Are Gas Price Increases Justifited?

[BDawg]

CNN Link

However, it (AAA) said, "nothing fully justifies the dramatic increase in gasoline prices experienced across the United States in the last month."

"AAA also urges gasoline wholesalers and retailers to show restraint in the pricing of their product, and [cautions] the industry not to take advantage of the nation's heightened terrorist alert status," it said.

I'm not sure I see any reason why gas prices should have gone up so much. I haven't heard of an OPEC production cut.

 

[Miramonti]

from what I understand the inventories are very high also.

 

[SoylentGreen]

Ha ha ha! Make all those 12 MPG SUV owners suffer!

 

[iamwiz82]

Originally posted by: Kiyup
Ha ha ha! Make all those 12 MPG SUV owners suffer!

usually those who can afford a large SUV can also afford gas.

 

[ElFenix]

what did the price of a barrel go up? average gallon went up $0.15 or so

 

[VBboy]

When something can make money, taking the necessary action to do so is always justified

 

[Queasy]

Essentially, they are increasing the price of gas now because they are anticipating an increase cost of gas later. Whether that will happen or they are just using it as an excuse to gouge is another story.

 

[BDawg]

Yesterday (at the gas pump of all places), I was actually happy that I didn't have to fill up my 21 mpg 93 octane SVT Contour anymore. My new car takes 89 octane and gets 28 mpg, and performs similarly.

 

[Vic]

Oil futures are up because of concern of the upcoming war with Iraq, hence gas prices are up.
What? you thought that gas prices would go down if we went to war with Iraq? Hello, McFly? Any of you know how GW's oil business went bankrupt? It happened because oil futures prices plummetted in the mid-late-80's.

 

[dahunan]

Hell NO they this dramatic increase is not justified. I think we will see AGs from many states sue the companies who are doing this

Economies of many states are in horrible shape. The price of Gas in Oregon has gone up almost 25 cents per gallon in under two weeks.

 

[nord1899]

Gas here on Long Island have gone from about $1.50 in December to about $1.75 now. This is for regular gas.

 

[Vic]

Originally posted by: axiom
Did anyone think oil prices would NOT go up if there was a war with Iraq? Kuwait pledged to increase production if there is a war with Iraq. That's a good sign, but production in Venezuela is still very slow as well.

Tons thought that oil prices would go down. Hell, it was a major justification for the war by countless posters on this edit: forum
Seriously, do a search.

 

[CraigRT]

Are Gas Price Increases Justifited?

noooooo!!!

 

[dahunan]

P.S. The War with Iraq hasn't started yet.... So... how can they raise the prices so dramatically?

 

[JellyBaby]

Don't forget the ongoing problems with South American oil.

When war begins prices will rise even higher.

 

[Vic]

Originally posted by: dahunan
P.S. The War with Iraq hasn't started yet.... So... how can they raise the prices so dramatically?

Oil is traded as a commodity (which it is), with various brokers bidding what the price will be 2-3 months in advance. This is known as "futures." Oil futures have been rising dramtically of late, recently reaching a 2 year high. This increased cost eventually trickles down to the pumps. As long as supply remains high (as it has), the winners here are the oil companies. The owner of your local gas station takes it in the shorts, as competition gets fierce when prices rise and each station tries to delay as long as possible.

Links:
A recent one, "Operation Unleaded $0.999"

More coming.... (edit: damn I need to become a subscriber just for the improved search functions alone )

 

[desy]

1 There are proffiteers speculating right now and that drives up the price, even with the strike in Venzuala that isn't enough to drive it up
2 They can do this because gas prices are inelastic , that is large changes in price doesn't effect demand as people will not stop driving.

So grin and bear it, fuel prices are too low anyway, but if the gov't is serious about giving releif 30% of the price of gas is tax.

 

[TubStain]

the threat of war is all that is needed for prices to rise

 

[43st]

Originally posted by: JellyBaby
Don't forget the ongoing problems with South American oil.

When war begins prices will rise even higher.

Correct... Venezuela is having some very big labor problems right now. They're operating at 1/3 capacity. What's interesting is that Iraq actually boosted oil production to match what was being lost in South America. I don't think OPEC is involved in this one, simply war fears as with the rest of the market.

 

[Freejack2]

Gas is up 24 cents a gallon here. Glad I don't drive some gas guzzling 12mpg suv.
Course for the most part the people it really hurts is tractor trailer drivers. If gas hits $2 a gallon it's an extra $10 a week for us commuters. I imagine several thousand miles a week isn't uncommon for tractor trailers, and that translates to a LOT more fuel expenses for them.

 

[johneetrash]

i was just watching the news, and they're saying regular gas this summer will be upped to $2.50! that's if we go to war with iraq. even though i know that's BS because they're just finding a way to make money off of us

 

[Tripleshot]

Originally posted by: Freejack2
Gas is up 24 cents a gallon here. Glad I don't drive some gas guzzling 12mpg suv.
Course for the most part the people it really hurts is tractor trailer drivers. If gas hits $2 a gallon it's an extra $10 a week for us commuters. I imagine several thousand miles a week isn't uncommon for tractor trailers, and that translates to a LOT more fuel expenses for them.

Truckers can drive solo 600 miles a day,and more as a team. What people really don't gert when they spout off about SUV's is that when fuel prices go up, that cost goes into EVERYTHING you see,feel, touch ,smell, wear,eat everything but maybe the air you breath. A truck must pick up and deliver every piece of product produced for youe use, from the raw material(iron ore from the ground) to the fork you use to eat (as an example) after its produced through many manufactiring steps.

This crap that the oil companies are gouging us on, and the pukes that think this is normal and fair for "speculators" is BS. :| This is pure unadulterated greed, and nothing we as consumers can or will do about it,so it goes on.

At this rate, (and prices went up 21 cents/gal here since my last fill up) you can only cut back and quit driving. Unfortunately, that doesn't work well, and the oil companies will keep prices artificially high to please the shareholders. More freakin greed! :|

SUV's get pretty fair milage based on thier size. Not everyone wants or can fit into a subcompact ricer for the additonal 5-7 MPG they might offer. If someone wants to harp about the exces of SUV's, go bitch to the people that control engine design. You'll find the oil companies have a strong voice there, acting in their intersts, not yours. We could be using engines with 75/MPG in an SUV if the oil companies didn't buy up all the patents. :|

 

[Kyteland]

I heard this on the radio this morning.

Gas prices rose an average of $0.03 across the US in one day just a couple of days ago. That is unheard of. It usually takes more like 2 weeks to do that, even when the outlook on the oil supply isn't so hot. There is going to be an investigation in to price gouging by the oil companies.

 

[waggy]

I filled up my taurus about a week ago at $1.45.

im at half a tank but the weather is really cold so i decided to fill it up. i drove by the amaco and noticed its at $1.74 a gallon! this is in a week!