OIL IMPACT DISCUSSION

The current US cost of Gasoline is $2.61 What will the national average be by next weekend?

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I was watching Oreilly Factor earlier today and he said he felt the price of oil was primarily price gouging by the Arabs and Opec.
 
(NOTE: It is not my practice to double-post, and I discourage it. However, I think this story meaningful enough to post in this forum. MP)

I would encourage folks to take note of those prices that seem like the upside outlier. The $2.99 when everyone's at $2.85... etc. Document it. Get a gallon and keep the receipts. If someone jumps 20 cents or more and then a day passes and no one else does, then that's a reason to call your attorney general's office.

In most cases, price gouging isn't just the $6 gas you see on TV. It's those folks who are tacking on an extra quarter or fifty cents. We had a gas station here that was at $2.99 when everyone else was at the low $2.80s. I walked up (with cameraman) to talk to the folks filling up, just telling them they were at the highest place in town. After 10 minutes, the worker inside came out with a phone, and I thought he was going to tell us to get off the premises. (for those who don't know, if there's not a no trespassing sign or marker, you can go onto public-access property until you are told to leave. If you then don't obey, you're trespassing.) Instead, he handed me the phone. The owner was on the other end.

I only told him my name, and my media affiliation. Without saying anything, he said. "2.99 is a mistake! That's a mistake! The (person inside working) made a mistake! It should be $2.89... $2.89!!!. Again, funny thing, I never asked him a single question, or even mentioned to any employee his prices.

It's always a red flag when someone either denies something, or says something was a mistake, before you have even asked the question. Perhaps he was telling the truth, that it was really a mistake.

(eyes and ears open)
mp
 
(NOTE: It is not my practice to double-post, and I discourage it. However, I think this story meaningful enough to post in this forum. MP)

I would encourage folks to take note of those prices that seem like the upside outlier. The $2.99 when everyone's at $2.85... etc. Document it. Get a gallon and keep the receipts. If someone jumps 20 cents or more and then a day passes and no one else does, then that's a reason to call your attorney general's office.

In most cases, price gouging isn't just the $6 gas you see on TV. It's those folks who are tacking on an extra quarter or fifty cents. We had a gas station here that was at $2.99 when everyone else was at the low $2.80s. I walked up (with cameraman) to talk to the folks filling up, just telling them they were at the highest place in town. After 10 minutes, the worker inside came out with a phone, and I thought he was going to tell us to get off the premises. (for those who don't know, if there's not a no trespassing sign or marker, you can go onto public-access property until you are told to leave. If you then don't obey, you're trespassing.) Instead, he handed me the phone. The owner was on the other end.

I only told him my name, and my media affiliation. Without saying anything, he said. "2.99 is a mistake! That's a mistake! The (person inside working) made a mistake! It should be $2.89... $2.89!!!. Again, funny thing, I never asked him a single question, or even mentioned to any employee his prices.

It's always a red flag when someone either denies something, or says something was a mistake, before you have even asked the question. Perhaps he was telling the truth, that it was really a mistake.

(eyes and ears open)
mp

if people are willing to pay it why not? thats not price gouging anymore than a car dealer charging MSRP when it really only has to charge 5 dollars over invoice.
 
Gas in SE MI is now above $3 in many places, with the BP down the street from me selling gas at $3.40 a gallon. I only suspect that we will reach $4 by Friday...
 
In reference to above, it was explained to me by a local economist that stations do "hedge" against their next load of fuel. That is, if they know that their next load would require a price of three bucks, then they would jump their prices to that point.

Because when prices fall, they will have other stations at, say, three bucks when the next load is only $2.60.

That's supply and demand. That's hedging, and rightfully so, against the next load.

However, the "jumps" today have not been to nearly three dollars... but $2.90 instead.

When one jumps to above what eventually becomes the price, then there is opportunity taken. Plain and simple.
 
I was watching Oreilly Factor earlier today and he said he felt the price of oil was primarily price gouging by the Arabs and Opec.

Consider the source! :roll:


Prices finally jumped, from ~2.51 to ~2.89, today in Tucson.
I bought two 5 gal containers Sunday, and am 'stockpiling' :p 10 gallons, about 3 week's commuting gas.
Before too long, I'll be able to sell my 200,000 mile Mazda econobox for a small fortune, and retire! :)

-Greg
 
Originally posted by Tim Vasquez+--><div class='quotetop'>QUOTE(Tim Vasquez)</div>
<!--QuoteBegin-Anonymous
\"There's no question gas will hit $4 a gallon,\"

That's a $100 fillup for an Escalade... $104 to be exact. Wondering if that will be the first $100+ fillup for an unmodified consumer vehicle.

Tim[/b]

Not that far off for minivans either. I have 26 gal tank and at the price next door right now, it would cost me $78 to fill from empty.
 
O'Reilly's an idiot

O'Reilly will always be an idiot. If the Saudis didn't get the prices they get for oil, demand would easily outstrip supply. It basic economics and the foundation of a capitalist economy. Prices are set by demand not by a shadowy group of conspirators. To blame the Saudis is idiotic. We get nearly the same amounts of oil from Canada, Venezuela, and Mexico:

http://www.cis.state.mi.us/mpsc/reports/en.../oilimports.htm

If you want to blame someone, blame all the idiots who commute to work in a pickup truck or the soccer-moms who thinks a Lincoln Navigator is a nice city car.
 
Good news -- gasoline futures and crude appear to be stable this morning, presumably because of yesterday's strategic reserve announcement.

You all can check prices here... gas and oil were $2.57 and $68.85 when I looked just now.
http://www.nymex.com/index.aspx

However since that $2.57 is a wholesale delivery price for September it looks like $3.00+ will be the norm at the pump for the time being.

Tim
 
this bites

ok so i go to work this morning...gas at the station across the street (sheetz) is 3.29 a gal for super(up .20 from yesterday at 5 pm)....i leave work at 5 tonight and its up to 3.59??!! id call this gouging especially since the station 4 miles up the road at the truck stops is still only at 3.29 tonight...think its the "Sheetz" policy? I for one am boycotting Sheetz' from now on...
 
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