Fuel costs - a comparsion from Feb 2006

[belfert]

I didn't realize how high diesel prices had gotten until I found a receipt from a fuel stop in Hebron, IN this past Feb.  I paid $2.239 for diesel for my diesel VW Golf at a Pilot truck stop.  (I was on a bus hunting trip.)

Today, the same Pilot truck stop is charging around $2.439 a gallon.  (The posted price on the web is $2.399, but cars pay at least 3 cents extra tax.)

I thought prices had come back down to the prices earlier this year, but I guess not.  Here in Minnesota, prices are $2.489 with some stations still at $2.699.  (Who is stupid enough to pay 21 cents a gallon more?)

Brian Elfert

[TomC]

Here in L.A. I paid as high as 3.47 for Diesel at its' highest.  It is now down to 2.49-almost a buck a gallon.  I consider that a pretty big difference-a big difference a buck makes.  Good Luck, TomC

[belfert]

I can't recall if I ever paid more than $3.30 at the peak.  Gasoline peaked at $3.25 here in Minnesota.  I paid as much as $3.45 a gallon for diesel in the fall of 2005.  Most of my diesel goes into my VW Golf TDI at two to three tanks a month.

Our prices haven't fallen quite as much as yours.  I'm suprised California prices for diesel are so low right now as the price is usually way up there.  I paid $2.75 a gallon for gasoline in San Francisco two or three weeks ago when I was there.

Brian Elfert

[ceieio]

In August, I paid $3.56 per gallon in eastern Oregon for diesel (yes, in the bus).  I only took in half a tank and headed for cheaper ground.

Craig - MC7 Oregon

[H3Jim]

Don't worry it will get back up there.  The Saudis and others are cutting back their supply.

[Happycampersrus]

That just amazes me. No one could come up with any other excuses (hurricane, war, cold winter, etc), so what can we do to raise prices? I know, I know, lets cut production. The world is not hurting for crude, but boy does GREED sure play a factor.

[JerryH]

Yeah, saw the evening news the yesterday ... they said OPEC was cutting production to get the pricing back up.  Seriously ... that's what they said.  You think they could have lied and blamed it on storms, wars, something.  But they blatently said "...get pricing back up..."

Jerry H.

[Dallas]

I have an idea, and I know there may be something I'm missing, but, Here Goes:

We are the major supplier of grain to the arab states, correct?

We give the Arab states "Most Favored Nation" status so that they can buy our grain more cheaply, Correct?

Why not remove the MFN status and everytime they raise the price of a barrel of oil by $1.00, we raise the price of a bushel of wheat $1.00.

After all, Aren't we at war on 2 fronts? and doesn't that mean the supply of grain for export is in danger of reduction?

And didn't we have terrible hurricanes last year? I know that had to cost a lot of farmers a lot of money.

Now someone explain to me how I'm wrong, PLEASE?

As I said, I have a simplistic viewpoint, but if someone hits me in the head with a bat, after I get up I'm darned sure gonna go after them!

Dallas

[bobofthenorth]

We are the major supplier of grain to the arab states, correct?
We give the Arab states "Most Favored Nation" status so that they can buy our grain more cheaply, Correct?
Why not remove the MFN status and everytime they raise the price of a barrel of oil by $1.00, we raise the price of a bushel of wheat $1.00.

I wish it was that simple but unfortunately it isn't.  If the US tried what you suggest there's a dozen countries lined up who would jump into the breech to supply the ****ards, my country among them.  And some of the largest brokers involved in the transactions would be US grain companies like ADM & Cargill.  They've done it before to the Russkies and they wouldn't hestitate to dodge an embargo to the Arabs.

OPEC didn't work until we let it work in the early 70's.  Prior to that time we weren't as dependant on imported oil.  Cutbacks in OPEC production at that time weren't a significant factor in the N.A. market.  When OPEC tried to cut back the price wouldn't move immediately and some member would inevitably ignore their quota.  We let our advantage slip when we didn't develop Alaska.  Once production controls started to have an effect on price it was easier for OPEC to keep every one onside.  Now we're paying the price.  Domestic self sufficiency is our only long term solution.

[Happycampersrus]

Well said Bob, I have to agree as I have been watching oil prices since odd or even license plates. Man, did we ever drop the ball on the Alaska development and we are at a big disadvantage for it.  

[Dallas]

Thanks, guys for explaining it to me. I really do have a simplistic world view.

Dallas

[belfert]

Yeah, saw the evening news the yesterday ... they said OPEC was cutting production to get the pricing back up.  Seriously ... that's what they said.  You think they could have lied and blamed it on storms, wars, something.  But they blatently said "...get pricing back up..."

OPEC is ultimately shooting themselves in the foot.  If oil prices stay high, consumption goes down and everyone works harder to find alternate fuels.  At lower prices, alternate fuels are not economical and demand stays steady for oil.

When oil was around $30 to $40 a barrel, OPEC was pumping as much oil as it could to keep a lid on prices so consumption would stay up.  Hard to understand with prices nearly double three or four years ago why they want even higher prices.  Just plain greed I guess.

Brian Elfert

[buswarrior]

Hello.

" price goes up, demand goes down"

Well....

In America, in March of 2006, a month of little note travel wise, except that the price of gasoline and oil was approaching/ at the heights of well over $70 a barrel....

Apparently, America burned more gasoline that month than any month recorded.

Any month before, from any year....

If this is true, I'm not sure what the solution is, higher prices sure aren't slowing everyone down.

Again, smarter folks than me might want to compare the price of oil in 1973 and the present, someone said that $80 a barrel or so is the equivalent of the height of the '73 crisis, which really saw a lot of people hurt due to the cost of running the family jalopy.

Veggie oil smells better and better, EH?

happy coaching!
buswarrior

[NJT5047]

Veggie oil smells better and better, EH?

happy coaching!
buswarrior

Just as soon as WVO becomes a major player in the fuel market, the feds and states will find a way to "regulate" it (for the children of course). 
The only reason they are not taxing it now is related to the minute amounts being produced. 
I'd be willing to bet that WVO production and use on highways already runs afoul of many state laws.  
Conversly, as soon as petrol fuel drops, bio fuels will be placed soo far on the back burner.
We are going to pay the highway taxes...one way or another.   Eventually bio fuels will be treated similar to home-brew...it's OK as long as it has a tax stamp! 
There ain't gonna be no free lunch from the highway taxman! 
JR
BTW Dallas, Australia and Canada will burn our butts with export grains if we add .02$ to the ton.  We are supporting our farmers as well as feeding the Arabs.  Sort of a double-edged sword.   The Arabs got the money (ours) and oil...we got the highways and cars...and local realpolitik that won't drill for oil or build refineries...wouldn't want to risk damage to a beach now would we!  AAAAARRRRRGGGGGG

[belfert]

Just as soon as WVO becomes a major player in the fuel market, the feds and states will find a way to "regulate" it (for the children of course). 
The only reason they are not taxing it now is related to the minute amounts being produced. 

You are supposed to pay road taxes on homebrew biodiesel and probably on WVO too, as long as it is burned in a highway vehicle.  It would be rather difficult for a cop to tell if you were burning diesel or something homebrewed so I have no idea how they would enforce it.

You can bet the tax man wants his road taxes any way he can get them, especially the way roads are so poorly funded.

I'll bet WVO and biodiesel are still feasible for the homebrewer even with taxes.

Brian Elfert