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Discussion Starter #1
Heard today on NPR that gas prices are at 96.76 a barrel.

Why the heck have our gas prices at the pump raised 30 cents on the same day?

I hate these gas hungry CEO's where their company is down but yet they seem to get a couple hundred thousand dollar raise every quarter.
 

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This is how I understand it- I could be wrong...


Oil is purchased as 'futures' per barrell. The oil has to get to the refineries- (many down in the Gulf) to be processed into gas. What gets processed at the refineries is oil that was purchased months ago as futures. So- if we're lucky at some point down the road- we'll see some decreases based on those futures that were recently purchased. But gas prices at the pump are sky high right now because the refineries have been hit by the hurricanes down there and are backlogged. Supply of refined 'gas' took a hit when production had to be shut down so prices are rising based on demand. Shortages may occur (and have in some places) but it won't be long until the refineries are up and running again- so hopefully there will be few hiccups and the increases will be short lived.
 

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Yes, what you hear on the radio today about the cost of oil per barrel is for "october delivery".

Current gas station price is for the oil that was purchased last month and refined this month. The wholesalers that deliver the gas to the locally owned stations are the ones driving this recent spike. The local station's margin is only about 25% or $1.00 out of a $4.00 gallon of gas.

Gas will go down. Then back up. Then down a bit again. Then back up....you get the picture. Still, it is inevitable that the decreases are going to get shorter and the increases bigger over time.
 

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beleive it or not!!!!! oil companies spend millions every day to produce gas. they do make fair profits on there investments. if you want to see who makes the most profit on gas check the tax stamp on the pump at you local stations and see how much money the state charges you for doing nothing! then there is the E.P.A. that drives the costs up even more. and while we are on the subject of profits, how much investment is there in a 1 liter bottle of water? i bet it is not $1.79 people will gripe about $4.00 a gallon of gas while they are drinking $12.00 a gallon water!!!
 

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beleive it or not!!!!! oil companies spend millions every day to produce gas. they do make fair profits on there investments. if you want to see who makes the most profit on gas check the tax stamp on the pump at you local stations and see how much money the state charges you for doing nothing! then there is the E.P.A. that drives the costs up even more. and while we are on the subject of profits, how much investment is there in a 1 liter bottle of water? i bet it is not $1.79 people will gripe about $4.00 a gallon of gas while they are drinking $12.00 a gallon water!!!
... Who has money to buy bottled water anymore? Good grief! Get a Brita already! LOL
 

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well water is the best, i can remember pulling a well bucket, the water so cold it hurt your teeth but it was good!
 

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brita is for the rich, I drink water straight from the well out back.
Yeah- you're lucky- well water rocks. Unfortunately, some of us are stuck with Suburban Sludge water... ;) So it's Brita or... whatever the chemical soup du jour happens to be... ;) (Or Brita :upsidedown: )
 

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Just my opinion but I think this is going to be a new trend in gas pricing.
Over the end of winter and early summer gas prices rose until everyone
started raising holy cane. Then (at least here) they dropped down to a more
reasonable price (cause 3.49 is reasonable, right? Sarcasm). I believe that
from now on every time there's an "emergency" gas will be cut off and prices
will blast up by dollars over night...just to drop down again when it's over. It
makes sense from a certain point of view. People understand "emergency",
they don't grumble as much. They make up their money in one week or two
at super-high emergency prices and keep it lower the rest of the time. The
gas shortages also have the added effect of reminding everyone just exactly
how much we need them.
 

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I never understood the arithmetic of gas gasoline myself.

A year ago oil was $65 a barrel. Gas was $3.09

A while back oil $120 a barrel. Gas was $3.74

I understand that there are refining costs involved but I just can't get it to add up.
 

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Discussion Starter #13
Yeah- you're lucky- well water rocks. Unfortunately, some of us are stuck with Suburban Sludge water... ;) So it's Brita or... whatever the chemical soup du jour happens to be... ;) (Or Brita :upsidedown: )
LOL Mama

I remember those days, where I would have to filter my water 2-3 times because it was nasty...bathing in it was not fun either.

I understand about the refineries but another question comes to mind. Several years ago (I believe it was several) I recieved an e-mail that if every person were to purchase only 10 bucks of gas at a clip instead of refueling their tanks to the top that would drive the gasoline prices way way down.

I also read that if the majority of citizens didn't buy gas all in 1 day that the fuel prices and companies would have to drive the price way down.

