2014 Gasoline Price Forecast

[dmcowen674]

The tax excuse is just that, an excuse.

They didn't raise taxes 20 cents, they raised the price of the gasoline.

6-18-2014

http://chicago.cbslocal.com/2014/06/18/u-s-gasoline-prices-nearing-six-year-high/

U.S. Gasoline Prices Nearing Six-Year High



The average U.S. price for a gallon of gasoline is approaching its highest level in six years.


The average price in the United States is now $3.68 a gallon, according to the U.S. Energy Information Administration.


The average is slightly higher in the Midwest: $3.71

If those prices rise just a few more cents, it will be most expensive since 2008.

In Chicago, which has the highest gasoline taxes in the nation, it is even worse.


At $4.15 a gallon, the price here has risen about 20 cents in the past month, according to Gas Buddy.

 

[Engineer]

And now....a new proposal to increase gas tax.

http://finance.yahoo.com/news/senators-propose-12-cent-gas-tax-increase-161747827--finance.html

 

[dmcowen674]

And now....a new proposal to increase gas tax.

http://finance.yahoo.com/news/senators-propose-12-cent-gas-tax-increase-161747827--finance.html

People are driving less per capita and cars are more fuel efficient, keeping revenues fairly flat.

More punishment for what is supposed to be good in using less fuel just like electricity.

We should go back to incandescent bulbs and giant gas guzzling 8 cylinder engines.

 

[realibrad]

More punishment for what is supposed to be good in using less fuel just like electricity.

We should go back to incandescent bulbs and giant gas guzzling 8 cylinder engines.

So how would you pay for the road repairs and maintenance?

 

[OutHouse]

So how would you pay for the road repairs and maintenance?

what road repairs and maintenance?

 

[Engineer]

So how would you pay for the road repairs and maintenance?

The same way we do for everything else, borrow the remaining needed money.....unless you're suggesting that we need to raise taxes in general to pay for the things that we are using.

 

[realibrad]

what road repairs and maintenance?

Not sure if you are being sarcastic or if you dont know that the fuel taxes are used to build and maintain roads both on the federal and state level.

 

[realibrad]

The same way we do for everything else, borrow the remaining needed money.....unless you're suggesting that we need to raise taxes in general to pay for the things that we are using.

I may be against a large federal government, but I'm more against a government that does not fund what its doing. Borrowing can sometimes be a less costly option, but its usually not, as the net cost is much higher.

I don't see the government getting out of the transportation business any time soon, so it needs to fund its activities. I would rather the savings come from reduced government activities, but that isint likely either, so the least costly alternative is to increase revenue.

 

[Engineer]

I may be against a large federal government, but I'm more against a government that does not fund what its doing. Borrowing can sometimes be a less costly option, but its usually not, as the net cost is much higher.

I don't see the government getting out of the transportation business any time soon, so it needs to fund its activities. I would rather the savings come from reduced government activities, but that isint likely either, so the least costly alternative is to increase revenue.

Fair enough. I can just about bet that this, indexed for inflation, will turn into a windfall for government taxes and the excess will flow into the general pot. Considering that gas taxes, at the federal level, haven't been raised in decades and we're just now running out of money (because we are using far less gas then we did just a decade ago). Now, we're considering a large tax raise and one that never stops raising (unless we have deflation).

 

[bshole]

So how would you pay for the road repairs and maintenance?

Charge a annual federal tax on estates worth over 20 million dollars. Start it off small, say 1% and gradually increase it until it is high enough to fund all road repairs and maintenance.

 

[realibrad]

Charge a annual federal tax on estates worth over 20 million dollars. Start it off small, say 1% and gradually increase it until it is high enough to fund all road repairs and maintenance.

The context of my question was not, "is there a way to fund...".

The OP was saying that the attempt to increase revenue was a punishment for increased fuel efficiency, and that the idea of raising taxes was bad. I wanted him to explain how he wanted to pay for a thing the government does. I figured he would not respond though, as he has stopped a while back. In his eyes, I'm an oil thug because I think the increased global demand is causing gas prices to rise.

BTW, just taxing the rich is not the best way to do it. Not because the rich are delicate flowers, but because it does away with the base of a consumption tax, and that will drive up fuel usage, and any ill effects of burning oil has. Gas should go to its most efficient use, and driving everywhere its not a long term good idea.

 

[Attic]

So goes the price of gas, so goes the US economy?

Can the U.S. economy zip along at 3 percent GDP growth rate in face of $3.75 to $4.00 gasoline? In theory, if Americans conserve, is it possible, but the calculation here is that, at minimum, GDP growth would slow substantially.

