Gas prices seen spiking again in spring

[UpInArms]

Source: Associated Press

NEW YORK - Get ready for another surge in gasoline prices.

Experts are predicting pump prices, which jumped by almost a dollar a gallon in each of the last two springs in many parts of the United States, will spike again this year as refiners and gas stations switch from winter- to summer-blended fuels.

The increases, starting as early as February in southern California, could push the average national price to a record $3.50 a gallon or more by June.

<snip>

Oil companies deny they are purposely limiting production of alkylate, which like gasoline, jet fuel and asphalt is a byproduct of the oil refining process. But only recently have some started studying how they can boost output, and alkylate prices today are more than 15 percent higher than spot gasoline prices. That means overall costs will jump when it is added in larger quantities to summer-blend fuel.

Read more: http://news.yahoo.com/s/ap/20080131/ap_on_bi_ge/gas_price_outlook

[pinniped]

1. With every friggin season and this asshole* still around, this is a given.

.

[Sherman A1]

2. No surprise here

Just picked up a Toyota Yaris last night for my daily commute. I figure the gas savings (replacing a 98 Ford Ranger with a V6) will pay half my car payment every month. So I get a new car for about $100/month.

[rambler_american]

3. Clinton's last year in office

Summer 2000 Motor Gasoline Outlook

Summary

For the upcoming summer season (April to September), motor gasoline markets are projected to exhibit an extraordinarily tight supply/demand balance.

* Retail gasoline prices (regular grade) are expected to average $1.46 per gallon, 25 percent higher than last summer's average of $1.17 per gallon. That projection also exceeds the previous (current-dollar) record summer average of $1.35 recorded in 1981. Nominal prices are expected to reach a peak of $1.52 per gallon in April-a new record--and decline steadily to $1.39 per gallon by September due to the impact of increases in world-wide crude oil production. These projections presume no disruptions of refinery motor gasoline production.

http://www.eia.doe.gov/emeu/st...

Price more than doubled under *
:grr:

[bulloney]

4. Have you ever seen an industry with as many 'shortages' as the oil industry?

Not enough supplies for the heating season. Not enough production for the projected driving season. On and on.

Funny, but I've never heard of anyone being turned away at gas stations because supplies are depleted. I've never heard anyone being unable to heat their homes because there wasn't an adequate supply to send to them.

I just received a letter from my LP gas supplier, recommending that I begin pre-paying them $400/month between now and June to build up a fund to pay them. That's $2000 for a half-year. My gas costs are already triple from what they were 5 years ago.

And they wonder why people aren't shopping as much? And why they can't afford to make house payments?

Think it's just a coincidence that all of this crap is happening under the watch of a Bush?

[happyslug]

6. Classic way to handle a shortage, by price.

Go to the peak oil sites and the peak oil and Environmental forums of DU and you will see we have a world wide shortage of oil. They is two ways to deal with a Shortage, increase supply or decrease demand. Given peak oil increasing Supply is no possible, thus price has to go up.

Remember how ANY increase in price deals with a shortage. The increase in price CUTS back demand for the product by making it to expensive for some people to buy that product (Or people Prefer to spend they money on other things). Now gasoline in the US has been noted for being "Price inelastic" i.e. on the short term we use as much oil no matter the price (Long term we buy smaller cars and use less oil but that can take 5-10 years to come about, as it did in the 1970s). Right now the price is bring set, NOT by Americans, but by third world users who stop using oil. Sooner or later (and I suspect sooner) the people who can NOT afford gasoline will be low income Americans. The price any group stops using gas is just below the price of gasoline, per gallon, reaches that group's per hour wages. Right now Minimum wage in the US is $5.85 per hour so the US is NOT yet setting the price, but it is getting close.

Peak Oil Forum:
http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=266

Environmental Forum:
http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=115

[spinbaby]

7. Some of our local stations have started limiting sales

My husband who drives a pickup truck (he needs it for work) tells me that many local stations are limiting gas sales to $50.

[One_Life_To_Give]

12. Total or per single purchase?

Until recently the local stations here had a maximum of $50 on credit/debit purchases because that amount was pre-set as the hold amount placed on the card when the transaction starts. So if you needed $60 of gas you would have to pump the first $50 then close out the transaction and start a new one for the $10.

The hold around here was increased to $75 which allows more vehicals to fill without the need for two transactions. Down side is for those who are putting in $5 or so. The hold placed against the account is still $75.

[davekriss]

8. Monopoly Capitalism at work

Just run of the mill multinational oil cartels manipulating markets and governments. Another day, another (billion) dollars.

[kineneb]

11. doubling my propane payment

We have a year-around payment plan so we do not get hit with huge bills in the winter. It was $60/month, but on the advice of the office person, I am now sending in $120. The cost has increased since our bill was calculated. Arrg. Wish I could install a wood stove, but that would raise the homeowner's insurance cost. Guess we will use more electric space heaters, since PG&E gives us a low-income discount.

[Highway61]

5. Absolutely

Just keep working...cut out even taking the family to the beach for a day or two...keep um strapped :wtf:

[Toots]

9. "switch from winter- to summer-blended fuels."

The opposite should accur. The reason for blended fuels in the winter is because less refined fuel gels more easily in colder weather which causes problems. Less refined fuels are much cheaper than more refined fuels. The more the crude is refined from the fuel the most costly the process. The colder weather months demand more highly refined fuels. As the weather warms the fuels can go back to the lessor refined and should in reality cost less. This is just a bullshit reason they are giving for raising prices..

[One_Life_To_Give]

13. Summer blend is to reduce VOC's

Summer blend fuel is formulated to reduce Volatile Organic Compounds from being released in vehical exhaust. VOC's being a major contributor to smog. Winter blend is formulated to reduce CO emissions from your vehicals exhaust. Temperature charts for fuel are a whole different story.

[Javaman]

10. I don't think anyone could have intentionally made this happen!! nt

[woodsprite]

14. That's why our vacation this year is going to be

to the neighborhood pool. If the kids want to go to the beach, I'll throw some sand on them when they're wet ;)

[NickB79]

15. In a few years, $3/gal gasoline will be viewed as a steal

Face it, folks, we've passed the age of cheap oil. Unless we take widespread action NOW, our children will be lucky to drive mopeds and get one decent meal a day when they grow up.