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Archive for Wednesday, December 8, 2010

Price of gasoline could reach $3 per gallon by Christmas

Crude oil prices on the rise again

December 8, 2010

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Typically it’s the start of summer — not winter — when motorists can anticipate a jump in gasoline prices. But this holiday season, drivers should expect to pay more at the pump.

In Lawrence, fuel prices are already 12 percent higher than they were a year ago. On Tuesday, the average for the city was $2.81, about 3 cents higher than the day before and 29 cents higher than a year ago.

Most of the increase has occurred within the past month following a year of stability, said Jim Hanni, executive vice president of public affairs for Kansas AAA.

“This is a little unusual, this kind of run-up,” Hanni said.

Crude oil recently reached $89 a barrel, a price that hasn’t been seen since fall 2008. If the cost of crude oil continues to climb, analysts predict that by Christmas Day motorists across the country could pay more than $3 per gallon.

Scott Zaremba, president of Zarco 66, said it’s too early to say whether gas prices at his four Lawrence stations will go up over the holidays. Prices at his stations haven’t moved in four days.

“Commodity prices don’t seem to be in line with supply and demand,” Zaremba said.

In the past week, Hanni said three events have occurred to contribute to the spike in gas prices.

• After the European Union took steps to stabilize its sovereign debt, the euro strengthened against the U.S. dollar.

• Chinese manufacturing had grown at its fastest rate in seven months, easing concerns about a looming industrial slow down.

• Automatic Data Processing, the country’s biggest payroll processing company, announced that private-sector employment had 93,000 new jobs in November.

Hanni said he would have a better understanding next week of how higher gas prices will affect holiday travel.

So far, Beverly Falley, owner of Lawrence Travel Center, said she hasn’t seen a boost in airline tickets based on higher fuel prices. Instead the increase in plane ticket prices are attributed to fewer seats being available. And John Novotny, manger of Travellers Inc., said prices haven’t increased enough for airlines to tack on fuel surcharges, as they did when gas prices skyrocketed in 2008.

Comments

sunny 3 years, 4 months ago

Come on now camper...No one has cared about the national defecit for the past two years...why start now?

ol sunny has no personal debt....just so you know! Sunny doesn't spend what sunny doesn't have! Sunny doesn't have children that sunny can't feed.

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sunny 3 years, 4 months ago

Don't forget ol dude also tripled the national debt in only one year.

I'm feeling sad for all the little kiddies that won't get to enjoy a christmas this year due to mommy and daddy being unemployed. Bush tax credits should be made perminent and maybe the richest of Americans will get the economy going!

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notajayhawk 3 years, 4 months ago

TheWhirl (anonymous) replies…

"Gas isn't like any other commodity. It's a necessity. When gas gets this expensive it really cuts into my discretionary cash."

It is exactly like any other commodity. Is some gasoline necessary? Yep. Is all the gasoline we use necessary? Hardly.

I remember a story a couple of years back on Memorial Day weekend, when gas had passed $3 (on its way to $4). It was about the number of boats on Clinton Lake for the weekend, which was about the same as it was before gas started going up. Was that a necessity, Whirl?

Gasoline is the same as health care as far as being a 'necessity'. We need some of it, but not all of what we consume. And the market doesn't have to stop consuming a product altogether to drive the price down. When gas hit the $4 area last time, discretionary driving only fell off by about 10-15%, but it was enough to cause prices to start falling again.

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Shane Garrett 3 years, 4 months ago

Bought gift cards and a perscriptin at Dillions. Saved 30 Cents a gallon. Filled up my car and a 6 gallon can. I guess I am good for another week. Thanks Dillions.

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sunny 3 years, 4 months ago

If Obomba would have created the jobs he promised...people wouldn't be so upset over the gas prices.

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pace 3 years, 4 months ago

We need to quit being oil junkies. We need to quit being oil junkies.

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tony88 3 years, 4 months ago

This guy really has a nack for missing the point.