To be sure, increased fuel efficiency has modified the gasoline price-to-U.S. GDP link – passenger cars sold in the U.S. in 2013 are about 50 percent more fuel efficient than in 1978 - but that increase in miles per gallon has not obliterated the fuel /GDP dynamic. In other words, oil remains the lifeblood of the U.S. economy: Its role in civilian and commercial transport remains large, and any price increase (or decrease) ripples through the U.S. economy.

Hence, to get a quick read on where the U.S. economy is headed, just look at the price at the gas pump.

Link

US GDP growth for Q1 was negative 1% and is being revised down. I don't think we are going to see an increase in federal gas taxes anytime soon. 4 dollar gas is a death blow to the economic recovery, why hurry there?

 

[realibrad]

So goes the price of gas, so goes the US economy?



Link

US GDP growth for Q1 was negative 1% and is being revised down. I don't think we are going to see an increase in federal gas taxes anytime soon. 4 dollar gas is a death blow to the economic recovery, why hurry there?

Unless the government cuts spending, its robbing peter to pay for paul. Either they raise taxes to pay for things they are doing, or they stop doing those things, or they go further into debt. At this point, the last option is more costly than raising taxes on fuel.

 

[dmcowen674]

It's not a huge jump like the midwest but glad to see Texans having to pay more at the pump

6-19-2014

http://finance.yahoo.com/news/retail-gasoline-prices-jump-6-173646273.html

Retail gasoline prices jump 6 cents across Texas, up 2 cents nationally



Retail gasoline prices have jumped 6 cents this week across Texas.
AAA Texas on Thursday reported the average price at the pump statewide reached $3.50 per gallon.


Gasoline prices nationally rose 2 cents this week to hit $3.67 per gallon.


The association survey found Dallas has the most expensive gasoline in Texas at $3.57 per gallon. Drivers in Corpus Christi have the cheapest gasoline at $3.41 per gallon.

 

[realibrad]

When are we going to hit $4/gal like you said dmcowen? You said we were going to have 50 cent jumps, and it looks like 6 is less than 50.

 

[dmcowen674]

6-22-2014

Many stations at $4.39 in Chicago, a lot of them were $4.45 last week.

http://www.chicagogasprices.com/map_gas_prices.aspx

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Meanwhile the Oil Thugs are making more money than ever:

http://finance.yahoo.com/news/five-oil-stocks-going-time-134019111.html

Five Oil Stocks Going to New All-Time Highs



Friday was a big day for oil and gas production companies. The country’s three largest and many others hit new 52-week highs


China has been purchasing oil for its strategic reserves


The first phase of China's strategic build-up amounted to 103 million barrels and was completed in 2009.



The second phase was supposed to add 169 million barrels to the reserve but since has been raised to 245 million barrels.



The second phase is expected to be completed by 2015.



The country is now building storage tanks for the third phase to hold an additional 152 million barrels.


That is 500 million barrels, of which most could have been left in the ground, just as most of the 750 million barrels in the U.S. strategic reserve could have been.



That unnecessary demand plays a significant role in the rising price of crude, regardless of whether a producer sells to China

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and now they are saying we will be running out of oil completely again:

http://peakoil.com/geology/only-53-years-worth-of-oil-left

Only 53 years’ worth of oil left



Global reserves of oil and gas will last only a few decades, according to a report given by BP analysts at the 21st World Petroleum Conference in Moscow on June 16.


The Petroleum Conference is the largest event in the oil and gas industry


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yet new record of American oil rigs while oil prices are high, imagine that.



http://www.businessweek.com/news/20...gy-rig-count-rises-to-1-858-baker-hughes-says


Oil Rigs in U.S. Gain to Record Amid Surging Crude Prices


Oil rigs increased by three to 1,545, the highest level since Baker Hughes Inc. separated its oil and gas counts in 1987.

U.S. oil production climbed by 17,000 barrels a day, or 0.2 percent, in the week ended June 13 to 8.48 million, the highest level since 1986

“High oil prices are making people money,” James Williams, president of energy consulting firm WTRG Economics in London, Arkansas

 

[Engineer]

OT but BP estimates that the earth has 53.3 years worth of recoverable oil left (at today's usage rates):

http://www.fool.com/investing/general/2014/06/22/the-world-has-533-years-of-oil-left.aspx

 

[dmcowen674]

Hopefully Texas and The Carolinas are not far behind, those smug idiots need to be paying more.

