There was a thread about $5/gal gas that was moved due to a lot of political talk os please keep it out of here. Anyways, the $5 gas fear this summer did not happen, again, for most of the country. It was actually about $3.63/gal a few weeks ago and we have one of the higher fuel costs in the western new york part of the state. Recently it's climbing to about $3.90/gal, labor day is coming so maybe there is the assumption of more traffic on the road with schools starting up again. But anyways $5/gal just never happened, if fact not even close, and I'm sure next year the same fears will rise again. Maybe it will hit this mystical $5 number thats been preached for the past 5 years, but I wouldn't bet on it. All the people that dumped the pleasure crusining SUV's/Trucks in years past are probably kicking themselves as they have to now purchase another one as they've adjusted their incomes to allow these purchases. I just find it so interesting how there is all this fear hype and it doesn't happen. I don't neccesarily care as to the reasons for it but how people can foolishly react to it before it even happens!!

Again please no politics so this can stay here and not be moved to ClubFTE.

 

prices have been going up due to the storms.

 

Having that "duh!!" moment right now!!! Living in the north I somewhat disconnected from all that madness down there.

 

One thing that makes me mad is prices go up instant, But when prices go down it takes weeks to see the lower price.

 

Prices are going up here. $4.13 right now for 87. They say its because of a fire at the chevron refinery here in California. Is very convenient how this happens every summer. But what I can not understand is its a chevron refinery, so why does shell, mobil, 76 all go up as well. when they say the gas prices are going up in Cali due to the chevron fire.

Oh well, Pay I will. Dont like it.

 

Here's the thing though. With each increase (whatever the reason) what has everyone done? Adjusted and moved on with life. This could be selling the SUV/Truck they couldn't afford in the first place, cutting somewhere else in their budget, or finding other ways around it. Me, I bought that used Taurus to commute with while my truck sees work duties and summer trips. Saving me a ton? No. But will save enough and hopefully allow me to own my truck longer, plus keep it off the salty roads in winter. But for a cost analysis if gas increased from $3 to $4/gal, with average 24 gallon fill up, and if commuting 4 fillups per month the price difference is and increase of $96 per month. Hurt the pocket book? Well here lies the problem in the first place. If this $100/month is going to break one's bank then maybe the truck purchase was the problem in the first place, especially if it is a pleasure vehicle. Pleasure meaning not working, not working meaning commuting, towing a camper, etc... If one would have a financial analysis done by a financial analyst one probably couldn't "afford" to have that truck anyways and of course the fuel price is going to hurt the pocket book. Now the crowd will say "I want to camp and I need a truck to do so!" True, do you "need" the 35ft 5th wheel? But that is a whole other thread in and of itself. Now lets look at my Taurus. I'm getting around 25mpg with fillups and about 14 gallons. 4 fill ups per month and that price difference between $3 & $4/gal is only $56. If thats breaking the bank one has other "issues". I'm not saying times aren't tough, but do we make times on ourselves tougher? People buy bottled water, sodas, drive thru coffee, and other liquids that are 3-10 times the cost per gallon of fuel. Yes we don't consume as much as a car does but food for thought...... I'm not for price increases but when you do the math if $50-$100/month is causing you to not eat food or pay your bills you need to assess your true needs for things. I feel more people "cry and whine" about gas prices because they're just upset they cannot afford to drive what the other people who can afford to drive. I don't enjoying driving that beater Taurus all the time, but that is my sacrifice for now and fuel prices are what they are. If you cannot truly afford something, have someone give you a financial analysis you'll be surprised, then don't complain when it comes back to bite you. Again I'm not pro oil companies, far from it, I just see the reality of the situation. I know people who make less than half of what my wife and I combined (and we do ok) driving brand new SUV's/trucks. Yea that makes sense. But they are the first to whine when gas goes up 10cents or $2.40 more each week for a fill up. I don't mean to offend anyone by writing this but I think a lot live in a reality show than reality.

Businesses, different story, but there are business who use fuel everyday that are still thriving.

 

I know that having that refinery go up in flames
did not help. I drove by on I-5 about 5 days after it happened.
Did not smell a thing. Just burnt trees from the forest fires.
Price in Fife WA for Diesel came down some thins last week
Monday it was at $4.259 Best price I saw was in the flats south of
Sacramento at a truck stop $4.119 diesel. That was on 08/18/12

Sean

 

Correct, but they have been going down the last few days as there was no damage to the gulf rigs nor any flooding at the the refineries that was feared. Prices SHOULD start to recede soon...

Economic concept on that is called "sticky prices" it's just how it is - it's much worse in non-competitive markets. If your area has a lot of competition the lag time is much shorter.

It reduced supply, there is virtually no difference at all in the product from various refineries and we live in a global economy, so based on econ 101, when we shift the supply curve backward, the corresponding intersection w/ the demand curve is now at a higher price.

