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Gas Could Hit $4.25 Before Summer
February 20, 2012
Gas prices continue to rise across the North Escambia area, and some industry analysts say the trend won’t reverse in the near future. The price of a gallon of regular unleaded was about $3.53 Sunday, up about a quarter since the first of the year. Experts are predicting a jump to about $4.25 a gallon by the end of April.
Pictured. Gas was $3.53 a gallon Sunday afternoon on Highway 97 in Davisville. NorthEscambia.com photo, click to enlarge.
Comments
24 Responses to “Gas Could Hit $4.25 Before Summer”
It doesn’t really matter what is causing the oil prices to go up, they will continue
to climb as they always have especially in the spring. Supply and Demand IS
NOT SOMETHING YOU CAN CONTROL. What you can control is getting more
education, making more money, living closer to your jobs, tightening your belts,
and PUTTING MONEY IN SAVINGS.
An ounce of prevention is worth a pound of cure, and that goes for money
problems too.
Just when we start to see a positive change in the numbers, here comes this. The recovery will stall, things go back downhill. I hear refineries are unable to meet demand. Some say Israeli interest on wall street are manipulating prices to discredit President Obama, because of his middle policy. Some blame the Arabs, others blame the Persians. I think it is all those Chinese joy riding on their monthly day off. One thing for sure, the days of leisure driving are comming to an end.
Patriot, unfortunately biodiesel isn’t really the answer.
First and most obvious – not a lot of people drive diesel powered vehicles.
Second, the main component in the esterfication process is methanol. Think about the cost of that product as demand increases across the board. Methanol is commonly produced from petroleum products anyway. Not really a sustainable answer in the end.
Ethanol can be used, but most ethanol is derived from corn at the current moment and as you might have noticed, the cost of corn fluctuates with the price of crude oil. What was once sold as fodder is now sold in the energy market.
I’m not against biodiesel – quite the opposite – I’ve got a batch that I’m currently washing down at the moment. I just don’t see it as an economical alternative to solve the gasoline price ‘crisis’.
If we’re going to go that far, why not reinvent the wheel and strap on a homemade wood gasifier to the front of the vehicle and use wood gas to power it? Hey, if it can power a genset, it can (and has) provide fuel for a car engine.
REGARDING:
“Unless, like David, are retired ”
I’m way too young to ever retire
David in late youth
Here’s an idea that will lower fuel costs considerably, and keep our money here in the USA….BIODIESEL.
It’s environmentally friendly, and we (American farmers) can grow it.
Quoting David:
Higher prices do not constitute a crisis unless the prices get so high that there is no way to buy as much as is absolutely needed to live. (Choosing to live a hundred miles from work and choosing to drive a 5 mpg tank would be an example of a self-created crisis. Even then there ARE simple solutions, just not necessarily pleasant ones.)
You are correct
Living where you want in relationship to the distance of your Job, has been a luxury in America due to cheap gas prices. Unlike most European and third world countries, were workers live within walking or bicycle distance of their job. And most of Europe has a fantastic mass transit system in place, and has for years. Think of New York City for the U.S. and it is a joke compared to overseas.
As these previously suppressed countries evolve, they tend to copy our western ideas and lifestyle, hence creating a huge demand for our once “cheap oil”.
The idea of alternative energy sources is feasible, and will happen, because it will have to, in time.
The problem lies with the time it will take to build infrastructure to support any type of alternative source, and the demand for oil will outpace new technology at an alarming rate.
A pipeline from Canada, or anywhere else will not amount to a hill of beans as far as gas prices go. It would only pipe oil to the gulf coast refineries where, after refining be sold to the highest buyer, and most likely exported overseas.
If any of you that think all the oil that was pumped out of Jay over the years went back in a tank at a local Gas Station, think again! It went to whoever offered the most money for it.
It’s not going to get any better folks.
Those of us that have had the privilege to live out in the woods 40 to 50 miles away from our job are the last ones, and we might not all be able to continue to do so. Unless, like David, are retired and don’t need to leave the house much.
One benefit:
You will see the “Mom and Pop” general stores evolve again. And more bartering with the neighbors on other goods. Gas prices will force us to “Go to Town” once or twice a month, like our kin folks did years ago.
My Grandmother lived until 1985 at the age of 93, and NEVER bought one drop of gasoline in her entire life! Bought some Kerosene from time to time.
Its a crisis. Obama and the environmental whackos he aligns himself with made this happen. We need new leadership…and I don’t mean Romney.
Don’t forget about this when you vote in november.
Prices go up.
Prices go down.
Prices go up.
Prices go ???
When they go up, folks tend to blame manipulators.