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independant1 3 years, 4 months ago

Greedy Oil Companies are made up of people. Greedy US Oil Companies run profits between 7-10%.

In USA from drilling to delivery at pump 9 million jobs and 7.5% of US GDP

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tony88 3 years, 4 months ago

Tip to "TheWhirl". Check your internal logic. You call me a liberal, but it is you with the sense of entitlement. I suggest you do some research. I can't waste anymore time giving you tips. Good luck. I hope you figure it out.

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BigPrune 3 years, 4 months ago

We should sell our crops like the Arabs sell us oil. How about a bushel of wheat for a barrel of oil? That sounds fair. People gotta eat.

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David Roberts 3 years, 4 months ago

Haven't you noticed food packages getting smaller (or just filled with more air and less food)? Where the item has remained the same, the cost has risen. This--and the price of oil--is related to a Federal Reserve Note that has fallen in value by 98% since the Fed was created in 1913.

Some day, you may tell your grandkids how you used to buy a gallon of gas for three bucks!

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RETICENT_IRREVERENT 3 years, 4 months ago

We need a government takeover of the oil companies, and kwikshops

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macon47 3 years, 4 months ago

i am waiting for the feds and the states to start taxing the electric cars than do not use tax paid gasolines

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Paul R Getto 3 years, 4 months ago

CreatureComforts (anonymous) says… We're still spoiled with cheap gas in the US, and especially in Kansas. $3 per gallon to create the platforms, do the drilling, pay the drilling crews, put it on a boat across the ocean, refine it, and ship it to Kansas...add taxes still, and $3 is pretty good in my book! ==== CC: Good point. The government has tried to keep the sheeple quiet for decades with cheap food and cheap fuel. We need to pay a higher price for our follies, and most, likely will. When W started the BS wars, I argued for a $1/gallon tax to pay for them. The idea wasn't popular then, and I doubt it would be now. We are foolish, selfish chimps, we are.

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CorkyHundley 3 years, 4 months ago

CorkyHundley (anonymous) says… A bunch of Arabic guys that call themselves OPEC sit around a table and set the price of oil with dollars. Now why would a bunch of guys with Arabic names want to hurt America when they know Americans live in their cars. It's unheard of to think any guy with an Arabic name would do anything to hurt the country. This has to be the Bushwhacker that is doing this.

December 9, 2010 at 1:14 p.m. permalinkreplysuggest removal

collapse tony88 (anonymous) replies… Hmmm... that's strange. Since we import more of our oild from that Arab country to our north called Canada than we do from any other country. Who is next on the list? Nigeria and Mexico. Wow. I had no idea the Arabs had taken over those countries!

December 9, 2010 at 1:30 p.m. permalinkreplysuggest removal TheWhirl (anonymous) replies… Canada isn't an Arab country. And it's companies like BP and Exxon that control the prices. They also have held down advancements like the 250 mpg carbarator that was developed in the 70s but then bought by the oil companies and put on a shelf somewhere. Hopefully someday we'll all have electric cars and can tell Big Oil where they can shove it.

December 9, 2010 at 6:10 p.m. permalinkreplysuggest removal collapse JayCat_67 (anonymous) replies… I'm getting a picture of Peanut with his hand flying over his head screaming "yeeeeeeooowwwm!"

December 9, 2010 at 9:50 p.m.

&&&&&&& Trump essentially said the same thing about OPEC.

OPEC is the benchmark for everyone else's price for a barrel of oil. For now, that price is determined in dollars.

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Richard Heckler 3 years, 4 months ago

Food for thought: The war is killing the economy not medicare, Social Security, public education or food stamps!!! In 2008 it has been determined the cost of war is at $3 trillion. What the media and politicians are not revealing is the estimated 35,000 disabled troops and their families that we taxpayers must support and rightfully so. The cost could well be $5 trillion in 2011.

