gasoline prices

[Coramoor]

I remember reading how a large part of the increase in the cost of gas is due to the weak dollar. A barrel of oil is still worth the same amount when set against gold as it was a few years ago.

The devalue of the dollar, due to stupid policies like bailing out homeowners that made irresponsible decisions and bought houses they couldn't afford (for example), is causing this increase.

It had some other examples...but I can't be bothered to try and find the article. Once again I'll just blame the democrats and their unsound fiscal policies driving the dollar into the ground.

[nate2512]

Originally Posted by Coramoor

I remember reading how a large part of the increase in the cost of gas is due to the weak dollar. A barrel of oil is still worth the same amount when set against gold as it was a few years ago.

The devalue of the dollar, due to stupid policies like bailing out homeowners that made irresponsible decisions and bought houses they couldn't afford (for example), is causing this increase.

It had some other examples...but I can't be bothered to try and find the article. Once again I'll just blame the democrats and their unsound fiscal policies driving the dollar into the ground.

That is correct, when the dollar weakens in global markets the price of oil goes up because oil is traded in strictly American dollars. Thats not the only reason oil prices are so high though. OPEC says they are producing enough oil to meet global demand, and they won't increase it because they are basically punished America. A while back, when oil was about $20/barrel, OPEC and the US were working on a deal to increase middle eastern oil production which would have meant billions of more dollars for OPEC, well before the deal was done, far eastern countries struck oil and the US went there to get the rest of the oil needs and oil plummeted to $10/barrel. So OPEC wasn't happy about that and now they're hammering us for it.

[jon1856]

Just read this story in AutoWeek. Interesting observation on Federal "Gas Tax":
Kevin A. Wilson

Pounding the pavement
I was going to toss in my two cents on the gasoline-tax summer-holiday idea advocated by two of the presidential candidates, but you know what? They're U.S. senators, paid to lead, legislate and cast votes. So if the idea was more than pandering for votes, we'd see a bill in Congress with their names on it. It takes longer to pass and implement such legislation than to fill the starting grid at Indy.

Forget a Memorial Day-to-Labor Day tax cut. Ask instead, why is there a federal gasoline tax? It's not just a tool for managing the economy or reducing emissions or oil consumption. The tax, established in 1956, goes into the federal Highway Trust Fund so we have money to build and maintain roads (a tiny portion goes to mass transit).......
http://www.autoweek.com/apps/pbcs.dl...8/newsletter01

[kstar]

This is what is bugging me more than anything:

When gas prices were rising when Clinton was in office, he released some of the federal oil reserves, lowering the price. It actually ended up making the gov. some money, as he then turned around and bought them back at the now lower price. Why hasn't Bush done this? Oh yeah, he likes his oil buddies having record profits.

[nate2512]

Originally Posted by kstar

This is what is bugging me more than anything:

When gas prices were rising when Clinton was in office, he released some of the federal oil reserves, lowering the price. It actually ended up making the gov. some money, as he then turned around and bought them back at the now lower price. Why hasn't Bush done this? Oh yeah, he likes his oil buddies having record profits.

It's a quick fix, it'd work for a couple of weeks, but then they would cut it off, or run out, and you're right back where you started. There are two ways to fix the problem, the dollar must strengthen in the global market, or OPEC has to agree to produce more oil per day.

ETA: We have stopped putting oil in the reserve, but you see it hasn't helped at all.

[jon1856]

Found this in AAA's Car and Travel Magazine today-Could be of interest for those who are currently filling up with Hi-Test:
Why Pay for Premium Gas?
Do you spend $200 every year on octane that you don’t need?
To rein in budget-busting gas prices, maybe you need look no further than the button you press to pick a grade at the pump. If you usually fill up with highpriced, high-octane gas, you could save $6 or more per fill-up by switching to good old 87-octane regular. You’ll notice a difference in your credit card statement, but probably not in the way your car behaves.
According to AAA’s most recent statewide Fuel Gauge Report, premium gas costs 31 cents more per gallon than regular; midgrade, about 23 cents more. Despite their higher costs in a time of rising overall gas prices, premium and midgrade still account for roughly 17 percent of the market, according to the U.S. Energy Information Agency. Some people opt for higher-octane gas because the owner’s manual tells them to use it in their cars. (Actually, carmakers recommend premium gas for only about 5 percent of all models.) Other folks buy premium because they believe it gives them better mileage or more power. Still, others splurge on an occasional tankful as a treat for their car, much the way you might indulge your dog with a juicy morsel of steak every now and then. Unfortunately, all these reasons will waste your money....
http://carandtravelmagazine.com/Cara...remium_Gas.asp

[Benzgirl]

Originally Posted by nate2512

It's a quick fix, it'd work for a couple of weeks, but then they would cut it off, or run out, and you're right back where you started. There are two ways to fix the problem, the dollar must strengthen in the global market, or OPEC has to agree to produce more oil per day.

ETA: We have stopped putting oil in the reserve, but you see it hasn't helped at all.

It will only impact 70,000 barrels per day, which Bush said is too small to make an impact. Not that he knows what he is talking about