Record Gas Prices: Some Analysts Predict $3 A Gallon By Year's End

LA Daily News ^ | Mar 1, 2004 | Brent Hopkins

[hardhead]

Los Angeles gasoline prices hit a record $2.178 a gallon for regular on Monday -- up more than 50 cents since Jan. 1 -- and some analysts openly talked about it hitting the once-unthinkable mark of $3 a gallon, possibly by late this year.

The Automobile Club of Southern California reported that the price of gas soared 40 cents in the past month, putting it more than 22 cents above price a year ago and 1.1 cents higher than the previous high of $2.167 on March 21, 2003.

[hardhead]

This couldn't happen at a worse time.

[KantianBurke]

I thought with Sadaam out of the picture and the Oil for Food bs abolished that there'd be a glut of oil coming into the market and thus decreasing price?

[hardhead]

Assuming the restored pipeline offloads onto U.S. ships. Otherwise the Frenchies will want their share.

[steve50]

$3/gal would be pretty close to covering dollar devaluation. There's a long term price to pay for printing money as a short term fix.

[Hodar]

But, but, but.... I was told that GW Bush and his cronies went into Iraq to steal their oil, so he and his buddies could all get rich off of cheap fuel....

Do you mean to tell me the Liberals were telling another lie?? < /sarcasm>

[ken5050]

Maybe not...the ANWR authorization bill can be brought up....put a lot of pressure on Senators...

[2banana]

Why don't I care that CA with high taxes and regualtions (that account for most of this increase) are now paying for it?

[Alberta's Child]

The oil supply in not really the big issue here. The major factors in driving up the price of gasoline (particularly in California) are: 1) the decline of the U.S. dollar against foreign currencies (thereby driving up the cost of imported oil even if the overall supply is increasing); and 2) California's idiotic clean air standards, which require refineries to produce a more expensive, specialized gasoline mixture.

Ironically, I believe this run-up in gasoline prices is going to have a positive impact in one respect: any state that is currently considering a gasoline tax hike this year is going to abandon those plans very quickly.

[goldstategop]

I'm glad I don't have a gas guzzling SUV.

[Dead Dog]

I'm glad I have a gas guzzling SUV.

[Fitzcarraldo]

We're being told in California that the high gas prices are because two refineries that make the special California gasoline are down for maintanence. I assume when these come back on line, the prices will come down.

[kahoutek]

The buzz words in this article are "high-powered sports cars" and "SUV's"....it's the owners of these vehicles who are at fault.

Therefore, the only possible fix is to bring back the high car tax.</sarcasm>

[devane617]

Gas prices ! I often wonder why we do not hear more outrage at gas prices than we do. During the past couple of years it seems that no matter the increase in prices we Americans just go with the flow. I am paying about $2.00 per gallon.

[Lunatic Fringe]

Americans can stop crying about gas prices. We still pay some of the cheapest prices for gasoline in the world.

[eddie willers]

But, but, but.... I was told that GW Bush and his cronies went into Iraq to steal their oil, so he and his buddies could all get rich off of cheap fuel....

Do you mean to tell me the Liberals were telling another lie?? < /sarcasm>

<continuing sarcasm>

They are getting it dirt cheap and hoarding the blood gotten windfall profits.

</continuing sarcasm>

[stevem]

and some analysts openly talked about it hitting the once-unthinkable mark of $3 a gallon, possibly by late this year.

This I doubt, but at least gasahol will now be a stabilizing product rather than one that drives up the price of transportation.

[VOYAGER]

Record Gas Prices: Some Analysts Predict $3 A Gallon By Year's End!

"THE SKY IS FALLING", "THE SKY IS FALLING!!"Oh, worrah worrah worrah!

[hardhead]

I first heard this news on 'The Truckin' Bozo' last night. He was talking about the effect it would have on trucking and thought the price for diesel would end up at arounds $2.75. We'll all pay for this twice - at the pump and in WalMart.

[TBall]

I'm glad I no longer have a gas guzzling SUV.

[chuckwalla]

I wouldn't count on that.
If only two are down why is all gas up?
Why are the other refineries raising prices the same?

[31R1O]

You hit the nail on the head, my friend.

[Paradox]

I just moved, and purposely chose a place that was fairly close to a train station, which is used as part of a mass transit system here. I go from driving nearly 70 miles per day, now down to 10. Just in time! As a bonus, my employer pays for the monthly transit ticket (saves them money in that they dont have to spend on more parking spaces).

[rwfromkansas]

Gas prices aren't rising here....

