Current Spike in Gas Prices

[LuckyDan]

$4.07 for Regular in Coram/Hungry Horse Montana on 4/25. I didn’t pay attention to Diesel, sorry about that.

 

[teledork]

Prices went down a couple of weeks ago but then went back up again - except for Bridgeport and Lee Vining. I predict that they will never drop below $6.99 again (I think it was $7.99 for diesel)

 

[ski3pin]

gas prices rise like a rocket and fall like a feather...................

now $5.79

and now $5.69. The feather is floating slowly downward.............

drum roll please..................now up to $5.99

 

[Casa Escarlata Robles Too]

There's probably no end in sight.
Supply and demand.
Frank

 

[ski3pin]

drum roll please..................now up to $5.99

And now $6.19

 

[Casa Escarlata Robles Too]

Nice to know where the "oil money is".
Saudi Arabia just posted a 80% profit for the 1st part of the year.
Just saying.
Frank

 

[JWL]

We just took a trip from south Texas through Nm to south Utah (Bears Ears). After the first day I quit looking at the pump while and after filling so it didn’t ruin my trip!
We are staying home for awhile.

 

[ski3pin]

And now $6.19

We just took a trip from south Texas through Nm to south Utah (Bears Ears). After the first day I quit looking at the pump while and after filling so it didn’t ruin my trip!
We are staying home for awhile.

As long as we head north or east, gas is much cheaper than here..........................that helps keep us traveling.

 

[MarkBC]

As long as we head north or east, gas is much cheaper than here..........................that helps keep us traveling.

Kinda like hiking down to the bottom of the Grand Canyon -- the return leg of the trip is harder.

(no...I've never done that hike, but I can imagine. )

A Scottish friend of mine quoted a saying about mountain hiking: "Your lungs take you up and your legs take you down".

 

[JaSAn]

Stations here passed $4 a couple of weeks ago; currently $4.099 to $4.299 (except for Casco/Sam's @ $3.86).

This crossed my news feed yesterday:
https://finance.yahoo.com/news/us-cant-enough-fuel-theres-142521880.html

 

[buckland]

Massachusetts... $6.49 diesel, $4.67 regular... One thing I don't get. It isn't winter and all that home heating fuel (which is essentially diesel) isn't being consumed so why the high diesel costs?

 

[craig333]

Diesel is 6.30 a gallon if you shop around. I've seen over $7 near the freeway. Truck and camper are pretty much done. Family stuff should be done soon and I'll take off regardless of fuel prices.

 

[Wandering Sagebrush]

Massachusetts... $6.49 diesel, $4.67 regular... One thing I don't get. It isn't winter and all that home heating fuel (which is essentially diesel) isn't being consumed so why the high diesel costs?

Greed… is my best guess.

 

[buckland]

huh... ya probably, go figure. May god smite them.

 

[PaulT]

Methinks, they have already been smitten, with high prices.

Paul

 

[Stray Dog]

Greed? I don't think so. Companies are no more greedy now then they were when gas/diesel was $2. Companies are always "greedy" in that they need to make a profit to survive.

Greed can also result lower prices, as when a retailer drops prices below current levels to attract more customers...and increase sales.

The only way prices increase is if consumers have money to pay higher prices. If prices are too high, the product doesn't sell. AAA says that demand for fuel hasn't substantially dropped. Consumers have more purchasing power.

The most substantial change has been the injection into the economy over the past few years of gargantuan amounts of additional purchasing power....by governments as they print money and cause prices for all items to increase unreasonably.

 

[buckland]

Well as always it is the poor who hurt the most proportionately. I count myself as a fortunate one who may feel the pain but it ain’t gonna kill me.

 

[craig333]

I'm not going to stop going out but the quick overnighters are probably going to be fewer.

 

[buckland]

My 1956 R50 BMW, had since I was 20, gets 60 mpg. That is my 5 month warm weather ride. Also the bicycle is getting more use too! What’s the hurry!!?

 

[OutToLunch]

Greed? I don't think so. Companies are no more greedy now then they were when gas/diesel was $2. Companies are always "greedy" in that they need to make a profit to survive.

Greed can also result lower prices, as when a retailer drops prices below current levels to attract more customers...and increase sales.

The only way prices increase is if consumers have money to pay higher prices. If prices are too high, the product doesn't sell. AAA says that demand for fuel hasn't substantially dropped. Consumers have more purchasing power.

The most substantial change has been the injection into the economy over the past few years of gargantuan amounts of additional purchasing power....by governments as they print money and cause prices for all items to increase unreasonably.

The injection of the additional purchasing power was a short term issue and mostly spent on durables. That influx is over and does not explain the recent increase in fuel prices. As COVID restrictions have lifted, consumers have shifted their spending to more service sector related products/experiences.

The production costs of that oil you buy today has largely not changed for the large oil companies as the oil was explored and drilled for years ago. The infrastructure to refine and deliver it has built years ago. Trucking costs for that oil has gone up as costs of drivers has increased. Companies that buy on the spot market, i.e. not the large boys, have seen those prices go up for a variety of reasons including shipping problems, war, etc.

Consumer demand for oil is fairly constant regardless of the price and oil companies and others know this. Few people are willing to make lifestyle changes because the price of gas has gone up.