  1. The U.S. health care system is typically characterized as a largely private-sector system, so it may come as a surprise that more than 60% of the $2 trillion annual U.S. health care bill is paid through taxes, according to a 2002 analysis published in Health Affairs by Harvard Medical School associate professors Steffie Woolhandler and David Himmelstein.

  2. Social Security adds to the deficit Reality: It's not just wrong—it's impossible! By law, Social Security's funds are separate from the budget, and it must pay its own way. That means that Social Security can't add one penny to the deficit.

  3. Benefit cuts are the only way to fix Social Security. Reality: Social Security doesn't need to be fixed. Baby boomers were being planned for decades ago.

But if we want to strengthen it, here's a better way: Make the rich pay their fair share. If the very rich paid taxes on all of their income, Social Security would be sustainable for decades to come. Right now, high earners only pay Social Security taxes on the first $106,000 of their income. But conservatives insist benefit cuts are the only way because they want to protect the super-rich from paying their fair share.

  1. Politicians forget to tell the news media privatizing Social Security will add $700 billion to the deficit annually for the next 20 years.

  2. Letting tax cuts for the top 2 percent—which were never meant to be permanent—expire as scheduled would pay down the federal debt by $700 billion over the next ten years.

  3. Medicare is NOT free. Millions of people using medicare insurance STILL pay into medicare insurance every month.

  4. The military industrial complex requires 60% of every tax dollar.... way tooo much money. REDUCE THIS BY 50%!

  5. Social Security is FREE? No way jose' people have been paying into this little nest egg for about 80 years.

Food for thought: The war is killing the economy not medicare, Social Security, public education or food stamps!!!

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Richard Heckler 3 years, 4 months ago

$3.00 per gallon is a bargain. Be damn glad Halliburton is in the mideast war zone not at our local stations.

Although $400 per gallon may well be about what we are paying considering the mammoth 10 year military operation to NOT let the people of Iraq and Afghanistan manage their own natural resources.

What a deal for Halliburton and their other corporate office in Saudi Arabia. $400 per gallon is bringing in ultra respectable profits. U.S. companies do not have to pay domestic income taxes on earnings of a foreign subsidiary until they decide to bring the money back into this country, a process known as repatriation.

Isn't this a lovely USA tax break for corporate america which encourages outsourcing and loss of USA jobs. Not to mention fat corporate wallets. Next time we hear the very few whining about taxes LET US REMEMBER what they are NOT paying taxes on.

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snappromotions 3 years, 4 months ago

Filled up the truck last night at something like $2.83/gallon. That's painful.

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lionheart72661 3 years, 4 months ago

Fuel prices always go up around holidays. I used to work at a convenience store and we raised the price 15 cents one time, not because crude went up but because some jackass in the home affice wanted to see if he could get the competitors to raise their prices. So the idiocy is at all levels...oh by the way it was Kwik Shop..those guys are thieves

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pooter 3 years, 4 months ago

We could have 25 cent a gallon gas today if our coins were still silver.

*

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macon47 3 years, 4 months ago

no one will drive less try any sat afternoon at 23rd and iowa cars are bumper to bumper no matter if gas is 2 or 3 bucks a gallon everyone just whines more

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sputum 3 years, 4 months ago

The good news is................... There will be a vaseline dispenser on every pump.

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ksrush 3 years, 4 months ago

E85 evaporates faster than regular gas. You pay less but a gallon wont get you as far.

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slowplay 3 years, 4 months ago

The biggest factor is always supply and demand. There are other forces that might come into play, but nothing affects the price more than supply and demand. Jim Hanni's second point, "• Chinese manufacturing had grown at its fastest rate in seven months, easing concerns about a looming industrial slow down." is correct, but it should be expanded to a more global increase in demand. That said, America is still the largest consumer of oil and as the economy grows, albeit slowly, we are driving more, flying more and and stimulating a fuel based economy. High fuel prices can reflect only two things: 1. A lack of supply, which , due to OPEC, is often purposeful but short term or 2. Higher demand, which is more sustaining and what we are currently seeing.

