Gasoline prices hit new high, seen jumping more

Tue, Mar 11, 2008

Peak Oil


This was hot off the press (when I intended to post it 2 days ago). They are saying just what everyone expected… Gas will break some records this year, and not in a good way like, “Lowest gas prices ever.” No, according to this Reuters article, you’re gonna love riding your scooter even more this Summer. I really do feel bad for workers who have to fill up the 40 gallon tank on their trucks. That’s gotta hurt! On to the article:

NEW YORK (Reuters) – U.S. average retail gasoline prices have reached a new high of almost $3.20 per gallon and will likely jump another 20 to 30 cents in the next month, worsening the pain of consumers struggling to make ends meet in an economic downturn.

Gasoline prices are rising sharply as refiners, who have kept prices down in order to compete for sales, become more willing to pass on their higher costs of crude oil, according to an industry analyst on Sunday.

The national average for self-serve regular unleaded gas was nearly $3.20 a gallon on March 7, up about 9.44 cents per gallon in the past two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations. The price has risen 64 cents per gallon in the past 12 months.

“The price increase was entirely due to the higher costs of crude oil,” said survey editor Trilby Lundberg.

Although the latest price represents a nominal all-time high, when adjusted for inflation it is a smidgen below the record of $3.18 per gallon reached on May 18, 2007, Lundberg said.

Lundberg said things will likely get worse, with prices at the pump rising 20 to 30 cents per gallon in the next month as refiners begin passing on to customers more of their higher costs for crude oil.

“Should prices indeed rise 20 to 30 cents, they would vastly exceed previous prices on an inflation-adjusted basis,” Lundberg said.

Refiners since last spring have deliberately refrained from passing on their higher costs for crude oil, in order to compete for sales, she said.

“But refiner profit margins have become so slim that they will now raise prices to recover their lost margins,” said Lundberg.

Hold on tight, this year is gonna be a rocky one. Will Americans even notice? Prices will likely hit $4 a gallon this summer and then when they drop to $3.50 a gallon in the Fall we’ll say “Whew, I’m glad gas has gotten cheap again.” As of today, the highest price for a gallon of gas in the USA is on the west coast with prices just under that $3.50 mark in Portland and Seattle and actually hitting $3.60 in California, $3.65 in Hawaii and $3.76 in Alaska. Click on the title link to read the whole story.

PS> I don’t know who Wyoming and New Jersey are sleeping with, but they’ve still got sub $3/gal gas over there.

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6 Responses to “Gasoline prices hit new high, seen jumping more”

  1. Pedro Pinheiro Says:

    Let me do the annoying European part :-) Gas (regular) here in Portugal, as of today, was €1.40 a liter, or €5.29 a gallon. With today’s exchange rate of 1.53 USD to 1 EUR, that’s $8.10 USD to the gallon, for regular fuel. Diesel was a cheaper $7.00 to the gallon.

    Reply

  2. Kenneth B. Says:

    in addition to that: In the Netherlands (aka Holland) we now pay 9.31 US dollars for a gallon of regular.

    Enjoy it while it lasts…and over in the US gasprices are still relatively cheap. But wait until the Saudi’s start pricing the oil in Euro’s instead of dollars…because that’s what they are about to do.

    Reply

  3. ScooterScoop Says:

    Thank you both for the sobering comments. This also helps answer the question as to why Americans ride motorcycles and scooters less than our European brethren. Sure, in Europe they ride to alleviate traffic congestion, but if we Americans were paying $5.29 – $9.31 per gallon our scooter market would open RIGHT up. I’d bet on prices nearing $5.00 per gallon by the summer of 2010.

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  4. Anonymous Says:

    Americans will never opt for scooters. First, the distances and speeds traveled in most peoples daily commute mean only the largest scooters would suffice. Second, Americans will move down from an SUV to a large sedan before they ride scooters… and if gas prices get worse move down from a large sedan to a mid-size sedan before they ride scooters… and if gas prices get worse move down from a mid-sized sedan to a smaller automobile or perhaps a hybrid before they ride scooters.

    Reply

  5. Anonymous Says:

    *******************************************
    Really need more Dragster-250 news & info

    Give us more background on the Dragster-250. Tell us about the frame design (naked photos would be nice), explain the suspension components, the braking system, and the electronics. I hope is doesn’t have an alarm/disabler like Piaggio which seems to cause nothing but trouble. What is the wheelbase of the 250 version? Give us more background on the engine choice. Does it in fact have the Piaggio 250-Quasar engine and is it the Euro-2 or Euro-3 version? Does it use the stock engine mapping and airbox from Piaggio? Does it use the stock Piaggio transmission and if so why not sell it with the J Costa Variator as standard equipment? Everyone is going to swap the stock variator to get more performance anyway. The thing about the Dragster isn’t just the looks; the reputation is for speed off the line. If it’s sluggish and hesitates because of the transmission people will be dissapointed. Is it using the stock Piaggio drive belt or an upgrade Kevlar belt? Will there be any performance upgrades – I’m not really concerned about top end speed, it’s all about going blazingly fast from the stoplight that counts. Actually, I really wish the Dragster used the ECVT from the GP800 as we simply aren’t getting the performance out of the 250-Quasar engine we should due to the rubber-band transmission. I see that it’s listed as about 80-lbs lighter than the Vespa-250. That’s great but can we get the weight down even lower? It would be nice if it were 100-pounds lighter. Maybe build a more-expensive special-edition RR version for enthusiasts like me and [1] lighten the weight even more by using an aluminum frame and [2] use the ECVT transmission with thumb shift from the GP800. And finally, who will be the dealers for Seattle and Portland?
    *******************************************

    Reply

  6. menschkie Says:

    Many Australians I know are selling their cars because they can no longer afford to keep them on the road. If you add up $500 a year for vehicle registration, plus servicing, plus the average cost of $70 to fill your car with petrol. No wonder scooters are becoming more popular with inner city dwellers.

    Reply

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