Gas prices hit high

CNN ^ | August 14, 2005

[BulletBobCo]

CNN) -- Gas prices surged 20 cents over the past three weeks to an all-time high of $2.50 per gallon of self-serve regular, according to a national survey.

The price surge "does smash the all-time record high for the third time this year," Trilby Lundberg, publisher of the Lundberg Survey, said Sunday.

"Crude oil has caused this jump at the pump," she said of the survey, taken August 12 at about 7,000 gas stations in every state.

"And even at the current record-breaking pump prices, gasoline demand, while not galloping, is still growing."

Oil prices rose to record highs of $67 a barrel Friday, amid concerns that demand was straining the world's capacity to pump and refine crude oil. (Full story)

Lundberg noted that if the crude oil supply remains undisrupted, "the gasoline price surge itself will probably be ending soon, if it has not already."

"Our demand for gasoline is always highest for June, July and August," she said of the summer months, when families typically take vacations. She said gasoline demand is expected to taper off after August.

(SNIP)

Though a record in absolute terms, the price is still well shy of a record, if adjusted for inflation. The peak price would have been set during the Iranian revolution in March 1981, when a gallon of gas cost about $3 in today's dollars, Lundberg said.

[fish hawk]

Save this headline. You will be able to use it a lot in the coming weeks.

[thackney]

My proposal would be to roll in, over a period of 8 years, a $2 federal surcharge per gallon of gas (hold on, before you panic). That gives people time to adjust the type of vehicles they own. That money would then go to a federal fund to be redistributed to income tax payers on their 1040 returns. For every person of voting age in a household on a tax return, you can claim a proportional credit on your return. Hypothetically, if the average driver goes 12,000 miles per year in a 25 mpg car, that would be $960 in surcharges. If you have 250 million drivers, that's $120 billion nationwide in surcharges, and every driver would be eligible to claim a $960 tax CREDIT on their return.

Existing taxes per gallon already charge more to those who use more gasoline. Why make it complicated?

[RightWhale]

My engineering buds say new battery packs will be needed at the 50,000 to 75,000 mile range

When they started putting catalytic converters in the exhaust pipes they said they would last 50,000 miles. The one in my Chevy is still working at 120,000 miles. That can gets hot, though; you can feel the heat on the floorboards if you sit in the passenger seat.

[sandbar]

>>>It's bad when people start thinking it is the 70s all over again. Many people, right or wrong, already believe Bush is somehow in league with the Saudis and big oil.>>>

That's exactly what is going around the water cooler at the office. You know the evil Bush and Cheney, oil tycoons, making their buddies rich and not caring about it. Bush better get out there and act like he gives a damn or the Republicans will be paying the price in 2006.

We mock Jimmy Carter for the oil crisis in the 70's, will Bush be mocked like this?

[sandbar]

>>>At no point should I have to support your choice of place to live. I have moved due to where I worked before, I didn't ask you to help pay my expenses, why should I pay yours?>>>

What are you retarded? I never asked you to support where I live, but if you think that the government who has had their hand in the oil biz all these years somehow NOW need to back off, then you are insane. I'm not asking you or anyone else for a damn penny, so don't go acting like I am. I'm asking for the GOVERNMENT that I SUPPORT with MY TAXES do something to ease the burden of a burgeoning crisis that they can do something about.

[FFIGHTER]

The MSM does not address the real issue, not the scarcity of oil, but the limited refining capacity. There is a shortage of gasoline, not oil that is leading to the large increases at the pump. We are losing refining capacity every year, not increasing capacity, as the not-in-my-backyard politicians and increased regulatory pressures, have all but dried up any hope for increasing refinery capacity. Add to this the numerous cocktail list of gasoline blends required around the country to comply with regulatory requirements. Several blends require extensive changeover, that shut down operations for considerable time to make the necessary change to prepare the gasolines that are utilized in this country. Even if every oil producing country maximized production, it would not effect the gasoline prices significantly. Only major, and regrettably long-term changes are necessary to address the problem.

[sandbar]

>>>Get rid of the EPA and regulations restricting businesses and things will change dramatically>>>

What does the EPA and business restrictions/refineries have to do with the price of crude oil?

