Sometimes gas prices seem to follow crude oil and sometimes they don’t. Right now crude oil is at a 20 month low at $52/bbl dropping $10 in just a few days despite OPEC’s announcement that it will be cutting production. But gas prices have not yet followed suit. Is a drop imminent? Are we going to see the blue sky $2/gallon again ?
The average national gas price is $2.236/gallon as per Gasbuddy.com. I am in California. The average here is around $2.41/gallon.
Great to see so many people already at below $2/gallon gas. However, do you think it will stay? For how long?
What you have to remember is that gas prices are an amalgam of many different factors. You have to remember the both India and China are beginning to industrialize. China alone will be able to reach our gas usage rate in a couple years. This obviously drives up the price. Supply and demand aren’t the only factors. For example, did you know that congress taxes the oil companies so much that they make more money from oil the the actual companies do? Big oil is villanized in the media but more than half of what you pay for are for taxes and additives to the fuel you use. People need to get it into their thick skulls that corporations don’t pay taxes, consumers do. So if you want to blame someone don’t blame Bush, blame congress. People also need to learn that the legislative branch and the executive branch have different powers and responsibilities. Sorry about that last part, I’m just still a little angry from the idiots that votes democrat in this last election.
FYI it won’t ever go below $2.00 again unless a couple of things happen. The only realistic one being that a large number of oil veins are discovered and used. Not like the ones being ignored in Alaska. The unrealistic one is that Congress decreases the taxes on the oil companies. That will never happen because people don’t know the few pennies that oil companies make off of every gallon. China and India are only going to consume more and more, so you should actually expect oil prices to rise.
March 1st, 2010 at 9:40 am
i paid $1.96 a gallon in Mrytle Beach, SC on saturday
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March 1st, 2010 at 10:02 am
i’m not sure what part of the country you’re from, but here in south texas we are already seeing the gas prices drop to about $1.98 – $2.10
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March 1st, 2010 at 10:18 am
it’s &1.95 here in kansas city
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March 1st, 2010 at 10:29 am
It’s $1.87 at the gas station down the street from me. I live in Minneapolis.
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March 1st, 2010 at 11:04 am
Guess it depends on where you live. In Minnesota, gas prices have already dropped past the $2-per-gallon area. I paid $1.97 yesterday to fill up.
Seems to me that oil and gas prices do kind of correspond but it takes time for the gasoline prices to catch up to the oil prices, as that price-per-barrel is what refineries pay for certain types of oil – "sweet", "sour", light, heavy – and where it’s refined and what it is refined into – natural gas, gasoline, etc.
See this link for more info.
http://tonto.eia.doe.gov/ask/crude_types1.html
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March 1st, 2010 at 11:31 am
It’s 2.57 here in Los Angeles.
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March 1st, 2010 at 12:21 pm
I live in St. Louis Missouri and around here we are paying 1.96 to 1.98 a gallon.
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March 1st, 2010 at 12:41 pm
What you have to remember is that gas prices are an amalgam of many different factors. You have to remember the both India and China are beginning to industrialize. China alone will be able to reach our gas usage rate in a couple years. This obviously drives up the price. Supply and demand aren’t the only factors. For example, did you know that congress taxes the oil companies so much that they make more money from oil the the actual companies do? Big oil is villanized in the media but more than half of what you pay for are for taxes and additives to the fuel you use. People need to get it into their thick skulls that corporations don’t pay taxes, consumers do. So if you want to blame someone don’t blame Bush, blame congress. People also need to learn that the legislative branch and the executive branch have different powers and responsibilities. Sorry about that last part, I’m just still a little angry from the idiots that votes democrat in this last election.
FYI it won’t ever go below $2.00 again unless a couple of things happen. The only realistic one being that a large number of oil veins are discovered and used. Not like the ones being ignored in Alaska. The unrealistic one is that Congress decreases the taxes on the oil companies. That will never happen because people don’t know the few pennies that oil companies make off of every gallon. China and India are only going to consume more and more, so you should actually expect oil prices to rise.
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March 1st, 2010 at 1:05 pm
I hope so, I would like to see prices fall to under $1.00 again.
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March 1st, 2010 at 1:53 pm
I paid $1.89 near KC on yesterday
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March 1st, 2010 at 2:33 pm
its $1.99 in louisville ky
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