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Heard on the radio today, for unleaded gas. Justin it's in your neighborhood, give us a report. Is it true, whar's high test?
Jerry Fuccillo
#42179
Jerry Fuccillo
#42179
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Jerry Fuccillo
1967 327/300 Convertible since 1968 -
Re: $3.05 per gallon in Malibu, CA!!
Jerry---
That's probably the price for premium. Usually, the news reports are going to report the highest price they find when they're trying to do a story focusing on how high the price of gas is. In days of old (like a few years ago), the price of gasoline in southern California was always lower than the price in northern California. Northern California always had the highest gas prices in the country. Folks in northern California always griped about the price difference between northern and southern California. So, the oil companies "fixed" that; they made the southern California prices about equal to the northern. The price of gas here in northern California is about $2.30/gallon for regular unleaded and about $2.50/galon for premium unleaded. Of course, there are places where it's higher (like in downtown San Francisco) and I'm sure that's the sort of situation being reported on in southern California that you mentioned.
Notwithstanding the above, you can COUNT on the price of gasoline going much higher. The full effect of the current price of crude oil hasn't even "filtered down" yet to the pump. Plus, I think that the price of crude is going to go higher. In fact, much higher. You see, the ONLY way that prices will be driven down is if the price lowers demand. That's not happening. Folks just pay the higher price and cut down in other areas to compensate if they're on budgets. So, if the higher price doesn't reduce demand, then the price will go even higher. It's simple "supply and demand" economics.
A very large percentage of folks in this country have decided that they're going to take advantage of the "loophole" the government created for fuel economy years ago when they set the CAFE standard for trucks lower than cars. The automotive industry has obliged them, too. Now, everyone rides around in trucks that are called SUVs. Consequently, most of the demand lowering benefit of the CAFE standards has been "squandered away".
Some folks think that the opening up of the arctic areas for drilling will solve the problem. It won't as far as price is concerned. It will help a LITTLE as far as our "energy self-sufficency" is concerned. The fact is that oil is a commodity traded on the WORLD market. OPEC can easily compensate for any increased production outside of OPEC by simply reducing their production. The arctic oil, when it arrives YEARS from now, will be just a "blip on the chart" as far as they're concerned.
Until fairly recently, the inflation-adjusted price of gasoline has resulted in its being cheaper than it's ever been in 50 years. Folks talk about the "cheap" gas of the 50s and 60s at 30 cents a gallon. On an inflation adjusted basis, until recently it's been about the same. That's one of the factors that's driven the "SUV explosion".
There's an old saying that "rings true" today. That is "...if you want to dance, you've got to be prepared to pay the piper...". I'm afraid that the day has finally arrived for the piper to be paid. In fact, I think that before it's all over you're going to see the price of SUVs, both new and used, fall like a rock.
In my opinion, as far as gasoline prices go, you "ain't seen nothin' yet".In Appreciation of John Hinckley -
Re: $3.05 per gallon in Malibu, CA!!
That's cheap! Here in Manitoba Canada the posted price is .854 cents per litre.
To convert that to the Imperial gallon, use 4.54 X .854 = $3.88 for REGULAR UNLEADED ( 87 octane )
To convert that to the equivalent of an american gallon, which is 20% smaller, it would be $3.10
Now, for the good stuff - premium unleaded (91 octane) carries a 10 cent up charge or .954 X 4.54 = $4.33 for an Imperial gallon or $3.46 for an american gallon
These are for self serve outlets. Full serve can be anywhere from 1 to 5 cents higher per litreComment
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Re: $3.05 per gallon in Malibu, CA!!
That's what happens when you reelect a Texan in the White House!Comment
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Re: $3.05 per gallon in Malibu, CA!!
the people in calif do not re elect bush and now they are paying the price. we the people in the red states are still paying a $1.99Comment
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Re: $3.05 per gallon in Malibu, CA!!
Price here in northeast Ohio in $2.19 already, for regular. Somebody reelected him. Ever notice how no one admits they voted for the wrong guy?
TerryComment
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Re: $3.05 per gallon in Malibu, CA!!
Easy Terry. If you go any father left you may fall off.Comment
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Re: $3.05 per gallon in Malibu, CA!!
