With the Memorial Day holiday still about three weeks away, national gas prices have surged to a record nationwide average of $3.07 per gallon. And we thought it was bad in 2006? Not so, it appears. That new record is almost $0.20 higher than two weeks ago, and the former record of $3.03 per gallon set in August of 2006 is now a distant memory.
So, are you ready to fuel up that full-size SUV and drive a few thousand miles for a vacation soon? Perhaps not -- it may be cheaper to fly to some destinations. Regardless, possible concerns over the inventory of refined gas and oil are driving prices of "at-the-pump" gas through the roof once again, but are we near the peak yet? Can gas prices go any higher? Some industry analysts think the peak may be near -- but then, will prices level off from the peak?
What happened? Recent increases have their roots in refinery problems, like a BP (NYSE: BP) plant that is not up to full capacity production due to unexpected repairs. When inventory fears run their course and refinery problems dissolve as much as possible, will gas prices decline or stay near the peak of where they are now? Hard to say, but until then, be cautious with all the driving or your pocketbook won't know what hit it.
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Reader Comments (Page 1 of 1)
5-07-2007 @ 2:30PM
Tom Macuk said...
We are so stupid,First of all,Thay could raise the
fuel prices to $20.00 a gal,You would still have the Idiots go around you at 80 miles an hour,#2you still carry the full tank around,measure appx. how much gas you will actually need,buy that amount only,
#3 No matter how much,the holiday,visit means,hurt as it may(sacrifice,)don't go this year ,or put it off for a week.Refinery problems,Bull!!!
5-07-2007 @ 2:55PM
Rebeakh said...
I find it rather interesting that gas prices have more than trippled in the past 7 years. Before this 7 year period gas went up maybe a few cents a year. This wide difference in inflation does not make sense to me. Would someone care to explain from an economic standpoint how this makes sense? From the people whom I have spoken consumption has gone down, so shouldn't the price stop rising if it is a supply problem and consumption goes down?
5-07-2007 @ 3:36PM
mike said...
I think the entire thing is run by GREED! The people that set the futures are making a killing on this, and so are the people sitting on top of the big oil companies (BP, EXXON/MOBILE). They all know that we need and will continue to buy gasoline. How else are we going to get to work or the grocery store? So why would they lower the prices? They are making RECORD PROFITS!!! At our expense.
ON MAY 15th PEOPLE ACROSS AMERICA ARE PLANNING A GAS OUT. THEY ARE NOT GOING TO BUY GAS THAT DAY. IT HAS BEEN SAID THAT IF JUST THE 73 MILLION AMERICANS ON MYSPACE.COM DONT BUY GAS ON MAY 15th IT WILL COST THE GAS/OIL COMPANIES 2.2 BILLION DOLLARS IN PROFIT. IMAGINE IF ALOT MORE PEOPLE JOINED IN. LETS HIT THEM WHERE THEY HIT US!!!
5-07-2007 @ 9:54PM
Jay said...
next excuse would be "global warming is dramatically increasing and to discourage solo drivers and those of the like from driving around EVERYWHERE, prices will continue to go up"as soon as most of US drivers convert to electric vehicles, theres gonna be a HUGE surge in prices with that. if other nations were as capitlistic as ours, i seriously doubt we would be as "Great" as we think we are. money isnt everything... unless u live in the U.S of A
5-07-2007 @ 4:32PM
Warren said...
Way back in 1974 there was a "shortage" of gasoline.
It resulted in a psuedo rationing system where pleasure vehicles could only fuel up every other day. If the vehicle plate number ended in an odd digit it could only get fuel on odd numbered days. If it ended in an even digit, then it could only be fueled on even numbered days. Not a perfect system, but it did slow down consumption somewhat. Now I may just be an old man who doesn't understand what is happening, but it seems to me that any real shortage would warrant some sort of rationing. The fact that there is no rationing indicates to me that there is no shortage and therefor these daily increases are nothing more than charging what the market will bear. The price of crude, although subject to frequent changes, doesn't go up on a daily basis. They can say all they want about refineries being shut down for repairs etc., but give me a break, refineries have always had to have periodic repairs. If each price increase we have seen in the past three years were due to a refinery being shut down you can bet your life there would be rationing. A rose by any other name is still a rose. The same thing can be said about thievery.
5-07-2007 @ 4:12PM
paula said...
the gas prices are a rip-off ! it's really funny to hear our so called public servants stand and tell us to cut back on usege. we pay them people with our taxes. they take these un-needed trips all around the world,we pay for their tickets and the fuel they use [drive or fly] if they want more money they vote themselves a raise. i live on a s.s. ck. they tell me what the cost of living increase will be.gas prices increased when the idoits went to war !!!! why don't they put a cap on the price of gas,it's been done in the past.oil co. are suckng us dry,and our govt.can't see it !!!!
5-09-2007 @ 8:37AM
enetbanker said...
