Gas prices rapidly approaching $4.00 a gallon

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thejuggernaut's picture
thejuggernaut
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Gas prices rapidly approaching $4.00 a gallon

As I was standing in line at Chevron today, I overheard the cashier telling another customer her boss hadn't changed the prices for gas yet, even though he was currently operating at a loss. The price for a gallon of regular gas stood at $3.99. She said next week that would change to $4.09. A little more than a month ago I filled up for $3.14 a gallon. What is going on in your area, and does anyone know what is driving fuel prices up so high so fast? I'm in the Pacific Northwest, for what it's worth.

Saffron's picture
Saffron
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We topped that last week ...

The price at a local Costco was $4.05 Thursday evening when I went by ... dh drove by it fairly early the next morning and it had jumped to $4.13. 

$4.35 today (though that wasn't the Costco station.)

We're in San Diego. 

There doesn't seem to be much talk about it either ... brief mentions about it here and there, but no overall outrage ... not that it would do any good ... there's a lot to be outraged about these days and plenty of people pointing them out, yet the blissfully ignorant will continue to harp on about the improving economy. 

~ s

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jumblies
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UK Petrol Prices for Sunday 26th February 2012

From http://www.petrolprices.com/

 UK Petrol Prices for Sunday 26th February 2012

  Avg Min Max
Unleaded 136.63p 119.9p 146.9p
Diesel 143.96p 137.9p 155.9p
Super Unleaded 144.25p 134.9p 159.9p
Premium Diesel 151.99p 143.9p 159.9p
LPG 74.74p 66.9p 89.9p

1 US gallon = 3.79 litres * 1.3663 pence per litre * 1.585 (GBP -> USD) = $8.20 per gallon in the UK.

 

mainebob's picture
mainebob
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Gas "Heat Map" USA

Here is a great map showing the gas prices by county for all of the USA by using heat colors... red for high prices:

http://gasbuddy.com/gb_gastemperaturemap.aspx

It is amazing to see the nationwide variation in price.

-MaineBob

 

Doug's picture
Doug
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This AM gas was 3.70 at the

This AM gas was 3.70 at the local indian reservation where prices are generally about $.20 cheaper than off-res stations.  Consistent with the map.

Doug

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
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Okay for now....

$3.48 on the base this morning.  Same price for 10 days.  We lag the general area by $.15 -.20

Wendy S. Delmater's picture
Wendy S. Delmater
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why gas prices go up

Nice find on the gas price map, Mainebob.

You will all notice, even Jumbles in the UK, that differences in gasoline prices are to a large extent a function of taxes national, state and county/provincial taxes. Note how California, for example, is all red and the surounding states are not.

As to why the base price underlying the gasoline/petrol taxes keeps rising? That has been covered many times on this site, but to sum up the many reasons as I understand them:

1. Supply: Supply is finite. Oil is a scarce resource, and getting scarcer. See the Energy portion of The Crash Course for more info.

2. Demand:  Meanwhile demand, while fluctuating, is growing overall.

3. Devaluation of currencies: The world at this point runs on 'fiat' currencies, not backed by anything solid, and when governments (like the USA and Europe's and Japan's)  try to deal with debt by electronically printing more money--or creating it by making loans out of thin air--you get inflation. There are still X number of barrels of oil but now your money is worth less per unit, so it takes more units to purchase the oil.

4. Uncertainty: Market uncertainty about things like the possibility of a war or confllict with Iran, plus market uncetainty about a 'contagion' of things like Greek debt are not helping. A war in the Middle East will make the scarce resource even scarcer, at least temporarily, by cutting off shipping routes if nothing else. Greek debt (and that of the rest of so-called PIIGS--Portugal, Ireland, Italy and Spain, who are merely the worst of a heavily indebted European Union) has things called 'derivatives' attached to it. Derivatives are unregulated financial intruments some of which are a kind of insurance that only gets paid if a creditor defaults. If Greece defaults, these 'insurance' obligations will trigger, which will cause the world to see that the derivatives issuers are woefully underfunded and cannot pay...which will cause a chain reaction as those who are underfunded are revealed, layer by layer all the way to the top.

Most of this derivatives mess is because the 'assets' that are used to back such things are based on the concept of 'fractional reserve" - where you have, say, a million bucks in your bank and make loans for ten million bucks based on that reserve of one million. If a loan for a million off that reserve goes bad, legally the bank has to 'up its reserves'  to that ten-to-one ratio (usually it's higher) - or lend out less to get down to the legal ratio. If derivatives were bought by banks...they will be and are in bad shape. Add to this that accounting-wise, a loan to be repaid is considered an asset on a balanace sheet. If enough loans go bad, and they have thanks to the sub-prime mortgage debacle, banks can become technically insolvent. THIS means a jittery stock market where people try to invest their pensions in 'real things' not affected by accounting tricks: things like oil, gold, and other commodities. It can push the futures contracts for such commodities as oil higher, but that is not so much 'speculating' on the price of oil as it is being desperate for a place to put your pension funds that will not go down in value like your house, your currency, or your stocks.

