Record Gas Prices: Some Analysts Predict $3 A Gallon By Year's End

LA Daily News ^ | Mar 1, 2004 | Brent Hopkins

[hardhead]

Los Angeles gasoline prices hit a record $2.178 a gallon for regular on Monday -- up more than 50 cents since Jan. 1 -- and some analysts openly talked about it hitting the once-unthinkable mark of $3 a gallon, possibly by late this year.

The Automobile Club of Southern California reported that the price of gas soared 40 cents in the past month, putting it more than 22 cents above price a year ago and 1.1 cents higher than the previous high of $2.167 on March 21, 2003.

[CMAC51]

When oil co. profits are up over 400% it is profit driven.

Another great sounding meaningless statement. Great emotional impact without any real economic meaning without providing a frame of reference.

If they were making $0.01 for every dollar invested and jumped it up to $0.04 per dollar that would be a soaring 400% increase. Unfortunately, I can't see any reason I would invest in a company that only returns $0.04 on the dollar. Now, tell me that oil companies are making 15% or 20% return for each dollar invested and I might start thinking they are making excess profit (and invest a few of my dollars in them as well)

So Mr. "Screaming so Loudly" what % are oil companies returning for each dollar invested?

[mewzilla]

People need to get over the idea that they're entitled to cheap gas.

[Conspiracy Guy]

Well I don't buy bottled water but most of the people complaining about gas prices do. When the greed exceeds the market's willingness to pay, the price of gas will come down or stabilize.

I started driving in 1970 at 25 cents a gallon. With price wars, 15 cents was not uncommon. If prices go to $3 per gallon it will be no difference in a few years than $1.50 is now when compared to 25 cents.

Of my 3-4,000 miles per month, 75% is business. Gas is the least of my expenses even though my pickup gets only 18 mpg. Gas in the US is still cheaper than ANYWHERE else.

CG

[chuckwalla]

Better late than never.
Or maybe we should be held hostage forever because a little planning won't work right now.
It will have some effect in that the ME oil gougers will be put on notice that their days are numbered.
It will also keep future price hikes from skyrocketing.
We should also be building more refineries and severely limiting the clout the envirowackos have over our economy.

[familyofman]

"..I'll bet you thought we would find WMD also..."

I hear they've found a ton of "oil-producing related programs" in Iraq. SH could have begun production within 45 minutes.

[steve50]

As for the dollar Steve, oil is still sold in dollars so the devaluation has nothing to do with it.

So a dollar that's worth 40% less has nothing to do with the producers wanting more of them for the same amount of a product. I hope you never attempt to run a business, at least not with anybodies money other than your own.

[NYC Republican]

People need to get over the idea that they're entitled to cheap gas.

Exactly! People are complaining way too much about it. Do they want the price of oil to be subsidized by the government? Are you kidding?

[Conspiracy Guy]

They won't because they will say that bottled water is a choice. To that I say so is driving. I don't have to live 30 miles from my office, but I chose to, it's a southern thing.

CG

[mewzilla]

Besides, if the price of gas is too high, why are the sales of gas guzzlers still increasing?

[chuckwalla]

So if I had an oil co and read waht you said I would raise my price to you because you think it is low and laugh all the way to the bank.

[Joe Hadenuf]

"THE SKY IS FALLING", "THE SKY IS FALLING!!"

No, the sky is fine. The money falling out of our pockets is the problem.

[Uncle Hal]

Bush had better do something to hold down gas prices. If gas is $3 a gallon in November Bush is toast. Simple as that.

[Lunatic Fringe]

I dont see gas co. profits as a "problem."

The reason for "high" prices is because you pay it.

Personally, I drive a Toyota Corolla which gets about 35 mi/gallon. I spend $15 a tank filling up, whereas last year I paid $12 a tank. So it doesn't bother me much when the price of gas goes up a nickel, or two, or a half dozen.

Stop buying gas and the price will drop.

[Maigrey]

$1.55 here in SW TN

[Centurion2000]

Los Angeles gasoline prices hit a record $2.178 a gallon for regular on Monday -- up more than 50 cents since Jan. 1 -- and some analysts openly talked about it hitting the once-unthinkable mark of $3 a gallon, possibly by late this year.

Tap ANWR ... it's ready

[chuckwalla]

Hey you solved it.
We'll all stop driving.

[Lunatic Fringe]

Bush had better do something to hold down gas prices. If gas is $3 a gallon in November Bush is toast. Simple as that.

LOL. Bush has GOT to do something about the rising cost of BEEF! If a t-bone is $5 a lb in November, he will lose! Simple as that!

[Finalapproach29er]

Exactly. This is what Bush better fix soon. This angers people. Could slow recovery, also.

***We should build another reserve tank so we can manipulate the OPEC when prices get to high. Give them a taste of there own medicine.

[varon]

I hear they've found a ton of "oil-producing related programs" in Iraq. SH could have begun production within 45 minutes.

ROFLMAO

[Joe Hadenuf]

Surprise! Your tax cut gets spent on high heating oil and gasoline prices!

Exactly. There will be no damn tax cuts...