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The Gasoline Blues


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Well, we have to be careful who we blame in the "local" scheme of things.

News people interviewed a local guy who closed his

station for two days because he couldn't bear the thought

of having to charge his customers over $3...so, he closed in protest

of what he was being charged for fuel. Earlier in the day, he apparently

had a lot of irate customers screaming at the station employees and

accusing them of price gouging.

So, yes, there are clearly store owners out to make a big buck

(like that idiot in Atlanta who's charging 6 bucks/gal),

but not all. Maybe if you own a little place that's not like

the big guys, you're getting soaked by your distributor?

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An interesting article in today's Boston Herald about how gas prices seem to be showing up in automobile sales. SUV sales seem to be finally slowing down. The weird thing is, this article is opposite of what I heard on FOX 25's news the other night, which said that last month had record SUV sales. Maybe Fox was quoting the "Small SUV" numbers?

FWIW, the second page of the article summarizes sales as follows:

Large SUVs (Ford Explorer, Chevy Suburban etc.):

2005 sales through July: Down 5.4 percent

2004 sales: Down 2.9 percent

Small cars (Dodge Neon, Honda Civic, Ford Focus):

2005 sales through July: Up 2.2 percent

2004 sales: Down 2.2 percent

Cross-over SUVs (Ford Escape, Honda Pilot, Toyota Highlander):

2005 sales through July: Up 18.8 percent

2004 sales: Up 16.6 percent

Large sedans (Crown Victoria, Ford 500, Chrysler 300):

2005 sales through July: Up 34.8 percent

2004 sales: Up 13.9 percent

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$1.29 per litre this morning in the greater Toronto area.  (nearly equivalent to the $6 per gallon gouge in Atlanta)  A HUGE rip-off. Hope you all own some oil stocks.

It's not obvious to me whether this jump in price is good for all oil companies. It's true that they get to sell oil at higher prices, but those dependant on getting their oil from the refineries in the south now have to acquire it from more costly sources.

Guy

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$1.29 per litre this morning in the greater Toronto area.  (nearly equivalent to the $6 per gallon gouge in Atlanta)  A HUGE rip-off. Hope you all own some oil stocks.

It's not obvious to me whether this jump in price is good for all oil companies. It's true that they get to sell oil at higher prices, but those dependant on getting their oil from the refineries in the south now have to acquire it from more costly sources.

Guy

Oh, it's good for them alright. They are going to have record on top of record profits, prices haven't gone up on drilling or processing the oil lately...if they "lose" a little profit in the short run,(They may sell a little less, but fuel is over $3.00 everywhere) they'll get by. <_<

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$1.29 per litre this morning in the greater Toronto area.  (nearly equivalent to the $6 per gallon gouge in Atlanta)  A HUGE rip-off. Hope you all own some oil stocks.

It's not obvious to me whether this jump in price is good for all oil companies. It's true that they get to sell oil at higher prices, but those dependant on getting their oil from the refineries in the south now have to acquire it from more costly sources.

Guy

Oh, it's good for them alright. They are going to have record on top of record profits, prices haven't gone up on drilling or processing the oil lately...if they "lose" a little profit in the short run,(They may sell a little less, but fuel is over $3.00 everywhere) they'll get by. <_<

Nobody is talking about them not getting by -- we're talking about whether their profits will decrease, which they very well might at least in some cases. The primary for the very recent increase (last week) in gas prices has to do with a sharp drop in supply due to refineries going offline.

Guy

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$1.29 per litre this morning in the greater Toronto area.  (nearly equivalent to the $6 per gallon gouge in Atlanta)  A HUGE rip-off. Hope you all own some oil stocks.

It's not obvious to me whether this jump in price is good for all oil companies. It's true that they get to sell oil at higher prices, but those dependant on getting their oil from the refineries in the south now have to acquire it from more costly sources.

Guy

Oh, it's good for them alright. They are going to have record on top of record profits, prices haven't gone up on drilling or processing the oil lately...if they "lose" a little profit in the short run,(They may sell a little less, but fuel is over $3.00 everywhere) they'll get by. <_<

Nobody is talking about them not getting by -- we're talking about whether their profits will decrease, which they very well might at least in some cases. The primary for the very recent increase (last week) in gas prices has to do with a sharp drop in supply due to refineries going offline.

Guy

Guy, I thought I addressed the issue by saying that prices are going up(65 cents on average here in ATL in about a week) so if they sell 20% less, they will still have basically the same record profits....I am sure they can write off the damage they have suffered come tax time..but, you are the budding economist, you tell us! :P

Of course, you don't really hear the media address the lack of refineries in the U.S. (29 years since one was built) bet any future terrorists are quite aware of how weak we are right now because of this....

Oil Refineries? Not in Our Backyard

Friday, April 08, 2005

LOS ANGELES — As prices continue to soar at the pump, critics are pointing fingers in many directions, citing big oil's giant profits or China's increased oil consumption, among other things. But some experts say it's the United States' own fault for not refining black gold into gasoline faster.

Crude oil that comes out of the ground is pretty much useless until it is made into gasoline (search), but the oil refineries that turn the crude oil into gasoline are ugly, dirty and dangerous.

Environmentalists, neighborhoods and even the government are fighting to keep them out of Americans' backyards. A new oil refinery hasn't been built in the United States in 29 years.

"We're operating, particularly during the summer periods when we have peak consumption periods, we're operating, essentially at 100 percent of capacity. So there is no spare refining capacity," said Edward Murphy of the American Petroleum Institute.

While business blames red tape for the shortage of new refineries, critics say oil companies prefer it that way so they can gouge customers.

"We've seen that the industry does not have any incentive, really, especially the big oil companies, to build any new refineries or expand their existing ones because they're making so much money," said Tyson Slocum of Public Citizen.

But now, the Environmental Protection Agency (search) has approved a permit for a new refinery near the Arizona-California border to refine oil into gasoline, diesel and jet fuel.

Environmentalists protested the new refinery, but the plan is expected to proceed.

http://www.foxnews.com/story/0,2933,152922,00.html

Edited by BERIGAN
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Tonight, after going to one of the weekly car cruises 4 miles from our house, I noticed almost every gas station...was without fuel! :ph34r: I don't know if it had to do with the governor doing away with the gas tax for September, people leaving town for Labor day weekend, or what.....Nothing on the 10 O'clock news, so may just be the southside of Atl right now...

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