What Is The Deal With Gas???

[Sean in New Orleans]

Exxon by my house was out of gas for half of today...the news said there is no gas in Pensacola, at all. And to top that off, gas jumped 12 cents today at both stations by my house. Goodness, is this really a result of Cindy, as they are saying. What will Dennis do?!?...bring gas to $3.50 a gallon?! These high gas prices are really getting on my nerves. I'm getting really disgusted...

[streetsoldier]

Supply can't get in (road damage, flooding...makes it hard for 18-wheeler tank trucks), and demand is heavy (esp. for evacuees). Add some insecurity re: Gulf offshore wells on the markets, and gas goes UP.

[birdwomn]

A few comments of this topic, from the financial world:
1) Gas was on its' way up before Cindy for a variety of reasons
2) Several finacial gurus indicated that ANY disturbance to the platforms in the GOM would have a huge negative price impact - this was well before hurricane season started
3) Pensacola residents are understandably hypersensetive to storms - Ivan, Arlene (june 11, 2005), and now Dennis...I am sure they are all thinking "Ivan was bad enough with no power when the weather was relatively pleasant, I am NOT going w/o a generator & gas in July" - so they filled gas cans and tanks very early.

Put it all together, you have the potential for a nice spike in gas.

[Sean in New Orleans]

Well, I've got 3/4 tank in one car, and, I went ahead and put $10 in the other car that was already at a half tank before I got the gas tonight. I almost feel like it is "sickening," to see gas prices go so high when you've got this many people fleeing the city in their cars to NW Texax, N Mississippi, Arkansas, and Kansas...they are making the profits off of these prices.

[Derek Ortt]

better hope this does behave and not go into NO and take out the major rigs and refineries

[iceangel]

I know that Pensacola and Mobile have a hotline number to call to report price gaughing. There have already been over 200 complaints for gas here in Pensacola.

[crazycajuncane]

every station that price gouged should be destroyed by the storm!

It's just not right. What can you do at that time? You can't refuse to get gas.

Govenor Blanco signed a bill that will stop price gouging during hurricane times. I believe that is what I heard today.

[Innotech]

every station that price gouged should be destroyed by the storm!

It's just not right. What can you do at that time? You can't refuse to get gas.

Govenor Blanco signed a bill that will stop price gouging during hurricane times. I believe that is what I heard today.

the cost of gas dring a storm is NOT price gouging. I know first hand hte difficulties dispatchers and drivers face in getting product to hungry stores selling multiples of what they do normally, especially with Cindy taking down a couple refineries and racks being shut down. Its not possible to reduce the supply and increase demand and keep the prices the same. Sorry but thats just not happening.

[crazycajuncane]

every station that price gouged should be destroyed by the storm!

It's just not right. What can you do at that time? You can't refuse to get gas.

Govenor Blanco signed a bill that will stop price gouging during hurricane times. I believe that is what I heard today.

the cost of gas dring a storm is NOT price gouging. I know first hand hte difficulties dispatchers and drivers face in getting product to hungry stores selling multiples of what they do normally, especially with Cindy taking down a couple refineries and racks being shut down. Its not possible to reduce the supply and increase demand and keep the prices the same. Sorry but thats just not happening.

reports of $3.50 and $4... yeah I call that proce gouging.

I could understand a .50 to $1 hike... but we're talking per gallon too.

[Innotech]

every station that price gouged should be destroyed by the storm!

It's just not right. What can you do at that time? You can't refuse to get gas.

Govenor Blanco signed a bill that will stop price gouging during hurricane times. I believe that is what I heard today.

the cost of gas dring a storm is NOT price gouging. I know first hand hte difficulties dispatchers and drivers face in getting product to hungry stores selling multiples of what they do normally, especially with Cindy taking down a couple refineries and racks being shut down. Its not possible to reduce the supply and increase demand and keep the prices the same. Sorry but thats just not happening.

reports of $3.50 and $4... yeah I call that proce gouging.

I could understand a .50 to $1 hike... but we're talking per gallon too.

