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.

[Eric in the Ozarks]

Nut-jobs in California created this problem. Let them enjoy it.

[chuckwalla]

Go to any market and buy their brand of spring water for .69 cents a gallon. Or Arrowhead spring water for about $3.00 for 2.5 gallons.
Now do the math.
You can also get racing fuel for $5.00 gallon and more.
You can also get Fiji water for $1.69 a quart.
What's your point?

[Conspiracy Guy]

My point is that even though I'd like to pay less, $3 gallon on gas is not out of line with other prices on needed or luxury items.

What is your point?

CG

[Alberta's Child]

George Soros probably has nothing to do with it. The U.S. dollar is being devalued as a deliberate result of our own economic policies (to allow U.S. labor to be more competitive with other countries) and as a side effect of our misguided belief that we can maintain an exorbitant level of government spending in this country without really "paying" for it.

[SierraWasp]

"...it's the refining (and lack of) that is causing this upswing in prices....right?"

RIGHT!!!

Especially in CA, where we're over run with politically active NIMBY's!!!

Not enough refineries due to not wanting one in one's back yard, causes artificial bottlenecks and shortages. And lest you think it's just Demonic-Rats that are politically active NIMBY's... Think again!!!

[chuckwalla]

You can stay at the Bel Air hotel for $1,000 per night so we should be paying $1,000/gallon then?
There doesn't seem to be any competition to keep prices low.
Shop at Gelson's and pay more than Food for Less.
Should Food for Less raise it's prices to Gelson's?
The point is the price opf gas is high because they can get it but it greed without competition.

[Indy Pendance]

Inflation calculator

About the CPI inflation calculator

The CPI inflation calculator uses the average Consumer Price Index for a given calendar year. This data represents changes in prices of all goods and services purchased for consumption by urban households. This index value has been calculated every year since 1913. For the current year, the latest monthly index value is used.

$0.25 in 1959 has the same buying power as $1.59 in 2004.

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[biblewonk]

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

LOL! That will probably always be since we tax it less and buy huge amounts, but as China and other countries start wanting more, it should get interesting.

[RightWhale]

Why are the other refineries raising prices the same?

They can't do price-fixing, but somehow they keep their prices in balance anyway.

[Conspiracy Guy]

I agree that greed is a factor. But $3 per gallon won't break me and I drive 3-4,000 miles per month. Comparing a hotel room to a gallon of gas is a little out there.

CG

[chuckwalla]

Excuse my spelling I'm smoking a premiun cigar that I got off the internet at half the price of a store.
Competition is what keeps prices affordable.
If all markets colluded and raised everything as high as possible and we had no competition everything would collapse.

[from occupied ga]

strictly fuel economy only

True, but the effect is the same. Mercedes got rich by totally ignoring this piece of crap legislation and rolling the charge of the tax into the price of the car

[newgeezer]

"Moderates" with long commutes in giant SUVs will be p*ssed if gas gets to $3/gal. Tommy Dasschole will not be too deeply saddened (on the inside, anyway).

Thankfully, Dubya's already written off most or all of those states.

[Dane]

But, but, but.... I was told that GW Bush and his cronies went into Iraq to steal their oil, so he and his buddies could all get rich off of cheap fuel..

Actually Iraq is up to it's pre-war levels at about 2 million barrels per day. The oil infrastructure under saddam was miserable. Although Iraq has tons of oil it will take at least 5 years for them to get to Saudi levels. Iraq's oil poroduction will go up, though.

As for the dollar Steve, oil is still sold in dollars so the devaluation has nothing to do with it. Saudi's and OPEC can cut back production to get the dollar price up.

Also as has been noted refinery capaicty in the US is lacking and add in different grades of gasoline and you have a supply problem of refined gasoline. You can blame the demos and the envirowhackos for that.

But you three may go on with on with your uninformed and knee jerk statements.

[chuckwalla]

Not out of line at all.
Gas is not water either.
You can drink tap water for what, less than 1 penny per gallon?

[biblewonk]

Can people really be convinced that Kerry has a better idea regarding fuel prices. The liberal plan is to walk a tight rope between tree huggers and the auto unions, therefore, do nothing and be really concerned in front of the camera.

[NYC Republican]

If we have to pay over $3/gal for gas, President Bush is a one termer.

Yep, it's Bush's fault. It's ALWAYS Bush's fault.

[familyofman]

"...the ANWR authorization bill can be brought up..."

And this will do what for gas prices before November - absolutely nothing!!!

[mewzilla]

This couldn't happen at a worse time.

That's the idea.

[NYC Republican]

People will pay $1 for 20 oz of water in a bottle, then whine about $2 for 64 oz of refined gasoline.

That's exactly what I was going to write, but in NYC, 20 to 24 oz of Spring Water (or even Aquafina or Desani, which is nothing but "purified" tap/municipal water) costs between $1.50 and $2.00 a bottle. People need to take this into perspective.