That said, the output from a single refinery is so small that in theory it shouldn't have much effect...but it does. And as you've noticed it's worse at the local level.



My personal feeling is that we won't see $5 gas (or anywhere close to it)unless the Iran/Isreal conflict escalates even more. The markets have already factored some premium into the oil price for that but if it gets worse - Katie bar the door, we're in for a wild ride.

 

In reality you're correct in your first statement, however you touch on the the real issue in your second statement. Regardless if someone can or can't afford their personal cost of the fuel increase is only part of the story. The real increase comes b/c businesses have to increase their prices to cover the increased cost of fuel - so the prices of nearly everything we buy goes up.

 

I know milk has gone up and surely a host of other products but the grocery stores rip off the farmers to begin with. Have you seen some of these places lately? They're Taj Mahals!!! Oil must be killing them with costs....... My shopping bills are not much different from 5 years ago with the exception of 2 more mouths to feed. It's not like my daily living expenses have gone up $500/month because oil has gone up. Hardly. And if the cost of your 80" plasma tv is too much you've got other issues. Heck I run a part time landscaping business. I get customers all the time crabbing about gas prices and bills but part with $200+ a month to have their lawn mowed or $1000's for mulching. Hmmm. I think you can buy a push mower for less than one months bill and sling your own mulch and get some weekly exercise.
Any debts that I've brought upon myself are due to one thing, choice. If one is rolling along in a SuperDuty, new or used, and cannot put $300-500 in their savings each month I got news for you. You cannot afford to have that truck. I could whine all day about baby formula and diapers. I CHOSE to have a family. Now some people don't have much of a choice in life but if you're driving a V8-V10 truck you most certainly do. I'm by far not perfect with this stuff either and I know one thing, it's because of the choices I make.
I have a friend who has a beautiful new dodge 2500 cummins, new dirt bikes every year, new huge house on 5 acres (that I wouldn't be surprised if it was paid off), toy hauler, tractor, a part time landscape business and sleeps on a mattress stuffed with money. Point being he can afford to have this stuff. He's great with money and made the right choices. Then I have another friend who has a business his dad started and bought a ridiculously expensive home that his wife's entire teachers salary covers just the mortgage, drives a BMW, Porsche, Mecedes SUV, etc.... Killed his dads business and is in the hole so far but continues to spend so he can look like he's wealthy. He CANNOT afford anything in life. He will complain of gas prices, really??
Yes it's increased all of our costs but for thise who own big trucks for pleasure who say they are "hurting" need to reevaluate their entire life first.

 

Basic economics. Supply goes down, price goes up, consumption goes down.

The elasticity of fuel is pretty low, as most people cannot switch to another product to substitute for gasoline. Some will get more fuel efficient cars, a few will ride bicycles or walk to work, some can substitute public transit, but most of us will bite the bullet and pay higher prices.

 

I'll take in $5/gal in the V10!! Haha

I think a lot of that crap is just human nature. People love to stir up ruckus and get under peoples skin, its what we do. There is a lot of people that try to afford more than they can, and it does bite them in the rear eventually. I also don't see some people actually busting their *** for what they want anymore. I'm not trying to say anyone and everyone, but I know at my work they have opened up 20 hours of overtime per week now and a few co workers are complaining about being broke but won't work a second of overtime, hell they are the ones that miss work more often than others.

MDSUPERDUTY-i totally agree with the soda and coffee statement. I used to be one that would stop at fast food for lunch nearly everyday because i didn't feel like packing a lunch in the morning. My family also quit buying soda. We have saved about $200 a month just by cutting out the fast food and soda. $200 a month is almost my truck payment!

 

SUPPLY and DEMAND. If there were more refineries the prices would be cheaper. My advice to anyone who complains about fuel prices? own and operate a refinery, good luck getting past uncle sam and the tree huggers.

 

i'll pay more, plane and simple. i will not curb my driving or sell anything.

we had $4.50 this spring so it wasnt too far off the $5 mark.

 

Ours has been $4.40 for weeks and hasn't been below $3.80 for well over a year. There is zero reasoning behind fuel prices, it's just whatever we as a nation can pay before sales drop off. Anyone who tell you otherwise is not realistic. I've seen prices go up 4 times in one day at the same station, now you tell me, if that were a car dealer doing that, who in their right mind would be buying their car at that dealership? But we can't wait when it comes to fuel, we all need to get to work, take our kids to school, buy groceries, etc. When demand was high, they blamed it on all the soccer moms with 10 mpg SUV's and the claim that the refineries couldn't keep up. So everyone bought more efficient cars and trucks and now they claim the demand is low and profits aren't there because they don't sell as much. It's a huge lie driven by huge money and it's been that way since I was a little kid in the '70's and they discovered exactly how much people will pay during the oil embargo.