Gas Prices

[dr wogz]

OK, in keeping with the 'off topics' here..

Is there a consiparcy in regards to fluctuating gas prices? What is causing this 'jump then trickel down' pricing trend? We are all experincing it, and I bet we're all a little fed up with it.. But nothing seems to be done about it.

This morning, it jumped 9¢ a liter from yesterday; 86¢ /liter this morning. Was just above 77¢ /liter yesterday. And will probably touch the <80¢ next week.

why? anyone have a plausible reason to why we are at the mercy of 'fluctuating' prices? Why can't they just stay at one price, and change little as teh weeks progress..

I really dont get it!! They seem to jump at the first announcment that the cost of crude goes up, despite the fact, that at the pumps, in the ground, is the same gasonline from last week, which was processed about 1-3 months prior. So why does that cost shoot up?

Looking for an answer that dosen't require a degree in marketing / financaces / securities to understand....

 

[Mike]

Originally posted by Dr Wogz
I really dont get it!! They seem to jump at the first announcment that the cost of crude goes up, despite the fact, that at the pumps, in the ground, is the same gasonline from last week, which was processed about 1-3 months prior. So why does that cost shoot up?

My guess is that they need the money to buy the next delivery of oil, so in a few months time you're using the more expensive oil but the price you're paying is smaller as the companies aren't paying as much for the oil at that moment.

Now thats an (attempted) answer from a 16-year-old Brit with only a GCSE in Business!

 

[stl1951]

The historic trend is the price is increased on Thursday/Friday and starts back down on
Sunday evening/Monday. This model indicates that consumers are willing to pay more of leasure
use than for to/from work travel.

 

[rstaff3]

I have heard a lot of dribble about this recently but can't recite any of it Stuff about elasticity (or is that inelasticity?) of demand and the price being driven by production capacity. I tend to adhere to the conspiracy thing tho. Prices go up immediately when costs go up, so you pay higher prices on gas that didn't cost that much. Then when cost of production goes down, you pay the high price until the cheaper stuff gets to the pump.

 

[arthur dent]

What ever you guys are paying please remember over here in the U.K. we are paying twice as much

 

[JRThro]

Originally posted by rstaff3
I have heard a lot of dribble about this recently but can't recite any of it Stuff about elasticity (or is that inelasticity?) of demand and the price being driven by production capacity. I tend to adhere to the conspiracy thing tho. Prices go up immediately when costs go up, so you pay higher prices on gas that didn't cost that much. Then when cost of production goes down, you pay the high price until the cheaper stuff gets to the pump.

For what it's worth, it's inelasticity.

 

[rstaff3]

That's what I was thinking, geesh, need to bone up on Econ101, I guess

 

[Planet Andy]

It's this talk of elasticity that points to conspiracy for me...don't you see? Estes reintroduces the rubber shock cord and gas prices rise...

here comes the weekend!

Andy

 

[r1dermon]

its pretty interesting how the prices go WAY up in summer...when all the sudden production slows demand increases obviously, but you'd think they'd have the same capabilities year after year...its all about the $$$

 

[wwattles]

I think it's because most plastics are petroleum products, so when we buy balsa nose cones we are reducing the demand for petroleum products, which cuts into the oil importers finances, so they hike up the prices at the pump to offset the nosecone losses.

WW

 

[rstaff3]

Here are some basics https://money.howstuffworks.com/gas-price.htm

 

[dr wogz]

Wattles:

Wouldn't the increase in Balsa Nose cone demand also drive up gas prices? Seeing that these are cut form trees (typically in the tropics), which require farm equipment (tractors) to tend to. ALso are the machines (loggin trucks & chain saws) to harvest said wood, and the ships to transport said trees to the nose cone mill houses.. these all require some form of petrol....



No One?

They say the USA uses 4% of the world's petrolium fuel.
They say the oil companies have an interest to squash 'aternate fuel vehicle' technology. (For obvious reasons)
They say we will run out by [this year plus 10 years]

 

[jflis]

I've seen this too and i'm convinced that *part* of it is marketing....

If gas prices are 75 cents a liter and go to 80 cents a liter, you may complain about it...

*however*, if they go from 75 cents to *85 cents*... ...then DROP to 80 cents, you won't complain as much (heck, the prices came *down*, didn' t they?)

Same result (80 cent prices), different reaction from the consumer...

 

[rstaff3]

I agree with Jim's assessment of this tactic also. People here are so happy with $1.7x a gal after the $2.xx it was a bit ago.

