Gasoline prices expected to sky-rocket

[Cousin Vinnie]

These companies charge whatever they want for gas; it gets to be ridiculous. They blame is constantly on the "demand": "there's a high demand." The demand for gasoline doesn't fluctuate "that" much because people with cars need gas all the time. The oil companies just keep getting away with it so they charge what they want, and they "get" what they want.

 

[Avatar4321]

The demand might not change, but the supply does. when there is less of a supply there is going to be more demand then can be satisfied and prices will go up.

If anyone really wants to take care of case prices. why dont we slash the dollar in taxes put on every gallon.

 

[MtnBiker]

Demand on oil has increased greatly.

 

[krisy]

I don't understand this either because it doesn't appear that the travel season is upon us yet. Where is all the sudden big demand coming from.It's because the comapnies are cutting production-which goes back to the middle east.

 

[MtnBiker]

Keep in mind the world market not just here in the U.S.


What's Up With Oil
A guide to why prices are so high.

Tuesday, March 30, 2004 12:01 a.m. EST

But current prices do raise an interesting question: What has happened over the past 10 months to ruin forecasts of oil at $22 per barrel? The short answer is plenty.

Most important, demand has skyrocketed. Not only in the U.S., where economic growth has been gangbusters, but also in China, which has leapt ahead of Japan to become the second largest oil market in the world. While there is some debate about whether China is consuming oil or using it to build a strategic stockpile, the result is the same strong demand. China's growth has also sparked an economic recovery and higher oil demand in the rest of Asia. Count India, too, as an increasingly oil-thirsty economy.
link

 

[Cousin Vinnie]

I have to say I half understand in this situation. Why does demand actually (not using graphs and figures) make prices go up, even if the supply is low? A theory in some products would be that the supply would last longer with a higher price because less people would be inclined to buy the product because of that higher price. In the situation of gasoline, motorists need gasoline no matter how much it costs.

The bottom line in all of this is that we need to start switching to alternative energy sources before "all" of the world's oil run's out.

 

[MtnBiker]

Originally posted by Cousin Vinnie
I have to say I half understand in this situation. Why does demand actually (not using graphs and figures) make prices go up, even if the supply is low? A theory in some products would be that the supply would last longer with a higher price because less people would be inclined to buy the product because of that higher price

You are somewhat right about that Vinnie, less people would be inclined to buy gas at a higher price. However right now more people are willing to pay higher prices than consume less gas. Untill the price become unapproachable with current supply, the price will not go down.

 

[MtnBiker]

Originally posted by Cousin Vinnie


The bottom line in all of this is that we need to start switching to alternative energy sources before "all" of the world's oil run's out.

A couple of questions about this. First what kind of alternative energry sources do you believe will work for our economy?

Second when do you believe the world's oil will run out and how do you come to that assumption?

 

[Cousin Vinnie]

Originally posted by MtnBiker
A couple of questions about this. First what kind of alternative energry sources do you believe will work for our economy?

Second when do you believe the world's oil will run out and how do you come to that assumption?

I think as far as vehicles, electrical power and hydrogen fuel cells are a great alternative. They're not only completely renewable, but perfectly clean for the environment.
As far as commercial electricity, hydrogen fuel cells is also a good one along with solar power, wind power, geothermal power, hydroelectric power, nuclear power, etc.

It has been said that oil will run out within the next 50 years even if the refining process continues at the same pace as the present (undoubtedly more oil will have to be produced to meet overall growing demand in the world).

I say that there's no harm in beginning the process of converting to these alternative energy sources now. I believe everyone's just afraid to spend the money necessary for the switch-over, and they have to be willing to do so at some point. Why not now?

 

[MtnBiker]

Originally posted by Cousin Vinnie


I say that there's no harm in beginning the process of converting to these alternative energy sources now. I believe everyone's just afraid to spend the money necessary for the switch-over, and they have to be willing to do so at some point. Why not now?

Yup agreed, commercial nuclear would help reduce dependency on oil. And there are advantages to that situation.

 

[acludem]

Interesting, gas prices here have gone down 16 cents a gallon in two days.

acludem.

