What's 'up' with the price of gas?

DaemonSeid · #1 08-17-2010, 07:10 AM

I know and trust one of you GC'ers to give a concise answer, so here is my question.

(Keep in mind when I talk about the prices I am quoting prices mainly in my area what they were and what they are as I know prices elsewere could be a bit different.)

I am curious about why the gas prices didn't really skyrocket this summer (not that I am complaining because it's a good thing!) like they have within the past 6 to 7 years. I seem to remember that right before Katrina hit, the gas prices were already starting to climb to the $2.85 mark here in MD. Days afterwards when some of the oil wells were knocked offline, gas went over the $3.05 mark and I remember this happening even as me and one of my friends was in a gas station pumping gas with a line of cars behind us, the gas attendants were changing the prices. I also remember my parents were on their way to Atlanta and once they got there they told me that gas was somewhere around $4.54.

Then during the election year, as far as I remember there was no major disaster (correct me if I am wrong) but I DO remember that one of the biggest issues during the election was getting America to become less dependant on foreign oil, and that summer I do remember paying nearly $3.35 a gallon for gas and then right after the elections, gas DROPPED to nearly $2.35 a gallon. Places like Wawa and a few other no name places were the places to go for gas that cheap as the average price was somewhere around $2.43 to $2.47.

With the BP disaster this year, I was sort of expecting another insane climb of prices (as an excuse to what happened) but it didn't really happen. Gas runs between $2.59 to $2.75 a gallon in most places, with some of the BP stations being a bit more on the high end. The prices has stayed that way most of this summer with very little increase or decrease and it's not as big of an issue as it was back in 2008.

So, maybe I am answering my own question, but is it because of BP's own disaster, that just their prices are a little bit higher than everyone else?

What makes this year different that gas hasn't gone out of the roof price-wise like it did 2 years ago?

Thanks guys.

Drolefille · #2 08-17-2010, 08:18 AM

No production problems and lower demand. If BP's a bit higher than others, odds are it's a local thing with them. BP gas doesn't only go to BP stations and vice versa. I doubt many of the costs are getting passed down that far on the food chain.

The spill didn't really affect production, it was not ready yet, and people don't have the money to be driving all over this year. The oil producing countries didn't pull any games this year either.

That's how I understand i though.

agzg · #3 08-17-2010, 08:18 AM

Perhaps people are "over it" and finding more economically/ecologically friendly modes of transportation?

Our gas prices are really high though - the station down on the corner was $3.20 the other day and I don't remember the last time it was under $3 in the city.

DrPhil · #4 08-17-2010, 08:21 AM

I'm sure the experts on C-Span, CNN, MSNBC, and/or Fox News can answer this question for you.

I will say that nationally there are people complaining about gas prices and BP's prices aren't the highest.

Drolefille · #5 08-17-2010, 08:21 AM

Quote:

Originally Posted by agzg

Perhaps people are "over it" and finding more economically/ecologically friendly modes of transportation?

Our gas prices are really high though - the station down on the corner was $3.20 the other day and I don't remember the last time it was under $3 in the city.

That's the cost of being in Chicago though. You have more taxes and possibly require a "cleaner" burning gas. Also increased demand. It's been 2.50-2.70 around here for most of the summer. But if I went over a city to the state fair I bet it's up about 10-15 cents.

agzg · #6 08-17-2010, 08:24 AM

Quote:

Originally Posted by Drolefille

That's the cost of being in Chicago though. You have more taxes and possibly require a "cleaner" burning gas. Also increased demand. It's been 2.50-2.70 around here for most of the summer. But if I went over a city to the state fair I bet it's up about 10-15 cents.

In the city, though, you can choose not to drive and have the reasonable expectation that you will arrive at work on time.

Drolefille · #7 08-17-2010, 08:26 AM

Quote:

Originally Posted by agzg

In the city, though, you can choose not to drive and have the reasonable expectation that you will arrive at work on time.

True story. I'm actually considering biking to work here if I can get in the shape for it. It's about a 10 minutes drive at most and most of that's traffic.

DaemonSeid · #8 08-17-2010, 08:30 AM

hey people, if I may ask, when you talk about prices, let me know where you are...I am interested to find out how much it is elsewhere....in DC VA and MD as well as lower NJ...the cheapest I have seen is around $2.59 and the highest is $2.89 a gallon.

DrPhil · #9 08-17-2010, 08:33 AM

http://autos.msn.com/everyday/gasstations.aspx

PiKA2001 · #10 08-17-2010, 02:00 PM

I've paid around $4.50 a gallon before in Michigan back in '06 or '07. I just paid about $ 3.05 a gallon here in El Paso, but we have the highest gas prices in the state. El Paso's gas prices have actually been the highest in the state for the two years I've lived here, I have to assume it's because of local taxes.

Obviously, the reason gas is cheap is because Bush and Cheney aren't able to inflate the price of oil like they did for the 8 years they were in office.

Like Drolefille said it's all supply and demand, I know a lot of people are cutting back on things and unnecessary driving is one of the things I've cut down.

agzg · #11 08-17-2010, 02:51 PM

Quote:

Originally Posted by PiKA2001

Like Drolefille said it's all supply and demand, I know a lot of people are cutting back on things and unnecessary driving is one of the things I've cut down.

This is so true. I've been filling up once a month, maybe. I used to fill up every other week (my car is very good on gas, anyway).

knight_shadow · #12 08-17-2010, 03:00 PM

Quote:

Originally Posted by agzg

This is so true. I've been filling up once a month, maybe. I used to fill up every other week (my car is very good on gas, anyway).

I hate you

I wish Texas wasn't so car-dependent. I fill up at least once a week.

PeppyGPhiB · #13 08-17-2010, 03:20 PM

My fiance swears that we're going to have an energy crisis within the next couple of years. I kid you not, the other day when we were looking at new cars, he actually said he was considering buying a fuel-efficient (FlexFuel) small truck so that he could put a propane tank in the back safely. Now, I realize that sounds looney toons, and I definitely gave him the side-eye, but the thing is, HE'S ALWAYS RIGHT ABOUT THIS STUFF!

ree-Xi · #14 08-17-2010, 03:43 PM

In my state, the average is 2.85, with lowest at 2.63 and the highest is at 3.19 (with one idiot station at 3.51).

The lowest in my town is 2.83, and the lowest in the town next to me (where my sister lives and where a lot of my shopping is done) is 2.69 (if you pay cash).

I don't do much driving, so it's not a huge expenditure for my vehicle, but my husband drives 40 miles each way to work, and has to fill up twice a week.

Of course, it's better than when we first moved back here and he still had to commute to his old job - 120 miles each way, plus $28 a day for parking.

ETA: I use Gasbuddy.com to check gas prices.
http://www.gasbuddy.com/gb_gastemperaturemap.aspx

PiKA2001 · #15 08-17-2010, 04:46 PM

Quote:

Originally Posted by PeppyGPhiB

My fiance swears that we're going to have an energy crisis within the next couple of years. I kid you not, the other day when we were looking at new cars, he actually said he was considering buying a fuel-efficient (FlexFuel) small truck so that he could put a propane tank in the back safely. Now, I realize that sounds looney toons, and I definitely gave him the side-eye, but the thing is, HE'S ALWAYS RIGHT ABOUT THIS STUFF!

That doesn't sound crazy at all to me, in fact I think he's a smart man.... but I also have about a months worth of water and dried food/MRE's stored away in case of an emergency myself.