HOW HIGH WILL GAS BE ?

Gas prices are surging ahead of Memorial Day Weekend - how high will they go?



In Los Angeles area its $2.45 a gallon for 91 Ocatane

I don't see anyone taking action to slow gas prices down.
Car Pool. Cuts you gas bill in half immediately. It could even affect the gas producers, take a little wind out their sail.
And, you have someone in the car that probably shares your views; you won't have to listen to some self proclaimed genious DJ on the radio.

AS of Tuesday May 19, 2004 8pm Long Beach area, Southern California, USA

Gas $2.54 a gallon for 91 octane!

The price of gasoline continues to move higher and chances for any relief before the Fourth of July appear to be remote.

Higher prices also are beginning to take a toll on the economy and could begin to slow the pace of economic growth if they continue through the summer. Wal-Mart, the superstore chain that supplies necessities, clothing and modest luxuries to millions of American households, estimates that higher gasoline taxes are now costing the average American an additional $7 per week, which means they have less money for something else.

Rising prices for fuel also are contributing to fears of resurgent inflation, because it has helped boost the price of transportation. In addition, petroleum is also a basic feedstock for all kinds of plastics and synthetic fibers used in thousands of different products.

Inflation and prices: up?

With the summer driving season ready to begin, prices are higher than many motorists can ever recall. And comments from pundits, who note that in real terms gasoline prices are still lower than they were in 1981 and that the U.S. economy uses about half as much energy per unit of output than it did in the early 1970s, have begun to wear thin. Inflation-adjusted prices have exceeded the levels posted in October 1990 when the Iraqi army invaded Kuwait, triggering the first Gulf war.

U.S. gasoline stocks, one of the most reliable indicators of future prices, actually dropped last week, according to the U.S. Department of Energy. The drop prompted traders to bid up futures linked to price of oil set for delivery through June.

The national average for gasoline across the U.S. is $1.950, 9.3 cents higher than the prior week's average, and more than 45 cents higher than last year's average, according to the AAA. The Texas average for a gallon of regular self-serve jumped 8.7 cents to $1.817 a gallon. "With crude oil prices closing at more than $40 a barrel this week and demand for motor fuel at an all-time high, it appears that there is no price relief in sight for motorists," said Rose Rougeau, spokesperson for AAA Texas.

In Southern California, the average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.266 a gallon, which is 8.2 cents higher than the previous week and 37 cents higher than last year. Motorists in the Central Coast pay an average price of $2.387, which is 6.6 cents higher than last week, eight cents above last month and 40 cents higher than last year, according to AAA. Premium grades are even more expensive, with $3 signs beginning to appear next to top grades. "Analysts say that there is continuing concern by traders that gasoline demand in the summer may outstrip supply. These supply jitters are pushing prices up so much that we are seeing new retail price records daily throughout Southern California and the nation," said Carol Thorp.

Psyched out

There also are some sign that the higher prices are beginning to have an impact on the collective psyche of new car buyers. One sign of the changes, is that GM has boosted incentives on full-size sport utility vehicles.

Analysts from Edmunds.com have concluded that car buyers are definitely looking for more fuel-efficient cars. A separate survey by the publishers of Kelley Blue Book indicates that 40 percent of all potential buyers are looking for more efficient vehicles.

Meanwhile, concern that the economy is in for another "oil shock" are beginning to grow for a host of economic and political reasons. For starters, the global economy continues to grow, and the expansion is sending up the prices of the most desirable grades of relatively low-sulfur crude, which is now much preferred for gasoline. Even China, long regarded as an environmental sinkhole, now has tight restrictions on the presence of sulfur and lead in motor fuel.

Meanwhile, the refinery capacity that can turn sulfur-rich crude into

Everything is cyclical (including higher fuel prices during holidays). The provider wants to make more money, on less production ... then complains when the consumers cuts back on consumption. When sales go down, the provider must make more product, to make more money.

Consumers probably don't realize the impact that gasoline and oil have on their end product (whatever it may be). The raw consumer good(s) must be shipped to a manmufacturer, who ships it to a wholesaler, who ships it to a retailer. The finsihed product has been transported 3 times ... and SOMEONE has to pay for the transportation costs.

I would like to see NO taxes or surcharges on gasoline and diesel. Ideally, trickle down economics would suggest that prices on almost everything should be reduced.

State and Federal gasoline taxes based on a gallon of gas very fairly pay for the proportionate amount of road usage.

I understand your thoughts ... to a degree. My point is that the higher the price of fuel ... the higher the transportation costs ... which equates into higher costs for most everything else. As to paying for highway maintenance ... my C5 doesn't do any more damage to the roadways, as compared to my wife's Saab ... which gets about twice the gas mileage ... hence ... driving the Corvette ... I pay about 2X more than my wife. Then there is the use of gasoline for generators, lawn mowers, etc ... none of which necessitate highway maintenance.

I know that in some states, owners must pay a state registration fee based upon the value of the vehicle. Perhaps it should be revamped to coincide with the weight of the vehicle, and miles driven?

Just thinking out loud.

now $2.60 (91 Octane) in Long Beach, California area SUNDAY MAY 23, 2004

|UPDATED|5/23/2004 7:36:38 PM (AZT)|/UPDATED|

Ernie...The C5 isn't running 87 Oct is it?

My C3 does and I'm "enjoying" $1.88 / gal.

Scot

Yes, running 87 Octane at $2.40 a gallon. On my 02 vette

Just quoting the high side of 91 Octane