Get ready, here we go!
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Senior User
Joined: Sep 2004
Posts: 235
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From: S.W. Michigan
Get ready, here we go!
I have a prediction, based on some facts, but mostly a "feeling" that I have.
I predict that by Labor Day weekend diesel will be at $3.50 a gallon (average). That is a $0.45 increase from today.
The spot prices on the NYMEX for heating oil has increased 20+ cents in the past few days, increased demand due to farmers in the midwest harvesting their crops, the change over to ULSD, winter is right around the corner, the BP pipe line ordeal, and of course the termoil in the Middles East, not to mention the way out of control speculation that is driving the market, will all drive the price to a new record.
Plus, since the price of diesel does not get media attention, but accounts for 1/3 of the fuel used in the USA, high priced diesel is a great profit center for the oil companies.
Hopefully I am wrong, keep your fingers crossed that I am.
I predict that by Labor Day weekend diesel will be at $3.50 a gallon (average). That is a $0.45 increase from today.
The spot prices on the NYMEX for heating oil has increased 20+ cents in the past few days, increased demand due to farmers in the midwest harvesting their crops, the change over to ULSD, winter is right around the corner, the BP pipe line ordeal, and of course the termoil in the Middles East, not to mention the way out of control speculation that is driving the market, will all drive the price to a new record.
Plus, since the price of diesel does not get media attention, but accounts for 1/3 of the fuel used in the USA, high priced diesel is a great profit center for the oil companies.
Hopefully I am wrong, keep your fingers crossed that I am.
Cargo Master
Joined: May 2006
Posts: 2,116
Likes: 6
From: Florida
I like their tactics... last year the average price was 2.32 a gallon . raise the price alot drop it a little .and people are happy. next they will raise it to 4.00 a gallon and then drop it back to 3.60 a gallon and everyone will think it is a bargain . then bp will shutdown 8 percent of the oil supply to repair a pipe that should have had preventive maintenance, oh that already happened.
Senior User
Joined: Apr 2003
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Originally Posted by raptor131
I like their tactics... last year the average price was 2.32 a gallon . raise the price alot drop it a little .and people are happy. next they will raise it to 4.00 a gallon and then drop it back to 3.60 a gallon and everyone will think it is a bargain . then bp will shutdown 8 percent of the oil supply to repair a pipe that should have had preventive maintenance, oh that already happened.
As a hedge against high fuel prices you did invest in Exxon or BP last year like many of us, right?
RoyC
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Senior User
Joined: Jul 2005
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From: California
Today- 3.31 gal. Up from 3.17 two days ago. That is the cheapest in my area. Some are already at 3.45.
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Elder User
Joined: Jan 2006
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From: Lowsyana
The problem is that the FORD Focus won't tow the TowHauler that I'm looking at buying. It may fit in the back though.
Bottom line is that unless everybody runs out and sells their Gas/Diesel guzzlers we will al be at those expensive pumps just like we are today.
JetA went up 13 cents today after going up 11cents last Monday. These trucks consume nothing compared to the Augusta (heli) that I pilot. I wish it would all just go away, but it looks like a pretty steep grade from here.
Bottom line is that unless everybody runs out and sells their Gas/Diesel guzzlers we will al be at those expensive pumps just like we are today.
JetA went up 13 cents today after going up 11cents last Monday. These trucks consume nothing compared to the Augusta (heli) that I pilot. I wish it would all just go away, but it looks like a pretty steep grade from here.
Thread Starter
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Senior User
Joined: Sep 2004
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From: S.W. Michigan
I think only 3% of the private drivers out there run diesel, the remaining 97% burn gas or ethanol. That is from a poll I saw on a gas price website. It had over 13,000 votes so I think it would be accurate.
All the rest of the diesel is used by semi-trucks, trains, farm equipment, construction equipment, etc. Unfortunately I don't think that the mass public realizes that they are getting double dipped. They don't think that the price of diesel affects them because their car runs off of gasoline, but everyone ends up paying for the price for the high cost of diesel. We pay it in fuel surcharges and the increased transportation costs that companies add into the cost of their product.
I think we have passed the price point of diesel that can be absorbed by companies and now prices of everything is going to up. The fed better keep raising the interest rate to keep the inflation from going out of control. Or here is a better idea...reduce the price of diesel to control inflation.
All the rest of the diesel is used by semi-trucks, trains, farm equipment, construction equipment, etc. Unfortunately I don't think that the mass public realizes that they are getting double dipped. They don't think that the price of diesel affects them because their car runs off of gasoline, but everyone ends up paying for the price for the high cost of diesel. We pay it in fuel surcharges and the increased transportation costs that companies add into the cost of their product.
I think we have passed the price point of diesel that can be absorbed by companies and now prices of everything is going to up. The fed better keep raising the interest rate to keep the inflation from going out of control. Or here is a better idea...reduce the price of diesel to control inflation.
Elder User
Joined: Jan 2006
Posts: 554
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From: Lowsyana
Bt the way the Louisiana state tax on Diesel is 47cents on every gallon. I noticed this on the pump handle a while back. Anybody know what the rate is in your state? That's a HUGE chunk right there. I wished that it actually made it back to us in the form of better roads. Ours are some of the worst in the country.
Post Fiend
Joined: Apr 2004
Posts: 19,098
Likes: 8
From: Great State of Texas
That total is likely a combination tax rate. Not just State. Use the following link for state fuel tax rates:
http://www.gocomchek.com/gocomchek/gocomchek.nsf/FuelTaxes?OpenForm
As of Sept 2005, the current federal fuel tax rate is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel.
http://www.allbusiness.com/periodicals/article/854487-1.html
Then throw in a few pennies for county and some cases...city.
http://www.gocomchek.com/gocomchek/gocomchek.nsf/FuelTaxes?OpenForm
As of Sept 2005, the current federal fuel tax rate is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel.
http://www.allbusiness.com/periodicals/article/854487-1.html
Then throw in a few pennies for county and some cases...city.
Thread Starter
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Senior User
Joined: Sep 2004
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From: S.W. Michigan
Michigan is $0.15875 per gallon of diesel, plus 0.875 cpg UST Tax, plus an additional 6% sales tax on top of all that.
Go figure, I thought taxing taxes was unconstitutional.
For more information and historical data check out the following link:
http://www.eia.doe.gov/
Go figure, I thought taxing taxes was unconstitutional.
For more information and historical data check out the following link:
http://www.eia.doe.gov/
Last edited by laredo7mma; Aug 10, 2006 at 12:11 PM.
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