3.50 sounds about right. Gas WAS on its way up, around 60$ a barrell last I heard, and before the hurricane started threatening, gas was still around $2.35 here in Lafayette, and we are usually osme of the lowest prices around. That would obviously go up in major cities like N.O. or Pensacola due to the maount of people and supply over there. I dont think 3.50 is price gouging at all. Keep in mind how lucky the US is to HAVE such cheap gas in the first place. 3.50 is still extremely cheap considering what most european countries pay.

[vespersparrow]

They just wanna make our lives as miserable as possible.
I've heard all kinds of reasons for high gas prices.
They are saying this isn't 'gouging' but is due to Cindy and having to shut down the refineries.
So the definition of 'gouging' changes and becomes legal when TPTB are doing it.

"Fear premiums'................

I wonder if I can demand a fear premiu, from my boss in order to come to work tomorrow.

Yeah right.
We have 2 options:
Get your butt to work or get fired.

[drudd1]

every station that price gouged should be destroyed by the storm!

It's just not right. What can you do at that time? You can't refuse to get gas.

Govenor Blanco signed a bill that will stop price gouging during hurricane times. I believe that is what I heard today.

the cost of gas dring a storm is NOT price gouging. I know first hand hte difficulties dispatchers and drivers face in getting product to hungry stores selling multiples of what they do normally, especially with Cindy taking down a couple refineries and racks being shut down. Its not possible to reduce the supply and increase demand and keep the prices the same. Sorry but thats just not happening.

reports of $3.50 and $4... yeah I call that proce gouging.

I could understand a .50 to $1 hike... but we're talking per gallon too.

3.50 sounds about right. Gas WAS on its way up, around 60$ a barrell last I heard, and before the hurricane started threatening, gas was still around $2.35 here in Lafayette, and we are usually osme of the lowest prices around. That would obviously go up in major cities like N.O. or Pensacola due to the maount of people and supply over there. I dont think 3.50 is price gouging at all. Keep in mind how lucky the US is to HAVE such cheap gas in the first place. 3.50 is still extremely cheap considering what most european countries pay.

I have to disagree. The gasoline you and I are pumping right now was not refined from $60.00 a barrel crude, but crude purchased at a much cheaper price. The $60.00 a barrel price for crude is for crude futures. You and I are being charged for costs not yet realized, meaning we are simply lining the pockets of the oil companies, since the extra we are paying now goes straight to their bottom line. And of course, they will still get us for the $60.00 a barrel price when it is actually spent, so they get us coming and going. If you think they aren't taking advantage of the consumer, just take a look at their statements to shareholders.

As far as Europe is concerned, their situation is totally irrelevant to the situation here. If they choose to screw their citizens, so be it, but that doesn't mean we are lucky if we only get screwed a little less over here.

The law of supply and demand as it relates to profit is: the more I sell, the more I make. The economies of larger demand is that it will cost me less to refine a gallon of gasoline. It is cheaper per gallon to refine 1,000,000 gallons than 100,000 gallons. Now it will be argued that we don't have the refining capacity to handle demand, thus the price goes up. Well, any one of the major oil companies could take the money out of the billions they are realizing in profit and build one without missing the cash. Problem is, they have no motivation to do it. As long as they can realize obscene profits and sit around doing nothing, that is exactly what they are going to do.

Sorry for the rant, but Corporate America is probably the biggest scam going. I'll shut up now

[Innotech]

corporate america also gives tens of millions of people jobs too....

[gtalum]

Sorry for the rant, but Corporate America is probably the biggest scam going. I'll shut up now.

Da, comrade!




While there certainly are some scammers in "corporate America" as everywhere else, that's a bit of a broad brush stroke.

[drudd1]

corporate america also gives tens of millions of people jobs too....

You are absolutely right, however, the largest employer in America is the private, smaller business sector. But I was referring to the pricing by the publicly owned companies.