When they go down, folks tend to not notice although some still suspect some form of world-wide conspiracy to keep folks from switching to thorium based nuclear.
Higher prices do not constitute a crisis unless the prices get so high that there is no way to buy as much as is absolutely needed to live. (Choosing to live a hundred miles from work and choosing to drive a 5 mpg tank would be an example of a self-created crisis. Even then there ARE simple solutions, just not necessarily pleasant ones.)
Inability to get necessary fuels and feedstocks is a crisis whether it is caused by depletion of reservoirs, shutdown of refineries, hijacking by pirates, destruction of war, terrorist attacks against pipelines, not enough money to buy, government regulations keeping supply blocked or any other thing keeping supplier from user.
Dependence on limited sources makes crises more likely. Being able to switch to Bluff Springs nuclear powered electric or clear day daytime solar thermal or compressed natural gas or Pensacola Beach wind turbine power would yield flexibility but might not be favored for a variety of reasons. It’s all a trade-off. Avoid one thing you dislike and get stuck with something else you also don’t like.
David for wise choices
Wonder what kinda story will be concocted to go along woth the price increase…
Google the “Global Oil Scam” by Phil Davis. Purchase electric cars and solar panels.
Oh boy! I *love* spending all my income on gas! The only thing that could make this better is if gas went up to $4.50! …or just make it an even $5.
/sarcasm
Usually,
Gas prices rise as the economy improves. It might not be the U.S. economy, but there is a higher demand for oil somewhere, most likely China.
The #1 EXPORT in the U.S. is gasoline. Several billion dollars worth of gasoline is sold to other Countries around the world. Most of it is not refined from U.S. oil either.
Oil companies import crude oil, refine it into gas, diesel, propane etc., then sell it overseas again. Several crude oil producing countries have plenty of oil, but no way to refine it into a usable product.
Demand controls price for oil, as all commodities. China is a huge buyer, and will pay top dollar for oil.
Oil companies aren’t greedy, but smart at making a dollar.
To put it in prospective, here is an example:
Say you are a Farmer that grows corn. A local buyer will pay you $100 a bushel for your corn, but a buyer in Alabama will give you $140 a bushel. Who would you sell your corn to?
Oil is really know different, its a commodity just like corn.
The U.S. is also a big exporter of Beef. I know a few cattle farmers that will not sale right now because it is ’speculated” that the demand for beef will rise in a few months, meaning higher prices on the hoof and bigger profits. That will mean higher prices in the store for us also.
The demand for any thing we consume affects prices on several other things we consume. When corn goes up, it costs more to feed livestock. When oil goes up, it cost more for diesel to run farm equipment to plant and harvest corn. Its a vicious cycle of simple economics.
And I sure as heck don’t want the Government telling me how much profit I can make off my corn or when to sell my cows. Oil companies feel the same way.
@ Vinnie,
Credit card company’s charge the store owners for them to accept credit cards. Thus the result for a higher credit price over cash. Dodges is usually cheaper than most other places and operates on a smaller markup on gas profits, so they have to charge more for credit to offset the use of the card.
Here comes the great depression….
I’m no expert but it could hit 5.25 by Christmas.
Depends on how much PROFIT the industry needs.
Since the price of oil is based on the US dollar, I suppose the devaluation of our currency has nothing to do with this, either.
And why is DODGES on Nine Mile Road permitted to charge one price for CASH payment and another price for CREDIT CARD payments? I though that was against the law! ! !
Maybe if the Keystone pipeline had not been vetoed by Obama we would have lower gas prices. Canada can sell their oil to China or anyone else. We need the piepline. Email your congressman!
The price of fuel is controled by wall street, there fore the high prices with more to come. Let the good times roll!
If Obama hadn’t vetoed the Keystone Pipeline maybe we’d have a few more galllons of oil here in the US. We can not keep depending on the middle east for oil. Email your congressman. Let them know we want the oil from Canada (our ally) and we don’t want Canada to sell it to China!!
Maybe if the Keystone Pipeline wasn’t stopped by Obama we would have a few more gallons here in the US. We can not keep depending on the middle east for oil!! Email your congressman and let them know we want Canada’s oil!!! Otherwise Canada will sell it to China!
And we are not in an oil crisis????? Then what the heck is going on? Those of us with one income families already have a hard enough time with paying what it is and now we are going to have to pay more? I guess I’m going to have to buy a dang bike and start riding almost thirty miles round trip to work. On the bright side I’ll be healthier and lose some weight- maybe there is a silver lining hidden in there somewhere,lol (if I don’t have a heart-attack first.) When life has you wanting to kick, scream, and cry- kick back, in the teeth; smile, laugh and try to find that silver lining.
And today I bought a truck that gets 10mpg…..perfect timing.