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08-31-2005, 02:44 PM #1Professional Member
- Join Date
- Jul 2005
From CNN....LUBE is extra.
Experts: $4 a gallon gas coming soon
Pricing analysts say consumers can expect even higher prices at the pump.
August 31, 2005: 12:46 PM EDT
By Grace Wong, CNN/Money staff writer
With gas prices climbing, CNN/Money's Allen Wastler shows you how to stretch your dollars at the pump. (August 31)
Video More video
Energy Secretary Samuel Bodman says the U.S. will release oil from the nation's Strategic Petroleum Reserve to help refiners hurt by Katrina. (August 31)
NEW YORK (CNN/Money) - Consumers can expect retail gas prices to rise to $4 a gallon soon but whether they stay there depends on the long-term damage to oil facilities from Hurricane Katrina, oil and gas analysts said Wednesday.
"There's no question gas will hit $4 a gallon," Ben Brockwell, director of pricing at the Oil Price Information Service, said. "The question is how high will it go and how long will it last?"
OPIS tracks wholesale and retail oil prices and provides pricing information for AAA's daily reports on fuel prices.
Brockwell said with gasoline prices now exceeding $3 a gallon before even reaching the wholesale level, it "doesn't take a genius" to expect retail prices to hit $4 a gallon soon.
"Consumers haven't seen the worst of it yet," Brockwell said.
He expects consumers in the Southeast and Northeast to be pinched first, following the impact of Hurricane Katrina on the Gulf Coast region.
Katrina pressures gas supplies
Katrina forced operators to close more than a tenth of the country's refining capacity and a quarter of its oil production, which sent gasoline prices surging.
Two major pipelines that supply gasoline to key terminals and distribution centers along the Eastern U.S. were shut down due to power outages caused by the storm. (Video of Energy Secretary Samuel Bodman discussing U.S. plans to tap strategic oil reserve to help refiners -- 4:16. Click here to watch).
Colonial Pipeline said it hopes to be back in partial operation soon, while the date of Plantation Pipeline's restart is not clear. Each day the pipelines are closed, supplies get backlogged and distribution centers must rely on reserves.
"With this kind of hiccup in refinery capacity, in stretched markets like California, you could see over $4 a gallon in gas," Evan Smith, an analyst at U.S. Global Investors, told CNN/Money.
While it's still too early to fully assess the damage caused by Katrina, efforts to build up inventories of crude oil, natural gas and other products like gasoline will be set back by the storm, according to Nariman Behravesh, chief economist at Global Insight.
In a research note, Behravesh laid out a worst-case scenario that puts average prices for regular unleaded gasoline at about $3.50 a gallon for the next four to six months.
"The impact on consumer spending in such a scenario would be very dramatic, cutting the growth rate by as much as 3 percent and pushing real GDP growth in the fourth quarter closer to zero," he wrote.
In a best-case scenario, he forecast retail pump prices to peak at $3 a gallon for a couple of months, but then fall back to around $2.50 by year-end.
The nationwide average price for a gallon of regular unleaded hit a fresh high of $2.619 Wednesday, according to AAA, the largest U.S. motorist organization, formerly known as the American Automobile Association.
Average gasoline prices have gained 40 percent in the last year.
Prices for crude oil are also up sharply and are currently hovering near record highs just under $70 a barrel.73% of Americans say that illegal immigration is a problem. The other 27% say, "No habla inglis!"
08-31-2005, 05:03 PM #2Regular Guest
- Join Date
- Aug 2005
I left home this morning and filled up at 2.59 gallon regular unleaded. When I left the job site today it was 3.09 regular unleaded and there was a line 10-15 cars deep waiting to fill up. People are in panic mode because they say Atlanta will be out of gas by this weekend. I believe this it's a rumor but with this mindset they're going to make it a reality. Some gas stations have started rationing how much gas you can get.
But, I'd rather be out of gas than have to suffer like the people in LA, AL, MS.
08-31-2005, 05:14 PM #3
The current cost of gas is no surprise. The oil companies planted the seed a few years ago when they began shutting down some of their "less profitable" refineries in order to drive up the price by changing the supply vs demand ratio. They knew exactly which politicians palms to grease to have them look the other way while they were doing this.
So today, not only have their political contributions earned them billions in windfall profits, the politicians are going to allow them to drill in new areas by pretending to agree with the oil company's ruse that there just isn't enough oil available to be pumped.
As long as the oil companies are allowed to grease the palms of politicians, this will continue. It won't stop until voters realize who the guilty parties are.
Although I realized this long ago, for some reason, this was a well kept secret until recently. Only in the past few months has it begun to make the news.
08-31-2005, 05:56 PM #4
Can you say
fudge here? How you owners compensating? Any of you guys owners during the last recession? Thats where we goin.
[Edited by lusker on 08-31-2005 at 07:17 PM]My doctor gave me six months to live, but when I couldn't pay the bill he gave me six months more.
08-31-2005, 05:59 PM #5Professional Member
- Join Date
- Sep 2002
It just went up to 6 dollars a gallon in atlanta.