This tactic also worked as a kid with TV/stereo volume.

 

[Borderline Sci]

That’s right! The laws of an open market say that the price of a give item will be what the customer is willing to pay for said item. That is why you guys are will to pay $5,000 for 75 cents of highly compressed carbon that I get for $2,500. You pay what you are will to pay or you don’t buy it until it comes down in price.
So if you don’t like the price of gas don’t buy it. If thousands of people stop buy it the price will come down until they start buying again.

BTW The last report I saw from Real Geologist (not the junk science Geologist) taking in account the current and/or future rise in population we have crud oil in the ground that we know of, that will last us 400 years, this dose not include the oil deposits we have found this year and any deposits we may find in the future.

 

[cls]

I bet most people pay more for insurance every day than they do for gas. think about it - drive 20 miles to work & back, costs about $2. what's your insurance, $1200 a year, that's $3.28 a day.

Gas is cheap. it's amazing, people will pay $4 a gallon for bottled water at the gas station minimart, but they get upset over a few pennies at the pump.

 

[rstaff3]

I get upset because I'm getting old - I remember $0.19/gal...drive a gas guzzling SUV, and still don't mind tap water.

 

[wwattles]

Originally posted by cls
Gas is cheap. it's amazing, people will pay $4 a gallon for bottled water at the gas station minimart, but they get upset over a few pennies at the pump.

I'm continually amazed at people who will drive 10 miles out of their way to pay 4 cents less per gallon.

Let's do the math, shall we?

4 cents per gallon in a 15 gallon tank gets you a 60-cent savings.
60 cents (around here) is equal to 1/3 of a gallon.
1/3 of a gallon in a car that makes the average of 24 mpg is 8 miles.
So they drive 20 miles to save 8 miles worth.

Think about that next time you are going out of your way to get cheaper gas...

WW

 

[KermieD]

You pay more for a gallon of milk than you do for a gallon of gas. Which is worth more to you and, as such, which is more overpriced?

 

[cls]

WW - you made your point just counting the cost of the gas, but over the life of the car other consumables like oil, brakes, clutch, battery, headlights (dang those new ones are expensive!), depreciation of car and interest on the loan, etc. etc. really add up. the cost per mile is nearly as much as the gas.


rstaff - back when you had hair and gas was $0.19/gal, how much was insurance per year? I'll bet it was comparable.

 

[NOFLYZONE]

Heres a nasty little thought for ya- my car at best gets 8 MPG at $1.73 per gal plus insurance on a police package 454ci engine. I cant hide the cubes from the insurance company cause there in the VIN. And I'm too poor to get a car with better milage.

 

[Stymye]

I bought a gas furnace because at the time(not too long ago) it was "cheaper"

yet I almost fell over when I opened the gas bill yesterday.

 

[rstaff3]

I do think about the cost saving vs. milage on various things including gas. This makes sense. It also doesn't doesn't make sense not to care about prices either. The people who stop at the convenient spot near my house are welcome to pay the higher price. I look for the lowest prices, which has been as much as 20 cents a gallon. But then I pass that station anyway

And I won't get started on insurance

 

[Hospital_Rocket]

I buy gas at a station along the way to work becuse in addition to the above mentioned economics, I place a certain amount of value on my time. Same logic went for wood versus commercial energy products.

I don't have the math anymore, however at one time I calculated the cost of installing a wood stove, buying a cord of lumber, and then paying myself minimum wage to chop and stack it. I worked out that I never was able to fully amortize the switch.

That was until I figured in the offset for a health club membership. I mean woodchopping is good excercise.

Of course now that I am a BAR, the concept of mutilating and slowly cremating a RET has a certain appeal...

A

 

[BobH48]

Originally posted by Hospital_Rocket
II don't have the math anymore, however at one time I calculated the cost of installing a wood stove, buying a cord of lumber, and then paying myself minimum wage to chop and stack it. I worked out that I never was able to fully amortize the switch.

That was until I figured in the offset for a health club membership. I mean woodchopping is good excercise.

Of course now that I am a BAR, the concept of mutilating and slowly cremating a RET has a certain appeal...

A

I live on a twenty acre wooded lot. Firewood is free.... but cutting, splitting and stacking it is a big PITA. It is a lot easier since I got my 25 ton hydraulic log splitter.

And....yes, it does have a certain appeal if you think of them as RETs.