6-22-2014

http://247wallst.com/energy-economy...-california-rise-above-4-as-oil-prices-surge/

Gas Prices In California Rise Above $4 As Oil Prices Surge

As oil prices rise above $107, probably headed toward $110, the average price of a gallon of regular has topped $4 in California, and is moving rapidly in that direction in other states as well. The run up is rapid enough as well as high enough that economists have begun to express anxiety about how it will affect consumer spending, and thus GDP.

The primary theory behind the damage gas prices do to the economy is that lower income and middle income families are robbed of most of their discretionary spending power. These families are often stretched financially anyways because of the combined costs of food shelter and clothing. As gas prices eat into their budgets, these people cease to be consumers.

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In San Francisco, the price reached $4.23.

It is worth noting that many of the states with high prices are among the most populated, which means the effects are spread across a very large number of people. California has 38 million of America’s 315 million residents.


States where gas prices are above $3.80 include Michigan which has a population of 9.9 million, Illinois with a population 12.9 million, New York with a population of 19.7 million, and Connecticut with a population of 3.6 million. Together, the states have a population which is 27% of the U.S.

The last time gas prices posed a significant risk to the economy was 2008, when crude oil in the United States spiked above $140 and the average price of a gallon of regular topped $4.10.

Gas prices have returned as a risk to the economy, and may shortly be a very large one.

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[dmcowen674]

6-23-2014

http://voices.suntimes.com/business-2/chicago-has-highest-gas-prices-in-the-u-s-survey/

Chicago has highest gas prices in the U.S.



Chicago is tops in a new survey but few people will be happy about this one.


Chicago had the highest average price of a gallon of regular gasoline at $4.15 a gallon in a survey by industry analyst Trilby Lundberg.



Tucson, Arizona, had the lowest average price at $3.37 a gallon.


Nationwide, gasoline prices rose an average of 2 cents a gallon over the past two weeks to $3.71.

Lundberg said Sunday that crude oil prices rose over jitters about Iraqi oil production as violence there grows.


Much of that increase hasn’t been passed on to consumers yet, and prices could increase over the coming weeks.

 

[Londo_Jowo]

Don't know where that $0.06/gal increase was seen in Texas, must have been in the North. Gas at the stations close to me have gone up $0.03/gal at the most if at all. I paid $3.32/gal this morning.

 

[mizzou]

my wife and i are moving to am area where we use NO gas to get back and forth from work. Very excited to not give a shit about prices anymore lol

 

[desy]

Smart
Mitigate the impact instead of bitching n moaning
Before I moved from about a mile from work to 20 miles from work I factored in what ifs, like a doubling of gas prices, would this still be in the budget?
It was

 

[dmcowen674]

Guess I'll find out in a few days if this makes Indiana the highest gas prices in the Country:

http://fox59.com/2014/06/25/indiana...-july-1-replaces-gas-sales-tax/#axzz35b9swgU5

Indiana gasoline use tax goes into effect July 1, replaces gas sales tax



Gas prices could be changing starting July 1, when a gasoline use tax law kicks in.

It replaces the prepaid sales tax on gas collected by gas stations. The Indiana Department of Revenue will calculate a rolling, monthly statewide average cost of a gallon of gas, and then add seven percent.


Gas stations will include the gasoline use tax in the price at the pump. The tax rate may change monthly based on the average Indiana retail price of gasoline.

​

 

[dmcowen674]

More and more areas going over $4

Didn't one of the resident idiots on here just say that isn't happening?

6-25-2014

http://www.newsday.com/business/long-island-gasoline-prices-top-4-a-gallon-1.8566960

Long Island gasoline prices top $4 a gallon



Gasoline prices have tipped over $4 a gallon on Long Island for the first time in almost a year.


They crossed the $4 mark last weekend, with regular averaging $4.032 a gallon Wednesday morning.


Wednesday's average represented increases of 10.2 cents from a month earlier, almost 24 cents from a year earlier and 43 cents from the recent low of $3.60 on Feb. 3.


Some analysts are predicting further increases at the pumps if crude oil exports are disrupted from Iraq, the second largest producer in the Organization of Petroleum Exporting Countries.

 

[dmcowen674]

6-25-2014

http://online.wsj.com/articles/shar...obama-move-on-exports-1403715825?mod=yahoo_hs

Shares of U.S. Oil Refiners Tumble on Move Over Crude Exports



Investors unloaded shares in U.S. crude-oil refiners on Wednesday in a selloff highlighting the potential threat that U.S. oil exports pose to the sector.


The widespread selloff was sparked by news, first reported by The Wall Street Journal late Tuesday, that the Obama administration had paved the way for the first oil exports from the U.S. in 40 years.