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Shane Garrett 3 years, 4 months ago

I drive 120 miles each day for work. They need to flatten out I-70 those silly flint hills causes my tachometer to peg at 3000 on cruise control. With a good run it stays at 2000 at 74 mph. Maybe I should try that E85?

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Flap Doodle 3 years, 4 months ago

It appears that California, New York & Hawaii have the highest state taxes on gasoline. http://www.taxfoundation.org/taxdata/show/245.html

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macon47 3 years, 4 months ago

people have whined about gasoline prices when it when over 25 cents a gallon. then when it went over 50 cents they cried and on and on and on however, no one drives any less or cuts back they just bitch more

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3 years, 4 months ago

Kapa'a, Hawaii

And yes, it's BEAUTIFUL here.

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3 years, 4 months ago

Oh cry me a river... Gas is $3.54 per gallon here.

You'll adapt. Maybe leave a 'dualie' at the trailer park.

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ksrush 3 years, 4 months ago

Good to see Obama is making things better by keeping the ban on drilling in the gulf. I think he's the best president in the United States of Arabia

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TheWhirl 3 years, 4 months ago

This is ridiculous. I don't care who is responsible but I'm tired of being gouged. There is no reason why gas should be more than $1.25 per gallon. Naturally the oil companies make their trillions while people like me suffer and then they work to hold down the alternatives that would free us from their dependence.

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CorkyHundley 3 years, 4 months ago

A bunch of Arabic guys that call themselves OPEC sit around a table and set the price of oil with dollars. Now why would a bunch of guys with Arabic names want to hurt America when they know Americans live in their cars. It's unheard of to think any guy with an Arabic name would do anything to hurt the country. This has to be the Bushwhacker that is doing this.

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gl0ck0wn3r 3 years, 4 months ago

Downside: inflation is making fueling my car with 93 octane more expensive. It won't run on anything less than 91. Silly Germans.

Upside: New tax law will fund my purchase of a second car - for winter - this weekend. Thanks Obama!

Upside: I'll likely be dead before anyone calls in our debts or oil becomes really problematic. lolz @ your kids.

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bearded_gnome 3 years, 4 months ago

Number_1_Grandma (anonymous) says…

I call BS.

The whole time we were spilling millions of gallons of oil into the ocean a day; for several months, the gas prices stayed the same. A coincidence......no. The oil companies wanted the prices to remain stable because americans were upset enough about the spill in the gulf. They ran adds to make us feel all warm and cozy about how much they care about us. Now that the well is capped and Christmas is a time for travel, they want to stick it to us! Send a message back to the big oil companies that we're on to them. Like Mr. Zaremba says “Commodity prices don’t seem to be in line with supply and demand.” Let's continue to get off oil by using less and using more efficient ways. Produce more compressed natural gas vehicles and use geothermal energy sources. Maybe, just maybe, we can truly have a merry christmas and have money hungry, robbing, dirtbags of big oil companies go bankrupt with no bailouts from taxpayers!!!

---just ignorant rant.
that leak didn't really impact the overall supply of oil.

Obama's decisions have impacted overall supply of domestic crude by stopping lots and lots of current and future offshore drilling/exploration, plus strangling regs.

Obama's choices have impacted supply dramatically.

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tony88 3 years, 4 months ago

What is with the american sense of entitlement to cheap oil? This is a commodity consumed worldwide, traded on the open market. If you all aren't aware of peak oil, you better start reading up on it, or you will likely starve or be sustaining the last shreds of your livelyhood on government cheese and gruel in the next 10 years.

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kernal 3 years, 4 months ago

So? We were told it would be $5.00 by now a few years ago. Big deal. At least we don't live in Europe. Some people still don't get it. Fossil fuels are not going to last forever. Plan ahead and it won't hurt so bad.

