Gas prices and you

[Billfred]

It appears now that things are about to get ugly in South Carolina (home of some of the cheapest gas in the country). I was out today getting things, and one station had mid-grade going for over $3 per gallon. (Another sign on the grounds of the station was getting changed, and displayed lower numbers. I can't tell which was the case.)

These are the sorts of times I wish 1293 had more college student mentors--being able to split the cost of gas two or more ways would be heavenly!

[Katie Reynolds]

Last week, gas was $2.85 around Brookfield, WI.

Right now, it's $2.65 around Houghton. Should be going up again soon, though.

Rising gas prices affect me, because I live 6 hours away from home. Without a job, I don't know that I'll even be able to make it home for Thanksgiving, if prices keep going up.

[Jeff K.]

Just today, I was getting gas for my mom's car and the price was $3.05 at a 76, and across the street, at a Mobil, $2.95. Sanddrag is right about the price of oil rising after our involvement in Iraq started.

I'm just wondering though, who technically owns the oil that is exported from Iraq? Iraq, the United Nations, or the US?

[Jay H 237]

I just found an article on Yahoo news that prices have dipped slightly but may go back up due to Katrina. It also brings up the point of inflation like sciguy 125 mentioned. Here's the article.

One thing I've noticed is that at several stations near me diesel costs more than gas but gas is refined more...........go figure.

[tiffany34990]

around here i've seen 2.61... up to 2.69... hmm i don't drive so yeah... doesn't affect me much...

walk everywhere on campus or take the bus...yeah... fun stuff...

[santosh]

The circuitrunners drive down to Georgia Tech everyday from our school during FIRST season. Most of us live out of district from our own school. So basicallly, during FIRST season, I will be driving 90 miles a day. My car gets about 35 MPG. and lets ee, 90/35=2.57. That is how many gallons a day I will be using. Times that by how much gas costs lets say $3 by then. I will be spending about $7.71 a day. This is going to be fun. Especially whn we work like 5-6 days a wek for 6 weeks. 7.71*5*6=$231 for gas during build. Good thing we car pool.

yeah itll effect me terribly lol cuz i haveta pay for gas and insurance and all that...i think im just gunna stop driving period lol its way too much....why is it so much??? its like 3.29ish here...its moving up to 4.00 here soon...ayee

[Andy Baker]

Originally Posted by CourtneyB

yeah itll effect me terribly lol cuz i haveta pay for gas and insurance and all that...i think im just gunna stop driving period lol its way too much....why is it so much???

It is simple supply and demand. When supply is down, demand goes up. Merchants all along the supply line realize this and raise their prices. Once the prices go up and people start thinking "im just gunna stop driving period", then these same merchants think twice about raising their prices.

Also, when the cost to supply raises, the prices raise.

In this case, before Katrina, we already have the price for crude oil over $60 per barrell. Combine this with the fact that 10 oil refineries had their supply cut off due to the hurricane AND many drilling rigs in the Gulf are non-functioning, gas prices are going to remain high for quite a while.

Once the supply recovers and catches up with the level of demand, then prices will recede.

At this time, if governments capped gas prices (like they did in '73), then people would continue to buy gas at the same rate they have in the past and not change any of their habits. This would lead to a continued demand and an ever-decreasing supply. That situation would be scary since the supply side of the situation would not have a chance to catch up with demand. It is good that people like Courtney are thinking about "not driving period"... that helps the process much more than government control. This change of habit decreases demand and allows supply to recover.

A big fan of Adam Smith,
Andy B.

[SugaRaXie]

naah, gas prices won't affect me since I don't drive -- and it's not THAT much here...around $2 CDN [which'll be cheaper in american dollars] -- so yeah...its less compared to some but its practically double what the price use to be

[Kyle Love]

Gas is now steadily at around $2.76-2.81ish a gallon. For now, I'm content, it could be much more.

[KenWittlief]

Originally Posted by SugaRaXie

naah, gas prices won't affect me since I don't drive -- and it's not THAT much here...around $2 CDN [which'll be cheaper in american dollars] -- so yeah...its less compared to some but its practically double what the price use to be

isnt that $2 CDN per liter?

in the US its priced per gallon.

[sanddrag]

Originally Posted by Jay H 237

One thing I've noticed is that at several stations near me diesel costs more than gas but gas is refined more...........go figure.

Why is that anyway? Deisel here is like 6 cents more per gallon than premium gas. It used to be cheaper than regular. What happened?

[sciguy125]

Originally Posted by sanddrag

Why is that anyway? Deisel here is like 6 cents more per gallon than premium gas. It used to be cheaper than regular. What happened?

My guess is that it's supply and demand. I have a feeling that with increased oil prices, more oil has to be refined into gasoline to keep the gasoline price down. But that means less diesel, which drives the price up.

[Lisa Perez]

Why diesel is more expensive: http://www.fuelwatch.wa.gov.au/misc/dsp_faq.cfm#21

I believe it's the same general idea for the US; correct me if I am wrong, though.

[Wetzel]

Originally Posted by sanddrag

Why is that anyway? Deisel here is like 6 cents more per gallon than premium gas. It used to be cheaper than regular. What happened?

The EPA. Diesel gas used to have a much higher sulfur content. Beginning this summer, the EPA mandated low sulfur diesel. Reducing the sulfur content adds to the production costs, but significantly reduces particulate output of sulfur dioxide.
On a side note, I noticed today that diesel is again cheaper then regular gas.

Wetzel