Gas Prices, One Month Later
Crude oil prices haven’t changed greatly. Yet, when you look at this chart, US average gasoline price has risen tremendously! I highlighted last April’s crude oil prices and prices for March, April and May of this year. When crude was around $66 a barrel, our gas price was about $2.80 a gallon. This year, gas prices hit $2.80 and continued up regardless of the price per barrel. The news reports blame the continued price increase on refineries doing their periodic maintenance. I am glad that this ‘maintenance’ didn’t affect us last year as it is now!
To be fair, US oil companies haven’t built a new refinery since the late 1970s. Government regulations and environmental groups have seen to that. So what can we do? Having a nationwide boycott for gas for a day isn’t going to do squat. However, there is talk about picking one oil company, for example Exxon since they are the largest, and boycotting them completely for a few months or so. The thinking is that they will have to reduce their gas prices, hopefully to a point well below other oil companies, in order to sell their inventory. At the point, a price war could ensue.
It would be great to believe that this plan would work. It does have the potential power of millions of drivers. Perhaps we shouldn’t start with the largest since they can hold out longer. Perhaps an oil company that has a less-than-stellar environmental and worker record, say BP Oil, might be a better choice. They have been hit with rather heft fines lately. You would think that they are watching their finances a little more closer than the other guys. Just thought …
Popularity: 21% [?]
Crude oil prices haven’t changed greatly. Yet, when you look at this chart, US average gasoline price has risen tremendously! I highlighted last April’s crude oil prices and prices for March, April and May of this year. When crude was around $66 a barrel, our gas price was about $2.80 a gallon. This year, gas prices hit $2.80 and continued up regardless of the price per barrel. The news reports blame the continued price increase on refineries doing their periodic maintenance. I am glad that this ‘maintenance’ didn’t affect us last year as it is now!
To be fair, US oil companies haven’t built a new refinery since the late 1970s. Government regulations and environmental groups have seen to that. So what can we do? Having a nationwide boycott for gas for a day isn’t going to do squat. However, there is talk about picking one oil company, for example Exxon since they are the largest, and boycotting them completely for a few months or so. The thinking is that they will have to reduce their gas prices, hopefully to a point well below other oil companies, in order to sell their inventory. At the point, a price war could ensue.
It would be great to believe that this plan would work. It does have the potential power of millions of drivers. Perhaps we shouldn’t start with the largest since they can hold out longer. Perhaps an oil company that has a less-than-stellar environmental and worker record, say BP Oil, might be a better choice. They have been hit with rather heft fines lately. You would think that they are watching their finances a little more closer than the other guys. Just thought …
Popularity: 21% [?]
Written by sprezzaturon in: ,age discrimination,job,oil |9 Comments »
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I live in Malaysia and we export oil worldwide.
It took the government only days before raising the petrol prices when it went up in the world market. yet when the price goes down, nothing was done. The petrol price stays the same until now.
Ah! I guess that the price you have to pay for living in a 3rd world country.
We can only hope…..and continue to hope…..that this changes at some point.
Propolis: I think that’s the price we all pay; 1st world, 2nd world, 3rd world and beyond. I wonder how much is honest competition and how much is just greed?
Steve: You probably know the saying, “The only constant in the world is change.” Hopefully, any price change will benefit our (non-oil company) wallets soon…
I think that a reduction of consumption is happening just because of the price. I have gotten where I do not take a trip to town unless I map it out and cover every chore in order. My husband loves to go to Wal-Mart, so I had to say, “stop” every time he picks up the keys. LOL
Stopping by for C&C Monday. Have a great week.
Hello CyberCelt!
Yes, I’m hoping a BIG reduction of consumption will drop prices to under $2. But I’m not holding my breath. I don’t look good as a smurf.
As for your husband, have you thought of wiring the car keys to a little electricity? I understand that shock therapy is excellent way to ‘stop’ certain behavior.
While I want lower gas prices as much as the next guy, I’m concerned that a slow ramp up with make people get use to the price. If we slowly go to $6 per gallon over the next 5 years, I don’t think people will come up with innovative solutions like they will if it jumps to $6 per gallon. Obviously I’d prefer that the prices go back down to $0.97, but if it is going to go up, I think a dramatic increase is going to be better for everyone in the long run.
If it goes up gradually we’ll end up with more solutions like hybrid cars that are no more efficient in overall cost. A 1994 Geo Metro car is still more gas efficient than any of the hybrids and costs virtually nothing in comparison.
Hello Debt Free Dude! I agree. I heard that the best way to cook a frog alive is to turn the heat up slowly. By the time, he realizes that he’s in trouble, it’s too late. Not that I’m advocating cooking animals. I love animals … especially in a little gravy.
Anyway, things in the oil industry are pretty much back to pre-April conditions. Yet I’ve have noticed that the prices are dropping much slower than they rose and are still no where near pre-April prices. Perhaps it is like you said, the oil companies are conditioning consumers to higher prices. I don’t think we can expect help from the government since this means easy, higher tax revenues for them to waste.
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Gas prices these days are just getting higher, i think the government should focus more on alternative energy.-;: