What's Driving Up Gas Prices This Time

THE WALL STREET JOURNAL ^ | February 22, 2004 | ANDREW BLACKMAN and BHUSHAN BAHREE

[sarcasm]

A recent surge in the cost of gasoline contributed to the jump in consumer prices reported Friday. And the rules of the gasoline industry are in flux, which could mean still higher prices at the pump this year.

While the traditional rules of supply and demand still largely drive gasoline prices, new factors such as environmental rules and a weaker dollar now have been thrown into the mix.

[Truth29]

Sky high prices can also hurt Dubya's chances for reelection. The Feds will get part of the blame.

[Phyto Chems]

We need more refineries, that will fix it all, along with more Natural gas pipe lines to relieve the shortage there also.

[ETERNAL WARMING]

The low dollar.

[tm22721]

As long as they refuse to raise interest rates (before the election) oil will continue to go through the roof.

BUMP

[Prodigal Son]

LOL, I would hardly call $1.70 per gallon sky-high. Sounds dead cheap to me. We pay over $5.00 per gallon for it here. Now, that's sky-high. It's literally as high as the gov't can set the tax without the populace revolting (the people have revolted in the past over it). I understand Americans think it's a high price, but in perspective, it's really not.

[mewzilla]

We've been to Britain a couple of times. When we come back and tell people what you folks pay for gas over there, they still whine. And drive their gas guzzlers. Many Americans seem to think that they have a right to cheap gas.

[skip2myloo]

GREED, lack of real competition and no regulatory oversight of an almost monopolistic industry.

[SeeRushToldU_So]

Many Americans seem to think that they have a right to cheap gas.

You mean we don't? I am paying only$1.46.

[Truth29]

"Sky high" is relative to the country you are in. It will be over $2 USD this summer, maybe significantly higher. That's enough to have political consequences. If you are in Venezuela, gas prices are .30 cents USD. In Europe ...

[SauronOfMordor]

Besides more refineries, we need to cut down on different blends. Go with just two: urban and rural. Or just cut out the damn ethanol entirely, even though Archer Danials Midland screams

[steve50]

The low dollar.

That would be my guess. How unreasonible to raise the ppb after the dollar drops 40%.

[SW6906]

Drill ANWR NOW!!!!

[palmer]

We need more refineries, that will fix it all,

Why would anyone invest in a refinery when the world crude oil output is about to peak?

[palmer]

GREED, lack of real competition and no regulatory oversight of an almost monopolistic industry.

This is 2004, not 1904.

[norton]

2.29 a gallon yesterday in LA area.

For one thing, I am really starting to question what the actual cost of credit cards might be. We had a new station open for cash only, at more than ten percent lower price. As soon as they got signed up to take cards at the pump their price jumped up to local norms: I thought it was three percent and not nearly as much as this suggests.

I also wonder what it is costing to clean up the MTBF disaster now that California switched (again)...and where the money comes from/

[Prodigal Son]

"Sky high" is relative to the country you are in.

Only to a certain extent. The Average income in the US is higher than in Britain and many other costs are lower. So, not only are you making more you pay much less for your petrol.

Petrol costs as a percentage of your income are considerably lower in America. That part is not relative.

[mewzilla]

Well, we drive small and fuel-efficient cars. We're about as insulated as we can get from fuel hikes. We've done what we can. Most of the price is taxes, anyway. I don't know why folks don't kvetch about that.

[mewzilla]

What are light truck sales doing there? Last time we were there, which was a few years ago, we still didn't see a lot of the bigger vehicles on the road. Is that changing?

[SAJ]

UK and US **petrol** costs are within 1.5 cents of each other as I write this, basis Rotterdam and allowing for estimated shipping differentials. The difference in the price at the pump is almost entirely due to the confiscatory tax on petrol that the UK levy.

Nor is this any sort of new development; it's been true for at least 3 decades.