Supply and demand how come its always ok for the big oil company to do,but when we little guys do it,its called price gouging.
[Edited by simpleman on 08-31-2005 at 06:02 PM]
08-31-2005, 06:00 PM #6
Re: Can you sayOriginally posted by spotts
How you owners compensating? Any of you guys owners during the last recession? Thats where we goin.
I'm going buy a Rottweiler and start converting the truck to run on dog doodoo.
[Edited by lusker on 08-31-2005 at 07:17 PM]
08-31-2005, 06:08 PM #7Regular Guest
- Join Date
- Nov 2004
- Atlanta, Ga. burbs
600 per gallon in Atlanta, Ga.
This is BS.
08-31-2005, 06:25 PM #8Professional Member
- Join Date
- Sep 2002
Re: 600 per gallon in Atlanta, Ga.Originally posted by west_seth
This is BS.
But then you know how second hand news can be.
08-31-2005, 06:54 PM #9Professional Member
- Join Date
- Jul 2005
cut/pasted this from an Alanta tv news site...appearently some Gouging by a few stations ...about 3 paragraphs down...chargeign $5 or $6 a gallon...pigs that do this (gouging) should be publicly tared and feathered...then killed and their bodies put on display as a warnign to others.
Perdue Urges Calm Over Gas
Web Editor: Tracey Christensen
Last Modified: 8/31/2005 6:37:05 PM
Citing credible evidence of price gouging, Governor Sonny Perdue Wednesday afternoon signed an executive order authorizing state sanctions against gas retailers who gouge consumers.
Perdue said he does not believe there is an energy emergency and that the state will not tolerate citizens being fooled by exorbitant gas prices.
The order allows the Governor's Office of Consumer Affairs to seek civil sanctions against retailers who can't justify their prices based on the price they paid for the product.
Perdue gave no specific examples of gouging -- but said he's heard reports of gas being raised from $3 a gallon to $5 or $6 a gallon just this afternoon.
Perdue warned retailers that the state has the ability to check the prices they are paying and plans to prosecute gougers to the full extent of the law.
"Price gouging will not be tolerated," said the governor. "Frankly, I'm embarrassed."
Governor Urges Calm
Earlier in the day, Gov. Sonny Perdue asked Georgians to remain calm over the rising price of gasoline, saying the state's major distributor should be operational by the weekend.
"There's no reason to panic. There's plenty of gas on the way and the only way we'll have problems locally is if we rush out and hoard," the governor said during a Wednesday afternoon news conference. "Stay calm and conserve, don't just run out to top off your tank. Just continue with normal fueling habits."
Despite Perdue's advice, Metro Atlantans spilled out of gas stations and onto busy roadways as they waited for their turn to fuel up. Several stations that were hit with anxious motorists starting early Wednesday morning were out of gas by late afternoon.
The owner of a Shell station on Georgian Parkway in Peachtree City, who ran out of gas just before 5 p.m. Wednesday, said he may not have his next shipment until Monday or Tuesday.
Hurricane Katrina knocked out power to two pipelines that bring gas and jet fuel into the region. The lines have been down for two days while the Metro typically holds onto a 10-day supply of gasoline.
"That does affect our gas supply and it's led to an increase in gas prices," the governor said of the pipeline problem. "This is a temporary problem due to Hurricane Katrina and will be resolved soon. It is not a cause for alarm or panic. It is not a long-term situation."
Governor Perdue said he contacted the state's gas distributors Wednesday morning and has been assured that they are working to address the supply problem. He said that a significant amount of the state's gas supplies are not affected because they arrive at the port, not by pipeline.
"To further ease the supply problem, we have temporarily waived the fuel additive requirements to expand the supply of gasoline," he said. The EPA approved the request to waive the additive, which allows for more types of fuel to come into the metro area.
In Forsyth County, 11Alive Reporter Jennifer Leslie witnessed the price of a gallon of gas shoot up to $3.50 a gallon before dropping back to $3.09 just an hour later. 11Alive.Com found one station in Stockbridge selling gasoline for a whopping $3.56 a gallon and another in Tyrone selling gas for $3.52.
Instead of adding to the lines at the pumps, Perdue suggested, "Why don't just relax and spend the time with your children?...we're going to get through this just fine."
He acknowledged that while higher gas prices are an inconvenience, Georgians should keep in mind the massive humanitarian disaster in Louisiana and Mississippi where thousands of people may be dead.
The Clean Air Campaign is using the gas crisis to ask drivers to sign up for its Commuter Rewards program that offers cash for drivers who switch to a clean commute. Those who use mass transit, telework, carpool, walk, or bike can earn $3 per day.73% of Americans say that illegal immigration is a problem. The other 27% say, "No habla inglis!"
08-31-2005, 08:09 PM #10Regular Guest
- Join Date
- Feb 2004
Glad I'm not a cab driver!! I don't think they can raise there price of a cab Ride can They?? I heard could peak at around 5 bucks a gallon!!! WTF I remember the price of gas when I first got my License 89 cents a gallon those were the good old days. How about you guy's what was the lowest price you can remember??