Very nice and low.

[RayChuang88]

I've heard that, too. I expect the price to come down because the price has reached a point where sales will actually start falling as people drive less. The refineries should complete their conversion within the next 14 days and I expect by late March 2004 the price of gasoline to drop as much as 25 to 30 cents per gallon.

Personally, I think the best solution is for Bush to announce that the entire USA will use one formula for gasoline and diesel fuel. That way, gasoline can be shipped anywhere in the USA to relieve spot shortages easily.

[rwfromkansas]

If they did go to 3 bucks though, Bush would be screwed unless he hit his energy plan 24/7.

[Saundra Duffy]

If we have to pay over $3/gal for gas, President Bush is a one termer.

[Capt.YankeeMike]

uninformed you are...my SUV gets 28mpg highway, 22 city. not bad
The wily ol Captain

[rwfromkansas]

not even 1.50 here....

[goldstategop]

That's pretty good mileage.

[<1/1,000,000th%]

algore's in LA???

[varon]

I thought with Sadaam out of the picture and the Oil for Food bs abolished that there'd be a glut of oil coming into the market and thus decreasing price?

Yep, and I'll bet you thought we would find WMD also ;-)

[GraniteStateConservative]

The Saudis just adjust their output accordingly, I guess. The OPECers all benefit from high prices, as long as we don't squeal.

[hardhead]

1.63 in NW central Wyoming.

[chuckwalla]

The problem is that oil co. profits soar.
That is the reason for high prices.
There is no unavoidable reason for high prices.
If someone just picked your pocket would you say that crime is higher elsewhere so it's ok to steal mine?

[GraniteStateConservative]

It would be 8-10 years before we even got the oil from there.

[jungleboy]

FYI - Gas prices increasing from $2 to $3 would cost the "average"* consumer approx $60 month.

* Average: 15,000 miles per year at 20 miles per gallon

[richardtavor]

It is puzzling--I am in the business, and Iraq has restored 3.2 MMBO per day--the most that they ever produced is 3.5 MMBO per day. So who is curtailing production? Rumors are that the Saudi Fields are starting to decline (this I doubt). The other rumor is that OPEC is trying to keep the price up so that the US economy will tank and Bush will lose the election--if that were so, OPEC must really hate Bush to spend $billions to defeat him. My own opinion is that the cold winter dipped into the fuel oil supply more than anticipated--and the refineries have not switched yet to gasoline. If that is the case, we should see gas prices dip in late April or early May.

[traumer]

October Surprise ......

[GraniteStateConservative]

That's Bush's answer to the question when he's asked about it this year? It doesn't exactly tickle the ears.

[Gefreiter]

$ 1.81 for premium in Western MA.

[Pepper's_Paw]

Why be upset. Back in '59 I paid 25 cents per gallon and only made $1.70 per hour. Using those figures with inflation paying $10 per gallon would not be out of line.

[from occupied ga]

This I doubt, but at least gasahol will now be a stabilizing product rather than one that drives up the price of transportation.

Not true. Since alcohol production always uses more fossil fuel (diesel) energy than you get back from the alcohol, then there will never be a price point where alcohol will cost less. see See Pimentel

[commonerX]

Don't get me wrong I don't think the high cost of gas is in some big plan or anything, but civil engineers have been trying to get the public out of their cars and onto public transportation for sometime. Some do feel that the government should force the issue, by making cars too expensive to drive.

[ken5050]

Yes..but..it's the idea...

[hardhead]

I read somewhere that ethanol production had the government subsidizing corn producers...and if it takes so much fossil fuel to produce ethanol, of what benefit is it?

[GraniteStateConservative]

Surprise! Your tax cut gets spent on high heating oil and gasoline prices!

[chuckwalla]

No it's a simple plan for high profits.

If they build decent transportation we will use it.

[Alberta's Child]

I don't think the high cost of gas is in some big plan or anything, but civil engineers have been trying to get the public out of their cars and onto public transportation for sometime.

You might even say that this civil engineer is part of that conspiracy. LOL!

Seriously -- the issue isn't really "auto vs. transit," but is simply a matter of a transportation system's efficiency. Believe me -- civil engineers would love nothing more than to pave this country from one end to the other. The practical reality of an inefficient transportation system is what is driving more and more decisions in this business.

[OneTimeLurker]

Because oil is dollar denominated, the Saudi's benefit is in porportion to the weak dollar. Thus they must charge more because they are paid in Yen and Euros for example.

[contessa machiaveli]

$2.07 for premium on long island, NY.