Posted on 11/12/2014 10:41:16 PM PST by Olog-hai
Those low gas prices on station signs aren’t going away soon, the government says.
In a dramatic shift from previous forecasts, the Energy Department predicted Wednesday that the average price of gasoline in the U.S. will be below $2.94 a gallon in 2015. That a 44-cent drop from an outlook issued just a month ago. If the sharply lower estimate holds true, U.S. consumers will save $61 billion on gas compared with this year.
Rising oil production, particularly in the U.S., and weak spots in the global economy have led to a sharp reduction in oil prices over the past four months. Not seeing much of a change ahead, the government cut its forecast for global oil prices next year by $18 a barrel to $83.
As a result, U.S. drivers will pay on average 45 cents less for a gallon of gas next year compared to this year. Based on expected gasoline consumption, that’s a savings of $60.9 billion. …
(Excerpt) Read more at hosted.ap.org ...
A lot of the guys working in North Dakota were unemployed in Alaska not so long ago.
The cheap oil is pretty much pumped out, world wide.
There is plenty left in the ground, but the fields are smaller, and extracting it is more expensive.
Some guy here at FR told me a few weeks ago that even the Saudis are starting to do horizontal fracking.
huge gas tax increase
That is why I hope the technology for extracting it keeps getting better.
Still not a comfortable price for those on fixed incomes who are not getting a decent interest rate on their savings accounts and CD’s like before. Crony capitalism is robbing me of my formerly decent lifestyle. Collusion between special interests has led us to this point and they want me to applaud it.
PA is instituting a 29 cent per gallon gas tax increase in the near future. Instituted by a Republican governor who just got voted out of a second term by a Democratic challenger. When they see decreasing prices, they think it’s a good time to sneak in a tax.
Which is why I have to go back to work in commissioned sales even though I can barely walk.
One would think that if back when they were very high (like, ever since O was immaculated) and the government, liberals and media harped about how it isn’t his fault - he can’t control it, then they really haven’t a clue or credit for its lowering, either.
Well, then...it’s obviously time to raise gas taxes $1.00 per gallon. The government just doesn’t have enough money and needs it more than you.
I paid 88 cents a gallon in 1998.
Wake me when it gets back to that.
“Do you have Aldi’s there?”
Got one around the corner, but they don’t sell Land O’ Lakes Sweet Cream Unsalted butter. Anything else isn’t worth eating!
so the real price of a gallon of gas is around $2.00
Constitutional amendment : there should only be 1 kind of tax so that we all know what we pay . no progressive but a flat tax of 10% sales tax. no deductions and all governments at all levels divide that 10%.1 tax to cover all government expenses . no property tax. abolish the IRS.
Now every state government can trot out their goal to raise gasoline taxes.
Still too high.
It hit $4 under Bush but fell back down to 1.89 at the end of his 2nd term.
Monthly U.S. average regular gasoline retail prices fell from $3.69/gal in June to $3.17/gal in October. EIA expects that U.S. regular gasoline retail prices will continue to fall to an average of $2.80/gal in December 2014. The U.S. annual average regular gasoline retail price, which averaged $3.51/gal in 2013, is projected to average $3.39/gal in 2014 and $2.94/gal in 2015, $0.06/gal and $0.44/gal lower than in last month's STEO, respectively. Diesel fuel prices, which averaged $3.92/gal in 2013, are projected to fall to an average of $3.82/gal in 2014 and $3.38/gal in 2015, $0.04 and $0.41 lower than in last month's STEO, respectively.
The February 2015 New York Harbor reformulated blendstock for oxygenate blending (RBOB) futures contract averaged $2.12/gal for the five trading days ending November 6, 2014. Based on the market value of futures and options contracts for this key petroleum component of gasoline, there is a 15% probability that the RBOB futures contract price at expiration will fall below $1.85/gal, consistent with a monthly average regular-grade gasoline retail price less than $2.50/gal in February 2015. There is also a 19% probability that the RBOB futures contract price at expiration may exceed $2.35/gal, consistent with a retail price of $3.00/gal or higher. Daily and weekly national average prices can differ significantly from monthly and seasonal averages, and there are also significant differences across regions, with monthly average prices in some areas falling above or below the national average price by $0.30/gal or more.
Lower projected crude oil prices also contribute to a reduction in the forecast residential heating oil price and average household heating oil expenditures this winter. The average household that uses heating oil as its primary space heating fuel is expected to pay an average of $3.27/gal this winter, $0.36/gal lower than projected in last month's STEO. The average household is now expected to spend $1,779 for heating oil this winter, $213 lower than in last month's STEO.
The federal gasoline tax is 18.4 cpg.
Most of the states have their own taxes higher than that.
Will the IRS designate the savings as income subject to taxation?
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