Are We Getting Screwed? Gas Prices Spike Again Over "Possible" Interruption

great graphic.

— 1995e34 (View Profile)

Posted on 9/12/2008 12:42:37 PM | reply to this comment | Votes: 23   

"Tell me why the gasoline that's already in tanks in the ground at the service station, purchased at the going rate when it was pumped in there, suddenly rises by almost 13 cents per litre because the oil companies might have a disruption."

Because those prices reflect aggregate supply, not just what is is the tank, and that supply is a point. THERE IS NO SUPPLY CURVE. Why? Because supply is an inter-temporal function for corporations that operate under a fixed stock constraint which must inter-temporally allocate their production in order to maximize value. Any change to anticipated future results in systemic sub-optimality now- causing the price to rise.

It is for these reasons that one shouldn't mention "speculation" to a natural resource economist. I saw one bit the head off of a girl for just that, essentially calling the argument a "cop-out for the stupid"

— cdoke (View Profile)

Posted on 9/12/2008 12:58:12 PM | reply to this comment | Votes: -22   

This is all from spectulation. Oil is the cheapest it's been in months, but the price around me is about 3.95. This is due to fears from refineries that Gustav and Ike are going to interrupt their production. They need to cover their bases before anything major happens.

It's complete and total B.S., but this happens every time a major hurricane hits. This, hopefully, will blow over within the month.

— Sarcastic1 (View Profile)

Posted on 9/12/2008 1:03:14 PM | reply to this comment | Votes: 17   

Are we getting screwed over for gas?

Heck yes!

Big Oil have been making records profits for the last few years. And if it seem as though they might not make records profits, they just raise the price of oil. McCain will continue to let them do this, while Obama is seeking some sort of reform for the oil companies.

— LexSucks (View Profile)

Posted on 9/12/2008 1:04:39 PM | reply to this comment | Votes: 15   

I'm not going to get into whether it's right or wrong but there are a number of refineries that have had to shut down in preparation for the storm. Baytown and Texas City are major refining sites that are just southeast of Houston. The thing I can't say is that it justifies 15 cents on the gallon...

— budfrogS4 (View Profile)

Posted on 9/12/2008 1:37:14 PM | reply to this comment | Votes: 19   

This has been happening for years. It only garners attention now because of the current higher prices for gas, making every fluctuation seem even larger.

Of course we're being screwed over. The graphic says it all.

— gooch (View Profile)

Posted on 9/12/2008 1:41:19 PM | reply to this comment | Votes: 18   

Nooo, we are not getting screwed.

We are getting fu#ked.

— vladyxa (View Profile)

Posted on 9/12/2008 1:46:23 PM | reply to this comment | Votes: 23   

Can we stop talking about gas prices please. this news is getting old. Like Fox said in the last article "Just Get Over it!"

— t_sotello (View Profile)

Posted on 9/12/2008 1:48:14 PM | reply to this comment | Votes: -21   

Where i live (The bay area) , gas prices jumbed 20 cents in just one day.

— 528i (View Profile)

Posted on 9/12/2008 2:48:09 PM | reply to this comment | Votes: 4   

Well, refining is one thing but oil is low:
OIL (OCT) 100.90 0.03
MARKET MONITOR 02:48 PM

— M35MT (View Profile)

Posted on 9/12/2008 3:00:05 PM | reply to this comment | Votes: 9   

I could get myself banned from this site for my thoughts on the matter.

So I digress...

-00J

— Agent00J (View Profile)

Posted on 9/12/2008 4:53:20 PM | reply to this comment | Votes: -2   

Of course we are. It is the speculators and the people they work for that are driving the major variations (meaning upward) in the petroleum prices. It has a little to do with supply just not much.

— fourmccs (View Profile)

Posted on 9/12/2008 5:07:40 PM | reply to this comment | Votes: 1   

I needed to add one more thing. This is of course just a speculation. not lol

— fourmccs (View Profile)

Posted on 9/12/2008 5:08:55 PM | reply to this comment | Votes: 1   

.50 - .75 cent inc in the tri st area. no doubt.