There are a myriad of reasons for the run up of oil prices, including the war on Terrorism, (primarily because of the uncertainty war breeds).... frankly, the war on Terrorism is the most insidious war of our country's history and was reason enough to have reelected him, versus others that would stand in condemnation of this Administrations efforts, but offer no other solutions to the challenges our Nation faces.
Life to date, the world has consumed about 900 billion barrels of oil --- and the current known hydrocarbon reserves (still in the ground in one form or another -- shale reserves for instance) are estimated to be 13-trillion barrels --- yes, TRILLION. So, with that knowledge, is it safe to accept that the prices are being impacted by speculation and emotion? Does everyone in California recognize that your state laws prohibit outright - adding refinery capacity? For that matter, environmental law restrictions are prohibiting the building of additional refinery capacity throughout the U.S. - Do we believe that too impacts gasoline prices? Do we find it odd that every spring and early summer gasoline prices go higher? The Oil Companies have been very successful in marketing their perpetual inability to forecast heating oil refinery requirements in line with changeover schedules to support the increase of gasoline consumption in line with good weather. Hmmm…. of course, in reality, the restrictions with on-shore refinery capacity does impact that scheduling.
Would increasing fuel economy be a good thing – You bet…with the information shared above, do we think SUV’s are really having a THAT huge of an impact? Or, would anyone agree that we no longer send “statesmen” to represent us…instead, we elect attorneys that convert to full-time politicians, and portray themselves as “looking out for the people”.Comment
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Re: $3.05 per gallon in Malibu, CA!!
Nice Reality check Myron......Toronto is not quite that high,but you're right, We've been paying these prices for years...........
The way to lower your prices my American friends is to start using your OWN oil instead of buying off shore. Michigan has some of the largest oil reserves in North America. The piplelines are already installed. Hence no shipping from Iraq, has to cut the price in half easily. But you would end up using your oil reserves. Who are you "reserving" it for? In another 20-30 years they will have come up with a way more efficent fuel for transportation. But I imagine thats the "real" reason to invade Iraq.
My.02 cents Canadian on the price of gas...........:):)Comment
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Re: $3.05 per gallon in Malibu, CA!!
It don't bother me to say I voted for a Texan.
I wont a kick A##S president not a Kiss A##S LiberalComment
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Re: $3.05 per gallon in Malibu, CA!!
$2.19 here in Greater Cincinnati for 87 octane, $2.39 for 92 octane. BTW, I vote for the right guy every election - he just doesn't always winComment
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Re: $3.05 per gallon in Malibu, CA!!
I agree. Big oil likes this situation and the are sitting heavy in cash. They are making money from it and love it. Years ago I read that US oil companies had refinement capacity that could easily match the demands of the United States. For what ever reason they don't have that capacity today (intentional/unintentional). Also, much of the refinement capacity is geared to light sweet crude. So now there are a couple situations that are building up, increased world demand, oil that is more expensive to get out of the ground, poor quality oil (not light sweet crude)that is more expensive to refine, oil companies that are not set up to refine the cheaper grades of oil. It is a supply shortage that will only get worse at the pump. (MHO)
I think that the economy will start to feel the weight of it when oil gets above $60.00 dollars a barrel. The stock market has been trying to anticipate the actual effects on the economy but so far the actual economy seems to be chugging along. I see it coming to a head this summer sometime. The economy is at about the standard 3 year market cycle regardless of the cost of fuel, compound that with the cost of fuel and rising interest rates and a falling dollar. I would say the coffin is nailed shut and ready for the grave.
I always stand to be corrected on anything I say on this board. I am not an expert in economics and you won't offend me if you correct me or disagree with my comment. Best regards to everyone, TerryComment
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Re: $3.05 per gallon in Malibu, CA!!
Not left or right, just stating the facts!Comment
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Re:Yah, Malibu is expensive
Here's a shot of the local 76 station this morning! Malibu is also quite isolated and down to one lane each direction on Pacific Coast Hwy. I expect prices to be higher in my town, that's just the way it is here. I'm poor, but people who own property in Malibu don't care about price cost of barrels of crude oil. Half of the 12,000 or so people are in the movie business. They've got money to burn!
Justin
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Re:Yah, Malibu is expensive
That's why you buy gas in the valley before you go over the canyon. Valley Guy.
KevinComment
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