Fuel is still on the slow decline here. My last trip to Denver I found $1.35. Here in the mountains we're ranging from $1.82 to $2.03 for reg. unleaded.
Funny, oil dropped several $$$$ a barrel this week. That does not dirctly indicate a price drop at the pumps but it should. BTW - at $35 a barrel 5 years ago gas was around $1.10 nationally - thay are still making a profit - but we are paying for increased costs in lots of non-direct costs that everyone is paying.
Funny, oil dropped several $$$$ a barrel this week. That does not dirctly indicate a price drop at the pumps but it should.
That price you're talking about is for a February delivery in a futures market. If the price continues at this level or lower, you will see it fairly soon but it is not an overnight deal.
Further, we're talking about a 42 gallon "barrel". With my public school education, a $35 dollar barrel computes to about $.84 a gallon in the ground.
Let's see-- we need to add $.184 for Federal tax, $.17 Missouri state tax, and about 9% sales tax in the various municipalities in Missouri. Other states will vary.If you figure transportation, refining, retailing and all the other stuff involved it doesn't sound like a bad deal at $1.39 for unleaded gasoline.
$1.37 for unleaded in the Kansas City area
__________________
Larry
"Turleen", the '57 Flying Cloud
Lone Jack, MO
Pop.528 "You better learn it fast; you better learn it young"-John Fogerty
Please, don't mis-understand my comments - I have nothing but good things to say about the drop in fuel costs. I do realize that there are plenty of additional costs related to the final production of a gallon of gasoline.
Federal and State taxes that were jacked up over the past few years, delivery costs, additional required additives and some things that we may never know about at the public level all roll into the price at the pump.
My only complaint is the out-of-this-world prices we all paid this past summer and the cost and impact that had to our econony. Many feel, and I am one of them, that the fuel jump was a FACTOR (NOT THE ONLY ONE) in the current economic slump (kind way of putting it) that we are all living through right now. Everyone was and are still are pinching every penny they can for the cost increase we are all are still feeling in food, consumable products, and transportation costs associated with commercial products. That 5-10% increase in the cost of living will never roll back - that all happened in a 6 month period. You cannot make that up - even with the 50% drop in fuel - which is only one small expence in our day-2-day lives.
OK - off my soap box.
$1.45 Gulfport, MS Ulead and Diesel was $2.19 today.
$1.39 with 10¢ discount at the Safeway in Pueblo West, Colo., yesterday.
Larry's right about the futures market prices for a barrel of NY sweet crude ($37.71 on Friday). Crude from places like Venezuela is high in nasty stuff and is much cheaper but not many refineries can process it. Brent crude is the European price and is a bit different from the NY price. Wholesale gas was 88¢/gal. Friday and I'm unsure that is a futures price. It does affect the spot market which is in the present. Refiners buy whatever they can get—if they have contracts for the future, they are stuck with high prices or low depending when they bought the contracts. Some hedge with the spot market. The prices we hear on TV are only a part of the story which is very complicated. Large retailers play the same games with gas.
It needed to be said..
It's always a very "complicated process" when it comes to justified the price propped up to a cost/profit level that was..Unheard of a few years back..
Just waiting for the next run-up and, how so uncomplicated it will be for the price to increases, like a ticker tape, at the pump`
Back to/on thread..
Diesel is still at 2.49$
__________________ WBCCI 5292 AIR 807 NEU #64 New England Unit
$1.37 here in STL at the local QT. I filled the van for $25 yesterday. What a shock. It's been a few years since we've been able to do that. Last month's bill for gasoline was $111. Thank goodness....I need that savings to offset Christmas.
Jack
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Jack Canavera
STL Mo. AIR #56
'04 Classic 30' S.O.,'03 GMC Savana 2500,'08 Vespa GTS 250
It's always a very "complicated process" when it comes to justified the price propped up to a cost/profit level that was..Unheard of a few years back..
The pump pricing is not the complicated part. The price/barrel is the world market price--you are the high bidder or you don't get it! It is an auction in that bidders bid for the product. If you want it "badder" than the next guy, you will pay more for it.
Conversely, the reason that gasoline is comparatively cheap is the very same reason that it was $4+ several months ago-demand or lack of demand. The profit level is/was the same regardless of the pump price. Now if a company owned a lot of the their own cheaper oil, then they did better. The retailers make several cents per gallon--their profit is in 44 oz sodas and 99 cent hot dogs.
I know that some folks believe that the high prices were caused by "George and his oil buddies" but it is not true. If that were the case, then the prices would still be $4+, wouldn't they? The demand is way down and down comes the prices.
Actually, the gov't makes more than the oil companies--the nationwide average tax on gasoline is about .48 per gallon. The feds get .17 for doing nothing. The states get more and claim to use it for roads. Who knows what the municipalities get their 7-10% for?
We saw diesel below $2.00 today for the first time. It was 1.97 on the Sandia Pueblo. That makes me feel good since we just bought a new F-250 Power Stroke last week.
__________________ Jim & Rod
Two Burmese cats with attitude Philip and Gus
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Hi, today, actually yesterday, gas went up 4 cents per gallon. 
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