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Old 02-25-2004, 09:13 AM   #1
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Fuel Prices & Travel

It's rating sweeps times and the local news has been giving us the usual plethera of useless stories and investigations. One did catch my ear yesterday which I think will generate some comment here.

The lead story was "Will gas prices hit $2 a gallon in St. Louis this summer?". Granted I'm sure a few of you have already seen this level dependent upon your locations. With the EPA now requiring 18 different forumlations dependent upon local, refineries in your local area pretty much supply your fuel needs. If that refinery shuts down for any reason, prices skyrocket.

We hit $1.69 this winter and we know that we get hit at least $.10 a gallon higher when ozone season gets here.

Bottom line, what level does it have to hit before you start changing travel plans. I really haven't thought this out for me since my tow vehcile is used minimumly during the winter. I can tell you that a potential $60+ fillup will make me take notice.

Jack
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Old 02-25-2004, 09:33 AM   #2
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Welcome to California ...

The price of gas out here has already topped $2.00 per gallon ... Diesel fuel has been flirting with 2 bucks .. but right now is still below that mark.

Our supply of fuel is restricted because not all Western refineries can formulate our special mix of fuel as mandated by the EPA.

Governor Ahnold is lobbying the Bush administration to exempt California (like New Hampshire recently) in order to bring the price down ... but then .. get this now ... raise the gasoline tax to increase the state's revenues ... so pricing would remain the same. Nice trick, eh?
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Old 02-25-2004, 09:36 AM   #3
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Not to change the scope of this thread but I was told by an RV executive that there are 2 things that can kill the RV boom. One fuel prices and the other being interest rates.

Jack
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Old 02-25-2004, 09:41 AM   #4
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Our tow vehicle gets around 10 mpg....11 something at the best and 9 something at the worst. We drive about 300 - 350 miles usually and last fall when last we got out of here we were spending between $50 and 60$ for those miles.

We think we might change some plans above $4 a gallon. It actually doesn't cost us that much extra to "live" when traveling than it does at home......gas is the extra.

Pet boarding and cost of decent lodging would far outweigh the extra cost of gas....like I say up to $4 - $5 a gallon.

Around here during "the news" report of gas prices the news person says "gas may reach $2 a gallon by summer".....hmmm in the background is a gas station sign showing $2.06 a gallon right now.....course that is for premium +.

Kistler
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Old 02-25-2004, 09:54 AM   #5
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Our local paper this morning said that gas could hit $3 a gallon - and that a lot of expert types think it will be well in excess of $2 this summer. My understanding is that for gas to go to $3 - a barrel of oil would have to go to $80-the most its ever been is $38 so that would be more than double.

At $3 I would take notice - it costs over $50 to fill my tank - that means it would cost about a $100 - - - - soo local trips are looking pretty good.

On the other hand it is an election year...... all bets are off with regard to huge price increases.

My view is that it will go up, but not out the roof - not enough to keep people from traveling - there is a lot of pent up travelers out there.

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Old 02-25-2004, 10:17 AM   #6
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I too have heard the $3 projections. I have to say that right now, I have my car specially tuned for 92-93 octane gas. I have no choice other than to pay for the premium as my car's fuel to air ratios, compression and advanced timing rely on it.

That said we have been flirting with $2 now for several weeks. 35 miles north in Wisconsin the price for the good stuff is about $1.82 while here it is between 1.99 and 1.97.

If they get much higher, even though I understand that a hotel+ airfare still costs more, I will be forced to scale back travel plans to more local locations.

Last time I took a 700 mile round trip with the Bambi, it cost us @ $1.50/gal around $165.00. At $2/gal, that same trip would cost us $220.00. At $2.50/gal the trip cost increases to $275.00 and at the $3/gal mark $412.00.

So much beyond $2 and my economy dollars won't be leaving my bank account!

Eric
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Old 02-25-2004, 11:17 AM   #7
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Regular is $ 2.10 right now in SoCal. Premium up to $ 2.40
Those are the lowest price filling stations around my area.
I believe that the gas will go way over $ 3.00, and soon.
Pretty much rules out my cross country trip this summer, Ca to VA.
On a 500 mile trip one way, the difference in towing mileage to non towing mileage will already pay for a medium quality Hotel for a night. At $ 2.50 Gal.
I guarantee you that going up I-5 through California's Central Valley, premium gas is more than 2.50 Gal.
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Old 02-25-2004, 11:54 AM   #8
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hey jack..

diesel
35 x $1.90 a gallon in chicago...you do the math....

norby
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