I don't know if the above makes sense, I'm a little perturbed right now, but I hope you understand.

If not I will try again later perhaps.
 

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Discussion Starter #14
I never understood the arithmetic of gas gasoline myself.

A year ago oil was $65 a barrel. Gas was $3.09

A while back oil $120 a barrel. Gas was $3.74

I understand that there are refining costs involved but I just can't get it to add up.
I feel ya.
 

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.... Here's another thought- if more people chose to live near where they worked and cut back on commute times and overall driving- price would go down because demand went down and they'd have to try to entice back buyers by lowering price. The market wouldn't sustain such astronomical prices. And- people would pay less because they're using less...



LOL Mama

I remember those days, where I would have to filter my water 2-3 times because it was nasty...bathing in it was not fun either.

I understand about the refineries but another question comes to mind. Several years ago (I believe it was several) I recieved an e-mail that if every person were to purchase only 10 bucks of gas at a clip instead of refueling their tanks to the top that would drive the gasoline prices way way down.

I also read that if the majority of citizens didn't buy gas all in 1 day that the fuel prices and companies would have to drive the price way down.

I don't know if the above makes sense, I'm a little perturbed right now, but I hope you understand.

If not I will try again later perhaps.
 

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I never understood the arithmetic of gas gasoline myself.

A year ago oil was $65 a barrel. Gas was $3.09

A while back oil $120 a barrel. Gas was $3.74

I understand that there are refining costs involved but I just can't get it to add up.

Part of the reason is the declining value of the dollar in relation to other currencies. However, you are correct. It just doesn't seem right.
 

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Discussion Starter #17
.... Here's another thought- if more people chose to live near where they worked and cut back on commute times and overall driving- price would go down because demand went down and they'd have to try to entice back buyers by lowering price. The market wouldn't sustain such astronomical prices. And- people would pay less because they're using less...
Or if more jobs were available where people live! That would be great! We hate the commute, but feel very safe where we live.

My husband and I were just discussing the other day funny you should suggest this, no attacks should effect us where we live.

2 problems: 1) being a teacher a pension does not travel from one state to another, so all the time, energy, efforts etc. go down the drain and retirement funds are null and void.
2) again, where we live, there are literally no jobs that is why most people commute 1 1/2 hours to 2 hours away for a job.

Every day jobs seem to be cut and security seems to shrink.
 

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Discussion Starter #18
P.S. Gas is killing us and the unfortunate thought of moving backward to a gloomy, dark, small apartment where it costs 1350/mnth for rent is disgruntling...

We spend close to 400 bucks a month just in gas, but we don't fill up at a clip, it's always 20 bucks here 30 bucks there. It's a pain, but, I feel if the larger percentage of people in the U.S. were to use this method somehow mathematically it would show a decline in the gas industry where they would be forced to drive their prices down.

There was a story once about a chicken and eggs. I'm not going to be able to repeat it necessarily verbatum, but during the holidays such as Christmas, if you ever notice...flour, eggs all baking ingredients rise to top dollar. But if we were allowed to purchase only 2 eggs for that recipe every time we were to bake, it would drive the price down.

Still tired, just woke up ready to go to work for a full day and then get back on the road.

It's so hard for Americans this day to live the "American Dream"...it almost feels unatainable, and for the young people of this generation...I don't know how it's gonna turn out, but it's not looking good.

Sorry for any spelling errors...I'm so tired.
 

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Discussion Starter #19
One more thing, then I have to get going.

Look at ethanol... The government had theses farmers grow more corn...so therefor prices of rice rose since farmers didn't grow their normal rations, so who pays for it? We do, the price of rice rose dramatically! Remember?
The American people always get the brunt of the governments/huge companies failures...(I still believe Enron is part of the gasoline problems we have today) The rich it doesn't really effect, the middle class is sinking and the homeless are further away from that cup of joe...
Just thinking...
 

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in referencing your last 3 posts above- I feel you pain! We keep our tanks topped off as a habit. It's kind of like...being fat and wearing black. Just keep our hands cupped over our eyes and repeat: "I'm invisible!"

As far as the price of everything else...watch the sales, clip coupons. Do whatever it takes to keep your costs down everywhere else.
Food costs and gas prices may fluctuate slightly- but are NOT going to go back to 1989 prices.
Gas was a dollar a gallon- Milk was a dollar a gallon. How I long for those days.
 
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