 

[Cousin Vinnie]

Originally posted by acludem
Interesting, gas prices here have gone down 16 cents a gallon in two days.

acludem.

That's another thing. I want to know how strict price regulations are on privately owned gas stations because prices are different everywhere.

This proves that the owner charges whatever they want. They even raise prices mult. time a day in some instances. The gas doesn't get any more value or lose value while lying in the groud. I can see changing the price with a new shipment, but mult. times a day.

 

[jon_forward]

that works both ways , the guy across the street drops his price by a nickel, the other guy has to or loss his market share. same with the up side cept they get to make a lil more. If you dont understand economics , how old are you anyway? 14?

 

[DKSuddeth]

the current regulations regarding gas prices is something like a 6.5% difference from the purchase price of the seller in surrounding neighborhoods. not an exact figure or quote

 

[Cousin Vinnie]

Originally posted by Cousin Vinnie
That's another thing. I want to know how strict price regulations are on privately owned gas stations because prices are different everywhere.

This proves that the owner charges whatever they want. They even raise prices mult. time a day in some instances. The gas doesn't get any more value or lose value while lying in the groud. I can see changing the price with a new shipment, but mult. times a day.

I can see that you didn't read what I wrote at all, just jumped on me because you are more content with personal insults than discussing the issues.

What I said is that I think the oil companies should be regulating the prices (they are the only ones that have any idea what the price should be--even though they can charge whatever they want and get it) instead of the gas station owner. Now, there's going to be some difference in price for competition purposes, but how can gas in some places go up a nickel or dime in one day and go down a nickel or dime in another place (acludem's quote above)?

 

[MtnBiker]

Originally posted by Cousin Vinnie


What I said is that I think the oil companies should be regulating the prices (they are the only ones that have any idea what the price should be--even though they can charge whatever they want and get it) instead of the gas station owner

Cousin Vinnie, how many oil companies are there in the world? How many locations in the world is oil produced? Do these oil companies compete with one another? Who uses oil? Why does demand go up or down?

 

[jon_forward]

capitalism at work. I worked a a gas station for a number of years. Everyday at 3:30 the owner would call the supplier for price quotes. If fuel was down 3 cents that day the price dropped 3 cents and ordered 2 tanker loads, if the fuel price drop was less then 3 cents the price dropped by that amount and he ordered 1 tanker load. If the price was up, he raised the price accordingly and hoped that the price would fall before the tanks needed refilled. In the wild days of the gas shortages, a swing of 20 cents wasnt unusual in a days time. as trading in fuel I believe stopped at 3:00pm cental that is why he called at 3:30, to get the closing price for the day. I hope that this helps you some.
You do have to remember that the profit margin on gas is very small. maybe 7 or 8 cents a gallon, the way that the station operator makes his cash is by the goods you buy before leaving his store. ccigs, coffee, soda's, chips,ect

 

[Cousin Vinnie]

Originally posted by jon_forward
capitalism at work. I worked a a gas station for a number of years. Everyday at 3:30 the owner would call the supplier for price quotes. If fuel was down 3 cents that day the price dropped 3 cents and ordered 2 tanker loads, if the fuel price drop was less then 3 cents the price dropped by that amount and he ordered 1 tanker load. If the price was up, he raised the price accordingly and hoped that the price would fall before the tanks needed refilled. In the wild days of the gas shortages, a swing of 20 cents wasnt unusual in a days time. as trading in fuel I believe stopped at 3:00pm cental that is why he called at 3:30, to get the closing price for the day. I hope that this helps you some.
You do have to remember that the profit margin on gas is very small. maybe 7 or 8 cents a gallon, the way that the station operator makes his cash is by the goods you buy before leaving his store. ccigs, coffee, soda's, chips,ect

Like I said, the value of the gas in the ground doesn't change as far as I'm concerned (only the value of a new tanker-full). As far as a swing of 20 cents in a day, the supply OR demand doesn't change that much in one day. Do you realize how much more money in the world is made by an increase of 20 cents per gallon. A reason for that drastic increase in price is beyond any shift in supply or demand that can possibly occur in one day's time.

 

[jon_forward]

Did you have to buy gas during the shortage of the 70's? It was like the wild west.