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.

[stevem]

Not true. Since alcohol production always uses more fossil fuel (diesel) energy than you get back from the alcohol

I can't argue that. You may be right. I still doubt it will hit $3.00 per gallon. It wii peak somewhere as we approach Memorial Day likely below $3.00 then recede, that is unless things are different today than at any time in the history of automobiles.

[chuckwalla]

When oil co. profits are up over 400% it is profit driven.
Every time the price soars their profit soars, coincidence?
I don't think so.
We're not talking about everything.
We must drive and use gas so it's not like we can stop buying and drive the price down.

[Joe Hadenuf]

Americans can stop crying about gas prices. We still pay some of the cheapest prices for gasoline in the world.

Tell that to the middle class who is being incrementally squeezed and choked off.

[from occupied ga]

more taxes and put excise taxes on automobiles based on the size of the car, the size of the engine and/or fuel economy results

Well they do that now and have been for the last 12 years, you know. It's called CAFE and the "gas guzzler" tax.

[Mr. Bird]

According to the American Automobile Association (AAA), in the last month the cost of regular unleaded fuel has fluctuated by as much as 23 cents. As listed by www.gasolineprices.com, the average price of unleaded fuel has increased ten cents from $1.48 to $1.58. The highest price was listed as $2.07 per gallon in New York City.

This was reported on February 18.......2003. We've been hearing about "shocking" gas prices forever. From a historic perspective, we're still paying nothing. Much ado...

[goodnesswins]

Someone here smarter than me (or at least with a memory for these facts) might want to cite the fact that we have not added enough refineries to our inventory in order to MAKE gasoline more available here in the U.S......it's not the oil....it's the refining (and lack of) that is causing this upswing in prices....right?

[1Old Pro]

As Congress drags it's feet on drilling in ANWR which could be used as a flowing reserve to stabilize prices. IDIOTS.

[PLOM...NOT!]

I will be in the market for a new SUV soon...what are you driving?

[Conspiracy Guy]

Good perspective. $1 for 20 oz of bottled water = OK.. $2 for 64 oz of gasoline = sky is falling.

CG

[patriot_wes]

"Back in '59 I paid 25 cents per gallon and only made $1.70 per hour. Using those figures with inflation paying $10 per gallon would not be out of line. "

there you go kids, more "new math" from the public schools.

[chuckwalla]

Paying $1.00 for a bottle of water is a choice. I sometimes pay more for exotic water.
Gas is different. It's like the pusher after you are hooked he keeps raising the price because you can't live without it.
You can also get cheaper water by buying in bulk like 24 packs.
Not so with gas. The more we buy the higher the price.

[steve50]

Not true. Since alcohol production always uses more fossil fuel (diesel) energy than you get back from the alcohol, then there will never be a price point where alcohol will cost less

Alcohol seems more corporate welfare than an energy solution. Biodeisel, however, comes into play at about $2.40 under mass production.

[Conspiracy Guy]

My point is that gas is till cheaper than water. Do you think that gas can be produced for less than water? If you do, start a refinery and sell me 25 cent gas like I bought in 1970.

CG

[wattsmag2]

Ironically, I believe this run-up in gasoline prices is going to have a positive impact in one respect: any state that is currently considering a gasoline tax hike this year is going to abandon those plans very quickly.

Many states have it built in as a percentage of price. They won't have to lift a finger to grab more revenue.

[TruthNtegrity]

$1.73 for regular around here - here being No. VA.

[perez24]

Just a question about that declining dollar factor. I thought I had heard that George Soros was trying to devalue the U.S. dollar to impact the election. Would this have something to do with it?

[chuckwalla]

Definitely out of line.
All that would do is give the oil co's huge profits.
It's politics and greed driving prices.
If we had been drilling more here like ANWR a long time ago the price would be half what it is now.
With more technology drilling becomes more efficient and costs go down.

[AreaMan]

... might want to cite the fact that we have not added enough refineries to our inventory in order to MAKE gasoline more available here in the U.S

This is correct I think the last all new refinery was built about 1973 in Illinois.

But, many of the existing refineries are not allowed to run at full capacity for a variety of reasons.
Some refineries are told by the city/county they are in to run below rated capacity because they don't want to risk a catastrophic failure and a Bhopal-like disaster.
Some refineries are denied permits to modernize or de-bottleneck their process which limits their production.

Ultimately the prices are high because they can be. The market is bearing it because there is no alternative.

[onedoug]

Ah, I've escaped from the city.

Wait a minute. I've gotta drive back there to work.

[RayChuang88]

Well they do that now and have been for the last 12 years, you know. It's called CAFE and the "gas guzzler" tax.

Actually, the Corporate Average Fuel Economy standard is based on strictly fuel economy only. In Europe and Japan, they impose excise taxes based upon the size of the vehicle and engine size; if they did that in the USA the result will be sales of cars like the Honda Civic, Toyota Corolla and Ford Focus will zoom through the roof as customers go out of their way to avoid the excise taxes.