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Flap Doodle 3 years, 4 months ago

The role of Dick Cheney in the death of Titus Oates (1705) has never been fully investigated hmmmmmmmm

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Richard Heckler 3 years, 4 months ago

Halliburton defrauding the government of Billions of taxpayers dollars Updated on Thursday, April 23, 2009 in General Corruption, OIL

http://fuel-efficient-vehicles.org/energy-news/?p=749

If memory serves me well Halliburton and Dick Cheney are close friends as the former CEO...

Oddly Halliburton relocated to Saudi Arabia to avoid extradition if necessary hmmmmmmm

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Richard Heckler 3 years, 4 months ago

According to reports, the US Marines in Afghanistan use 800,000 gallons of gasoline per day. At $400 per gallon, that comes to a $320,000,000 daily fuel bill for the Marines alone. Only a country totally out of control would squander resources in this way. http://www.counterpunch.org/roberts10222009.html

The Pentagon pays an average of $400 to put a gallon of fuel into a combat vehicle or aircraft in Afghanistan. http://thehill.com/homenews/administration/63407-400gallon-gas-another-cost-of-war-in-afghanistan-

Flushing More Money Down the Afghan Toilet - CBS News http://www.cbsnews.com/stories/2010/05/11/opinion/main6471802.shtml May 11, 2010 ... We're spending on average $400 per gallon to transport gas over extended and difficult supply lines into Afghanistan where the U.S. military ...

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bearded_gnome 3 years, 4 months ago

wow, amazing how much that d---d Bush is blamed for these days!
I'm just certain this is his fault too!


seriously, barrels of crude, and bacon by the pound got really expensive all of a sudden. why? Obama weak $ monitary policy, the beginning of inflation. your dollars are literlly worth less today than they were a month ago.

tried to warn you guys not to vote for Obama.

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notajayhawk 3 years, 4 months ago

"Send a message back to the big oil companies that we're on to them."

You're just catching on to them, granny?

Why is the price of gasoline set any differently than any other commodity or service, and why should it be? This is a pretty simple equation, folks. Keep buying it, they'll keep selling it. Keep buying more of it, they'll sell it for more. You don't like the price? Don't buy it. Your astute observation was absolutely correct - the price has nothing to do with shortages or oil spills or civil unrest in Upper Backwardsgolaftiksburg. They sell it for what you'll pay for it - again, just the same as any other commodity or service.

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Flap Doodle 3 years, 4 months ago

Internal combustion lawn mowers are killing the planet. "...Estimates vary wildly, but it's likely Americans burn more than 600 million gallons of gasoline a year cutting the grass. Hell, the EPA estimates at least 17 million gallons of gasoline are spilled annually just filling lawn mowers..." http://www.straightdope.com/columns/read/2967/does-using-a-gasoline-powered-lawn-mower-produce-as-much-pollution-as-driving-an-suv-300-miles Stop using internal combustion lawn mowers and stick it to the big bad oil companies! Free the stump!

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Richard Heckler 3 years, 4 months ago

Inflation driving up cost not local demand necessarily...

Cut back on driving is the only answer that makes any sense.

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tifosi 3 years, 4 months ago

The gas god you refer to is the wholesale supplier. Wholesale fuel prices change multiple times per day and most stations that are pumping any volume of fuel are receiving a load at least every other day of the week. Fuel profits are measured in pennies and when you factor in credit card interchange fees, most gas stations break even on the sale somewhere around 8-10 gallons pumped per transaction. If a gas station doesn't make adjustments each time fuel is delivered, they will never stay profitable. When gas staion A's delivery forces their retail up, gas staion B's delivery as well as gas station C's delivery is not far behind as well as their subsequent price increases.

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Richard Heckler 3 years, 4 months ago

China has been buying up oil reserves around the world where possible which has angered the USA government. Perhaps China does not want its economy tied to USA control of oil around the world.

Also USA gasoline refineries have been exporting larger than usual amounts of gasoline which = higher gas prices for some reason. Perhaps to war zonesLogic leaves me.....