 

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Ready
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jumblies

jumblies wrote:

From http://www.petrolprices.com/

 UK Petrol Prices for Sunday 26th February 2012

  Avg Min Max
Unleaded 136.63p 119.9p 146.9p
Diesel 143.96p 137.9p 155.9p
Super Unleaded 144.25p 134.9p 159.9p
Premium Diesel 151.99p 143.9p 159.9p
LPG 74.74p 66.9p 89.9p

1 US gallon = 3.79 litres * 1.3663 pence per litre * 1.585 (GBP -> USD) = $8.20 per gallon in the UK.

 

 

What's premium diesel? In the US there's D1, D2, Offroad (pink dyed, no road taxes but otherwise D2) kerosene, and a few others like JetA and JP8, but this appears to be for consumers. Just curious if you know the differece between Diesel and Premium Diesel?

 

Thx

R

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jneo
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    $3.77 for low grade.

 

 

$3.77 for low grade.  $3.93 for higher in ohio

 

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jneo
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    $3.77 for low grade.

 

 

$3.77 for low grade.  $3.93 for higher in ohio

 

gregroberts's picture
gregroberts
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You can still buy a gallon

You can still buy a gallon of gas for less then a 90% silver quarter, currently priced at $6.59.

http://junksilvertrader.com/junk-silver-coins

SagerXX's picture
SagerXX
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$3.91 to $3.97 here in the Mid-Hudson Valley

 ...and well over $4 in Westchester County...

jumblies's picture
jumblies
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Ready wrote: What's premium
Ready wrote:

What's premium diesel? In the US there's D1, D2, Offroad (pink dyed, no road taxes but otherwise D2) kerosene, and a few others like JetA and JP8, but this appears to be for consumers. Just curious if you know the differece between Diesel and Premium Diesel?

It's diesel with a high cetane number (diesel equivalent of high octane gasolene).

From this page

Because diesels rely on compression ignition (no spark), the fuel must be able to auto-ignite--and generally, the quicker the better. A higher cetane number means a shorter ignition delay time and more complete combustion of the fuel charge in the combustion chamber. This, of course, translates into a smoother running, better performing engine with more power and fewer harmful emissions.

I just learnt something new 

jasonw's picture
jasonw
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I said goodbye to $3.XX gas a while ago.

Sunday best price - $4.05 - Northern California, Yuba-Sutter - And that is the cheapest of the cheapest gas.  Arco Cash price - $4.08.  The lady next to me was not happy while filling her Expedition.

SailAway's picture
SailAway
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Go CNG if you can...

 Natural Gas has been going down during the last few months. I pay $1.925/Gallon these days at my SDG&E station here in San Diego. My Honda Civic GX is an excellent commute car.

 

 

Damnthematrix's picture
Damnthematrix
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stop whingeing.......

Heard on Australian Radio National yesterday......  Aussie gas heading for $6.30/gall within two weeks......

Mike

Arthur Robey's picture
Arthur Robey
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$6.30 a gallon DTM?

$6.30 a gallon. And only one payday between now and then. This is getting out of hand.

And the airlines? Fly in, fly out  to the mines will become unviable.

This is going to rattle some Left Hemispheres. I predict an increase in suicides.

jumblies's picture
jumblies
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Arthur Robey wrote: And the
Arthur Robey wrote:

And the airlines? Fly in, fly out  to the mines will become unviable.

This is going to rattle some Left Hemispheres. I predict an increase in suicides.

Can you explain that one? Either it's this cold I'm nurturing or I'm just dumb, but I keep reading the above and cannot extricate meaning from it.

 

Arthur Robey's picture
Arthur Robey
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Apologies Jumblies.

The Left Brain makes models of reality.  This is a valuable service that the Left brain does for the Right.

However the Left is a Rationaliser. It tries to bend the facts to suit it's models, until the Right (holistic) brain assumes command and imposes it's views on the Left. This is a moment of crisis for the Left.

Here are  explanitory videos.

And this TED talk by Jill Bolte Taylor
 

Wendy S. Delmater's picture
Wendy S. Delmater
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remote locations

Jumbles -

Authur Robey is an Aussie. They have some very remote mines that are only accessible via airplane, and I think he is referring to how expensive getting to such a remote loaction might become with higher fuel prices.

The same thing might be said of places like Nome, Alaska, where except for barges in the summer all their supplies come in via airplanes. They might have to go back to the Iditatrod.

jumblies's picture
jumblies
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Thank you SafeWrite and

Thank you SafeWrite and Robey. That TED talk was pretty powerful stuff. What an experience and I'm surprised she wasn't consumed by fear as she, perhaps more than anyone, would know the damage being done to her brain. Interesting how she can recall how she felt as the one half of her brain zoned out. I would've thought that once it came back it would impose a perception shift onto her memories.

 

FriscoMike's picture
FriscoMike
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 $3.50 here in Texas and

 $3.50 here in Texas and rising.  I witnessed $3.69 on my way home from the airport last night.  Typically, Texas lags as it is close to the refineries and have the WTI trade.

Poet's picture
Poet
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Posts: 1891
Stagflation

Makes me glad to have a 1-mile commute to my current job... Even if I have only had a 2% raise in 3 years and everything else is going up in price.

Poet

tricky rick's picture
tricky rick
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Costco gas

I see Costco posted good profits in last quarter...  they attribute to their cheap gas.

Just paid $ 3.21 a gal ... gotta get the motorcycle out...

tictac1's picture
tictac1
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Posts: 175
HA!

gotcha all beat, it was $4.51 here, as of this morning...

As for the WHY, how about this?

Massive amounts of liquidity meets speculators watching the most war-like country in the world threaten to bomb Iran.  One sentence explanation, prove me wrong!  :)

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
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Posts: 2606
Whipsaw....

$3.52 on base today.  Down $.04 since Tuesday....

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