for large energy companies, they're going to hit us as hard as they can.

Oh good grief. Another liberal.