A smaller privately owned business is ran to, let's face it, get you, I, or a couple of partners rich. We do that by charging as much as we can, but are held in check by local competition, etc. Now a large publicly held corporation, oh the other hand, has the motivation of making thousands rich. The only way the corporate officers keep their jobs is if they keep that stock price looking pretty. That requires always generating as much profit as possible, constantly growing it year after year, whether the demand is there or not. This means no amount of profit is too much, and steps you or I would never dream of to get that profit number up are done on a daily basis to keep the shareholders happy. In many of the large corporations, just about anything goes as long as in the end the share price and shareholder dividends go up. If an oil company can get twice as much out of us, they are going to do it, justified or not.

Now, as I mentioned above, you or I as small business owners would have our prices driven by the competition. A large corporation has no such problem. If push comes to shove, they will simply buy out the competition. The consolidation of corporate America is the maneuvering to eliminate the competition, and competition is the only thing that will keep the price down.

[drudd1]

Sorry for getting on the soap box guys! I won't be able to hop back on until this evening. Eveyone be safe out there!

[Lindaloo]

Don't blame the gas station owners, blame the refineries. They set the prices. When supply is low and is in demand the prices will go up.

[HurryKane]

I dunno, I'd have to call this:

Thursday AM
- Diamondhead, MS gas: $2.25 regular (and had been that way since Cindy)
- Hwy 603/I-10 interchange (three miles from D'head): $2.19 regular
- Bay St. Louis, MS, various (10 or so miles from D'head): $2.07

and then

Friday Noon
- Diamondhead, MS gas: as I drove by at noon saw them changing the price to: $2.19 regular
- Hwy 603/I-10 interchange: $2.19 regular
- Bay St. Louis, various: $2.15 regular
- Stennis Space Center: $2.07 regular


...some price gouging on Diamondhead gas stations' part for most of the week, and that possibly someone called the attorney general on them or told to them that we could drive just 10 miles away and get gas much cheaper.

Diamondhead's three gas stations, all at the interstate interchange, are the only ones attached to the neighborhood....so they know they have a slightly captive audience. But $2.25 was just ridiculous and to see them LOWER it as Dennis approaches--eh.

[Steve]

>>Its not possible to reduce the supply and increase demand and keep the prices the same.

Well right. But I read last month that the strategic reserves were full or nearly full for the first time in history. The President was supposed to release some of that gas (750k gallons?) which was to act as a buffer.

>>Don't blame the gas station owners, blame the refineries. They set the prices. When supply is low and is in demand the prices will go up.

Depends on the station. Some charge "x" per tanker purchased and wait to adjust all at once. Others gamble at the retail level and will up the price daily or more than once per day. But in reality, it's the futures market that sets the price of gasoline. Between the reduced capacity of the rigs after Cindy and with Dennis looming coupled with paranoid investors hanging onto every piece of news like skittish jr. high girls going to their first formal dance, it's a recipe for everyone but the commodities traders to get stiffed. JMO

Steve

[digitaldahling]

Exxon by my house was out of gas for half of today...the news said there is no gas in Pensacola, at all. And to top that off, gas jumped 12 cents today at both stations by my house. Goodness, is this really a result of Cindy, as they are saying. What will Dennis do?!?...bring gas to $3.50 a gallon?! These high gas prices are really getting on my nerves. I'm getting really disgusted...

The majority of the refineries are along the gulf coast. When a storm enters the gulf, all refineries start taking predetermined steps to shutting down. The closer a storm gets, more of your refineries are closed. Shut down, not producing, not loading trucks. When that happens, there's a shortage. There may be some price gouging going on, but there is truly a shortage of gasoline. As Cindy approached, NOLA refineries, along with one in Mobile, started shutting down. One of the NOLA refineries suffered mechanical failures when they attempted to start back up, then Dennis began his threat and that refinery never got back on line. As of today, I believe the other LA refineries will be shut down completely and Mobile is projected to be off line by late this afternoon.

When Ivan hit and took out portions of the interstate, the only option to getting gasoline to the Pensacola area was by barge. The problem with that became the fact that the docks in Pensacola were damaged and barges could not unload. Almost all of Pensacola is supplied by the Mobile refinery. If trucks and barges can't get there, what gas is left is at a premium and refueling became a near impossibility. I believe most rigs in the gulf are natural gas producers, not crude.

It's not a plan by the government to screw consumers one way or the other.