— prestige (View Profile)

Posted on 9/12/2008 11:26:32 PM | reply to this comment | Votes: 1   

Everyone thinks a 20-30 cent increase is bad. Try actually living in a hurricane disaster zone during the aftermath. I was living in S. Florida when Francis and Jeanne made landfall. Idiot gas stations were charging customers $4+/gal.(almost $5/gal.) for fuel. Although, you'd be hardpressed to find any information on this occurance.

At one point, we had to ration gas at 10 gal. per car because people were taking more than they really needed. Fistfights would breakout when some jacka** not only filled his tank with gas, but also filled his 10 - 5gal. jugs too, or truckbed tank, emptying the pump.

I'll gladly take a price increase where I live, rather than experience the ensuing chaos that awaits the areas that get devastated.

— Bmw8ter (View Profile)

Posted on 9/13/2008 2:12:55 AM | reply to this comment | Votes: 1   

Try driving around Europe and Asia. Gas in the US is VERY CHEAP compared to what the rest of the world pays.

— E36er (View Profile)

Posted on 9/13/2008 2:20:56 AM | reply to this comment | Votes: 1   

What we are paying for is a interuption in production . The refines are not making money in the huuricane . and we are picking up the slack . We are stuck and oil crooks are NOT going to lose any money . Also wasn't it amazing when Katrina hit there was not one hint of a shortage ,just higher prices

— toolatetorace (View Profile)

Posted on 9/13/2008 10:28:04 AM | reply to this comment | Votes: 1   

To all those who think the oil companies are big bad meanies for charging you too much for something you want to buy, I pose this question:

What have you done to reduce your desire for (dependence on, use of) gasoline or diesel fuel?

If you cannot think of anything significant, then shut it. They sell you what you want for as much as you're willing to pay. When you stop paying it or reducing your consumption, I promise you the price will com edown and they will make less profit.

If you owned a business, and people were willing to pay $1 more for each item you sell, would you NOT mark it up that $1? I sure would...why sell for less than what people are willing to pay? Capitalism ROCKS!

— 09CTSVforMe (View Profile)

Posted on 9/13/2008 4:29:41 PM | reply to this comment | Votes: 0   

Oh, and here's the annual Fall newsflash:

The price of heating oil is going to go up.

Because "big oil" wants to make more money? No, it's because winter is coming, and people choose to live where it is cold, so they'll choose to heat their house, and therefore they'll choose to pay for something they want.

— 09CTSVforMe (View Profile)

Posted on 9/13/2008 4:32:09 PM | reply to this comment | Votes: 0   

They should be announcing another 'colder than expected winter' sometime in October.

Its also an election year in Canada and the US, so that should put a strain on oil production.

— huu76 (View Profile)

Posted on 9/13/2008 10:12:01 PM | reply to this comment | Votes: 1   

Oh yeah, and Thanksgiving and Christmas are returning again this year, so that'll cause some unexpected demand for gasoline.

— huu76 (View Profile)

Posted on 9/13/2008 10:12:45 PM | reply to this comment | Votes: 1   

Great looks like big o' Oil Corporations just found a great reason to srew us in the rear (hense the picture)

on no hurricane! looks like we'll have to raise our prices to protect our profits. what would we do if we weren't posting record profits while most familys dont have enought gas TO GO TO WORK.

— Cornholio852 (View Profile)

Posted on 9/15/2008 6:11:21 PM | reply to this comment | Votes: 2   

Its called price gouging. Lawyers will eventually start sueing and we will still see no benefit....

— Porschinator (View Profile)

Posted on 9/15/2008 7:46:27 PM | reply to this comment | Votes: 1   

We r getting screwed. We can bitch about what ever we want to. I didn't need the media to tell me to bitch about gas prices. I have eyes and a wallet.

— snatchandgrab (View Profile)

Posted on 9/16/2008 12:40:13 PM | reply to this comment | Votes: 1