Well, Ethanol is not the answer. It'd an environmental disaster and you will feel it at the supermarket real soon. We live in a wide open country not Brazil or Peru or any other European style country. They can and do have "mass" transit we don't. They are pure socialist..we aren't..not quite yet.
So, until people get out of their cars, live on a mass transit line or live in a commune, people are going to drive their cars for whatever reason.
Get ready because gasoline could be $5.00 this summer and you can blame your government, the EPA, greepeace, the War, terrorists or whoever controls the price of crude. People have tried to build more refineries but the regulations and "not in my backyard" syndrome has deterred such endeavors.
You can't have it both ways. And, the "nmby" folks will suffer, just like you will for electricity. The electrical "GRID" is screwed up and getting worse and people are burying their heads in the sand on that one as well.
We live in Houston, have the refineries and the pollution but that's just the way it is and we pay over $3.00 for gas just like the rest of you. Oh, check out how much in "taxes" are added to your gallon of gasoline in your state and this varies state-by-state not counting the good old USA taking their cut.
So, it's not all profit as you believe, the government has it's hand out as well and we are at the mercy of "global" oil consumption...think China and India. They are building refineries and electrical utilities at a break neck pace for their people. It's all macroeconomics and the "trade deficits" with China and India. My ecomomics college professor told us long ago..."he who manufactures owns the World". Well, we lost that a long time ago with our standard of living and inflation thanks to deficit spending by your government, which by-the-way started with President JFK.
Want to do something about it...stop shopping at Wal Mart, volunteer in your town & live your life happy and thank God everyday that your living in the USA not Sudan or some other blighted country.
5-09-2007 @ 3:55PM
Mark Richert said...
Even the gas companies have to cover their costs, I wish they would cover mine, they could finance the war in Iraq, they should!
5-09-2007 @ 3:43PM
Lisa said...
Since I don't consume a lot of gasoline (I don't own a car), gas prices don't affect me much. They affect me a little in indirect costs, but it's nothing I can't afford. I don't spend much anyways because I don't like shopping and I do like saving and investing.
Where I get wound up is when I find people carrying on about gas prices being so high. Why should I or anyone else subsidize their chosen lifestyle? Why should I pay taxes to send troops to Iraq to keep gas prices low? I don't mind subsidizing basic human needs, like a minimal level of shelter, food and medical care for everyone, but I do object to the implication that I should subsidize some blowhard's McMansion 40 miles from his work place, his SUV, his appliances and his stuff.
I think that if you want a lavish lifestyle (and to me, having a clothes dryer at home would be a lavish lifestyle, so we ain't talking Paris Hilton lavish here), that you should have to pay for that lifestyle, as well as the environmental and economic consequences of that lifestyle.
As far as I'm concerned, a 5 dollar per gallon tax on gasoline would be a good thing.
5-12-2007 @ 5:10AM
netoob said...
Break up the giant oil companys, there profits are to big. Split up the oil companys and with more compotion the price of gas should go down. If not at least the profits will be split up between more corporations.
5-10-2007 @ 4:29PM
James said...
Google Peak Oil. If you believe that we are beginning to run out, then these prices aren't unbelievable.
Virtually all the oil companies have been bringing less gas to market for the last 5 years.
5-11-2007 @ 4:05AM
thenemo1 said...
Let's face it the oil corps are just testing us to see how much they can get for petro before we cut back. We better go and cut back soon like in May 15th. or we will be economic slaves even worse than we already are.
American corporation have done surveys and testing shows americans will spend what ever they have to in order to enjoy them selves. They feel they deserve it.
Tat it is a right they deserve.
Just look at the prices of baseball tickets forget taking your kids to the ball park.
Concerts the sane thing.
Heating oil is either so bad quality wise that it ruins your burner operation or plain unaffordable less money taken out of your food budgetand or medication budget.
Medical Insurance is almost off the board.
Pensions are being stolen and or reduced.
PS: If you fly to Orland o better check what the parks get for a ticket.
Worse than baseball parks because you can't see the sights in one day.
5-13-2007 @ 8:03AM
KMA said...
want to revolt? stop using your credit cards and gas cards.pay off your balance, [or dont pay it at all]. then cut back your gas useage.this will send a message to all big buisness that we are not going to take this anymore. in 1955 one person had to work to support a household. look at today. we have become enslaved by big goverment and big buisness . our politicans have sold out to special intrest groups [big buisness].in other words these guys have joined forces to rob us of every last cent that we have.odds are yhat most if not all of your earnings are going for some sort of payment every month, right? think about it...
5-21-2007 @ 4:05PM
David W said...
Well, the answer is to require all canidtates who run for office to share their investment portfolios. Once the voters have these portfolios available then the entire nation can vote and replace each and every candidate, incuding the president, with representatives that do not hold stock in any oil related industry. If successful, we will have representatives in office who will not be in debt to any oil company special interests. Ultimately, we can hurt them and hurt them good.