[sandbar]

>>>Free market and less gov't is the usual call from Conservatives.>>>

Yeah, well I don't believe it is the Conservatives veiwpoint that the government step in, screw it all up and then stand back and go "Nope, not my problem".

[sandbar]

>>>Now I just love bicycle commuting to work 3.5 miles each day.>>>

Oh yeah, good ole Biblewonk. He/She wants everyone to converge on the metropolis' of the country and noone have farms, children (cause don't ya know you can't take kids to school or doctor appointments on a bike), or take elderly parents to the doctor, etc...

Yeah, keep spouting that brilliant solution on every gas thread Biblewonk. You make TONS of sense.

[bullseye1911]

When they started putting catalytic converters in the exhaust pipes they said they would last 50,000 miles. The one in my Chevy is still working at 120,000 miles. That can gets hot, though; you can feel the heat on the floorboards if you sit in the passenger seat

Common occurance. Have you ever had a "sniffer" on your exhaust for a license renewal? Can't pass the pollution test, don't get the renewal. Also, have you noticed any difference in fuel milage? Often, the convertor gets "saturated" ie; plugged and exhaust just passes through. With Hybrids, however, if the packs can't hold a charge, or it runs out too soon, your left with a gasser if it will run at all. Regards.

[ZULU]

The continuing spiral in gasoline and heating oil prices, rightly or wrongly, will result in negative fall-out for the Republicans.

I don't know what, if anything, Bush can do about this, but the popular perception is he's doing nothing - which is bad news and may hurt us in 2006.

[RightWhale]

I don't know that the gov't screwed it all up. It might be that the problem cannot be controlled. One thing for sure, any move to correct the problem could just make things worse. Wouldn't be the first time.

[sandbar]

>>>Oh, I see. So the government can step in and create situations that allow the price of gas to be so high, but to do something about it would be 'socialism'. Take your pick, either in or out.>>>

Government has been involved in the oil industry for years!!

[RightWhale]

Yes, that is inspected every two years, the only inspection done in Alaska on private vehicles is emissions. The car just passed emissions with flying colors. I don't know what a new catalytic converter would cost; 19 years ago it was $100. It contains a platinum mesh screen, something like the hydrogen scavenger filter on the natural gas line coming to a building.

[palmer]

Does China's de-pegging the yuan have anything at all to do with this?

They didn't really depeg, just repegged to a currency basket. But the formula is secret and they moved a whopping 2%. Big Deal.

But to answer specifically, in the short run a depeg will lower the dollar and raise oil prices per dollar. But in the medium to long run, depegging will slow China's growth and energy use (or crash it altogether) and we would see a large drop in oil prices. Supply and demand are tightly balanced right now and it won't take much of a demand decrease to drop the price.

[newgeezer]

Do what about it? So now noone can live in rural areas and work too. Yeah, you got a brilliant solution there buddy.

In the pursuit of happiness, we make choices. When my past choices become bad choices, I don't look to government for relief.

[bullseye1911]

Point well taken, however, I'm not convinced hybrids are any thing other than a flash in the pan. Until long term costs are determined in maintainance and depreciation, etc. it remains to be seen if they are overall more economical. It certainly is one more nail in the coffin of the small, independant service station.

[palmer]

I live 75 miles from work. My $10 / day in gas is fairly trivial in the big picture. As for your suggestions for govt intervention, see my last post #95. If China's growth is cut back (and we accept higher prices for their crap) that will cause much lower oil prices as their use reverses. Of course there are downsides to that as well (instability in China, etc)

[mysterio]

So you are advocating that everyone move to the cities? Let's use that as a campaign slogan.

Vote GOP 2008! Tax breaks for oil companies, and you can move to the city and ride a bike! Let them eat cake!

Bookmark all of these threads to read in November of 2006 and 2008. They'll be a hoot.

[NYorkerInHouston]

I wish it were that simple. But it isn't. Refining capacity is increasing and has been since the mid 90's though its not yet at the level it was prior to deregulation in the early 80's.