Why are Gas Prices Really on the Rise?

[FOSCO]

I mean come on.

Is it Katrina?

Is it greedy Oil Execs?

Is it Bush?

I just paid $3.20 for a gallon in Connecticut. That is a lot of money. :x

Fosco

[IMAO-Podcast]

Of course it's a known fact that when George W. Bush is not personally dropping African-American babies from New Orleans into blenders for his morning protein shake, he's in secret meetings with greedy oil company execs and the Saudi royals to drive up gas prices.

The only thing that can stop this evil is the IMAO Podcast:

[FX]

My guess is that it's partly Katrina, and partly greed.

[kickasspodcast]

I mean come on.

Is it Katrina?

Is it greedy Oil Execs?

Is it Bush?

I just paid $3.20 for a gallon in Connecticut. That is a lot of money. :x

Fosco

You didn't Hear?

Its Mikey Moore. He's in cahoots with Iran and the Bin Ladens and Mayor Nagin to make Bush look bad on behalf of Soros and Moveon.org

[docsnavely]

well, the american consumer will buy the same amount of gas today as they did 10 years ago.

no one seems to be trying to reduce their consumption by alternative methods, be it alt fuels or public transport, or a bike.

and with that being said, taxes increase on fuel sales just as the prices go up. the higher the price per gallon, the more taxes made for the government.

here in japan, gas has always been expensive, but that is in part due to the fact that the national gov. would like more to use public transport than cars....

and it works. people would rather pay roughly $45 US a month for a commuter pass on the train, than pay roughly $60US per tank at the pumps....

[Hittman]

What happened to the rest of the posts in this thread?

[FOSCO]

What happened to the rest of the posts in this thread?

I am wondering this myself.

[jeffoest]

I think it was part of what happened when Chris lost his database for a short while - some posts got deleted.

All I remember is that I'm pretty sure I said something brilliant... ;-)

[podcastshuffle]

Just seems like supply and demand. Here in DC there was a run on gas due to rumors that gas stations would run out of gas. My local station still has lots of gas but the price went up 20 cents. I filled up before the storm and before the prices were jacked! (whew)

I think this is mainly cause the wholesale prices went up for the gas stations and they of course passed the buck. Seems ridiculous that prices could spike so fast since they have gas in the ground that they paid for weeks ago but when station owners think they not getting any more supply the prices go up.

... interesting article on CNN Money (http://money.cnn.com/2005/09/07/news/economy/three_dollar_gas/index.htm)

Some independent station owners have seen only a fraction of their normal supplies and there have been scattered reports of stations running out of gas.

"Basically what is happening is the industry is trying to stop a run on wholesale gasoline by gas stations," said Sundstrom. "The gas station owners don't want to under price the market and possibly run out of gasoline."

IMO - if you want to blame someone, blame the traders who bid up the futures...

[FOSCO]

Just seems like supply and demand. Here in DC there was a run on gas due to rumors that gas stations would run out of gas. My local station still has lots of gas but the price went up 20 cents.

I hear you then I see things like this: http://www.worldtribune.com/worldtribune/05/front2453621.1027777777.html

Take it for what you will.

Fosco

[jeffoest]

I'm in no means an expert on gasoline prices - but do keep in mind that there is a great deal of difference in the supply of crude and the supply of refined product. From what I read, it is the refined product that may be going under some supply undertainty right now, not the crude.

Somewhat analogous I suppose of the dynamics of a bale of cotton vs. Ralph Lauren dress shirts.

[podcastshuffle]

I'm in no means an expert on gasoline prices - but do keep in mind that there is a great deal of difference in the supply of crude and the supply of refined product. From what I read, it is the refined product that may be going under some supply undertainty right now, not the crude.

You're correct. When the Saudi Pince Abdullah was in Crawford back in April that was the big point that his team made to the media. They can pump more oil, but we have to refine it to run in our cars and other machinery. Increases in oil production can lead to lower gas prices but the effects are usually more psycological IMO.

Jeff