Rumor has it that taxpayers are being billed $400 per gallon for gasoline in our war zones... try Afghanistan. Perhaps the more important question here is why the military is paying Halliburton $400/gal for gasoline?

Sooooo there we have it.

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CLARKKENT 3 years, 4 months ago

WHAT I WOULD LIKE TO KNOW IS WHO IS THE GAS GOD IN LAWRENCE. IT SEEMS LIKE A PHONE CALL IS MADE AND EVERYBODY GOES UP AT THE SAME TIME. I THINK THERE IS PRICE FIXING IN THIS TOWN. I WOULD JUST LIKE TO KNOW WHO IS THE PERSON, SO I COULD AVOID THAT STATION OR STATIONS.

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Liberty_One 3 years, 4 months ago

This is directly related to QE2 and the Federal Reserve. Remember, inflation is not an act of god, it is government policy.

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handley 3 years, 4 months ago

If you will notice gas prices didn't go up till after the election and the Republicans won a landslide?

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handley 3 years, 4 months ago

If you will notice gas prices didn't go up till after the election and the Republicans won a landslide?

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kernal 3 years, 4 months ago

From what I've seen, more of you need to be walking instead of driving short distances. By short distance I mean a mile, or less.

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corey872 3 years, 4 months ago

Dare I say 'Here we go again.' As long as we rely on foreign countries for such a valuable resource, we are going to be subject to large price swings.

I've been using E85. A 12% loss in mileage, but about 15% cheaper fuel - so it's putting a little money in my pocket vs gas. Though if gasoline takes off in price, hopefully ethanol will lag behind. Several months ago, E85 was ~25% cheaper than gas which was a real savings! Either way, I'd rather employ an american farmer than equip a foreign terrorist with guns and bombs.

[fire suit on, let the flaming begin]

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Richard Payton 3 years, 4 months ago

Can't wait for cars that run on B.S.!!

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CorkyHundley 3 years, 4 months ago

The Dude needs to ban drilling in the gulf to increase the amount of oil that can be made into gas. Then the price will go down. Also, the Dude needs to print more money flooding the market with cash. Then the price will go down.

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CreatureComforts 3 years, 4 months ago

We're still spoiled with cheap gas in the US, and especially in Kansas. $3 per gallon to create the platforms, do the drilling, pay the drilling crews, put it on a boat across the ocean, refine it, and ship it to Kansas...add taxes still, and $3 is pretty good in my book!

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pooter 3 years, 4 months ago

Oil is like gold.

The cost of oil is not going up, the value of the US dollar is going down.

*

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Tom Shewmon 3 years, 4 months ago

Obama, Pelosi and Reid say: Merry Christmas!

Hope, change, new direction, yes we can, fundamental transformation, energy costs will "necessarily skyrocket", "spread the wealth around", "first time proud to be American".......Meeeerrrry Christmas!!

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bobberboy 3 years, 4 months ago

this is the way the oil companies say BA HUMBUG ! and by the way give us some presents too.

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Number_1_Grandma 3 years, 4 months ago

I call BS.

The whole time we were spilling millions of gallons of oil into the ocean a day; for several months, the gas prices stayed the same. A coincidence......no. The oil companies wanted the prices to remain stable because americans were upset enough about the spill in the gulf. They ran adds to make us feel all warm and cozy about how much they care about us. Now that the well is capped and Christmas is a time for travel, they want to stick it to us! Send a message back to the big oil companies that we're on to them. Like Mr. Zaremba says “Commodity prices don’t seem to be in line with supply and demand.” Let's continue to get off oil by using less and using more efficient ways. Produce more compressed natural gas vehicles and use geothermal energy sources. Maybe, just maybe, we can truly have a merry christmas and have money hungry, robbing, dirtbags of big oil companies go bankrupt with no bailouts from taxpayers!!!

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ChiHawkInKS 3 years, 4 months ago

I hope someday there is some sort of a federal regualtion on gas pricing. The rising price of gas puts a tremendous amount of strain on the economy.

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