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Author Topic: Gasoline prices could keep falling
Spam & Cookies-mmm
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Gasoline prices are falling fast and could keep dropping for months. "The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving"

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Malruhn
The "Was on Sale" Song


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Yeah, and monkeys may actually fly out of my butt.

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

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Gibbie
Angels Wii Have Heard on High


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But Malruhn, the price is *already* dropping. It's down to 2.57 for regular around here, down from 2.99 just a couple of weeks ago. Gas has always fluctuated with the market.

Gibbie

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guruwan2b
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We're at about $2.50, too. Was up to 3.19 at one point.

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Groundhog
I'm Dreaming of a White Sale


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I saw $2.38 here in Ohio driving in to work this morning. Now I'm just waiting for someone to say it's a pre-election ploy to get more people to vote republican this November. ---Oh Wait, they're already saying it!---
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chillas
Coventry Mall Carol


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Who are "they"?

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tagurit
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I filled up yesterday because I figured it would go up for the holiday weekend. $2.55 is the cheapest I've seen so far, down from about $3.05 at the cheapest a couple weeks ago.

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FrogFeathers
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$2.83 this morning in Illinois (I live in a border town) and it is still $2.99 just down the street from my house.

I hate to say that I actually am looking forward to paying "close to $2 a gallon".

Frog-'memeber the good ol' days when gas was 84 cents a gallon?-Feathers

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Spam & Cookies-mmm
Ding Dong! Merrily on High Definition TV


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quote:
Originally posted by Malruhn:
Yeah, and monkeys may actually fly out of my butt.

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

But we're not willing. From the article:
quote:
Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says.



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Doug4.7
Angels Wii Have Heard on High


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What I hope will happen is gas will get REAL CHEAP, like $1.50 a gallon. Then car dealerships won't be able to get rid of their small high mpg cars (everyone will be back to buying Hummer 1s). Then I will snap up 3 of the small cars for my kids...

Look, I can dream...

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Bettie Page Turner
Happy Holly Days


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Down to $2.73 here, it was $3.15 at the beginning of the month. Whenever I see the price drop, I wonder if I should go ahead and fill up, or if I should wait to see if it drops again. With my 30 MPG Saturn, I can't complain, though.

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Algae
Happy Xmas (Warranty Is Over)


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There's something interesting happening here.

A local gas station has been at $3.06/gallon for unleaded for 3 weeks. No fluctuations, just the same price for 3 solid weeks. (In this time, they've also quit taking credit cards and disabled the pre-pay). Every other gas station in town is down around $2.60/gallon.

I still see people pulling into the expensive gas station. I don't know why.

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Enjal
Little Sales Drummer Boy


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I heard about this on the news the other night. It's definitely a good thing but I have to wonder how long it will last. The highest price recently was around $3. In the last couple weeks, the price has dropped to about $2.80, a little less at the discount places. It would be nice if the price continued to drop. Commuting has become painful.

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robbiev - singin' off key
Happy Xmas (Warranty Is Over)


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quote:
Originally posted by Algae:
There's something interesting happening here.


I still see people pulling into the expensive gas station. I don't know why.

Doesn't make much sense to me either, but there are a couple of places here that do it too. Near my house there is one place that is always 6-10 cents higher per gallon than a place right across the street, yet both places are always busy.

I've seen gas here as low as $2.40, but it's nowhere near my house or my office. On average, right now, it's about $2.65, but until the last week or two, it's been $2.80 and higher.

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Sara at home
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quote:
Originally posted by Malruhn:

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

It makes fiscal sense to lower prices in the months prior to a general election so that the high cost of gas is not a topic of discussion during the election or blamed on the political party in power. Worked in 2004.

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Purple Iguana
Markdown, the Herald Angels Sing


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quote:
Originally posted by Malruhn:

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

It's not so much willing as we have no choice. Some of us commute to work great distances and don't have ready or convenient public transportation. Kinda need gas to make the engine go.

As for fiscal sense... sure it makes sense to lower the price. I've lost count of how many times hubby and I were saying, "Gosh, I'd really love to go to [somewhere], but not with the way gas prices are!" If they lowered the price, we'd drive more. Gas companies still make their money, and it's convenient to consumers.

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Spam & Cookies-mmm
Ding Dong! Merrily on High Definition TV


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I found the "they", Chillas.

Gas prices always fluctuate around the calendar. The price zooms up around the beginning of summer travel season, and starts to fall when kids go back to school.

But I'm sure that's the Republicans' fault. Arranging vacation season to end just before election season. tsk

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HollowMan
Deck the Malls


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quote:
Originally posted by Malruhn:
Yeah, and monkeys may actually fly out of my butt.

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

It does make sense. If I drop my prices, I will take business from the station across the street. If the new profit (at the reduced price) is greater than the old profit, then it makes perfect financial sense. And of course, as soon as I drop my prices, so will the station across the street, (except apparently in this case of the mutant $3.06/gal station) in an effort to reclaim their lost business.

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First of Two
The Bills of St. Mary's


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quote:
Originally posted by Sara at home:
quote:
Originally posted by Malruhn:

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

It makes fiscal sense to lower prices in the months prior to a general election so that the high cost of gas is not a topic of discussion during the election or blamed on the political party in power. Worked in 2004.
They have meds for that, hun.

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First of Two
The Bills of St. Mary's


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quote:
Originally posted by Malruhn:
Yeah, and monkeys may actually fly out of my butt.

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

Gas companies make more money from volume than they do from retail price. People buy more of something when it's slightly cheaper, and then there are those who, if they can, will stock up lots of gas when it's slightly cheaper, betting that the price will eventually go up again. I know farmers that do this - as well as people who heat their houses with oil.

Doesn't work as well for those of us who don;y have anywhere to store a lot of 5-gallon gas cans, but some folks I know have sheds full of them.

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Errata
Happy Xmas (Warranty Is Over)


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HollowMan hit the nail on the head. It doesn't matter what is good for the industry. As long as there is not a monopoly, competition will push prices down.

And no, it doesn't make sense for the industry as a whole to lower prices. Lowering prices 20% (which since it isn't free to begin with has even larger effects on profit) to increase demand by 5-10% to be optimistic (see Spam & Cookies cite that demand is only off a couple of percentage points) is clearly a losing proposition, something that some people on this thread seem not to be thinking too clearly about. It only makes sense when you consider competition.

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Sara at home
Ding Dong! Merrily on High Definition TV


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quote:
Originally posted by First of Two:
quote:
Originally posted by Sara at home:
quote:
Originally posted by Malruhn:

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

It makes fiscal sense to lower prices in the months prior to a general election so that the high cost of gas is not a topic of discussion during the election or blamed on the political party in power. Worked in 2004.
They have meds for that, hun.
Don't get me started on the falacy of that statement. But if you believe that, you certainly wouldn't realize that gas prices are manipulated by the same people who were involved secretly in the development of Cheney's "energy plan".


They also have therapy for people who don't live in the real world.

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Christie
The Bills of St. Mary's


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Yesterday I noticed we'd broken the .90 p/litre barrier - downwards. I think it was around .87. Not sure how much that works out to per gallon - but it makes a nice change from $1.20 or so as it was at some points this summer.

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Sara at home
Ding Dong! Merrily on High Definition TV


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quote:
Originally posted by First of Two:
quote:
Originally posted by Malruhn:
Yeah, and monkeys may actually fly out of my butt.

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

Gas companies make more money from volume than they do from retail price.
If the oil companies make the same percentage of profit on the price of each gallon of gas sold rather than a fixed amount on each gallon, it is to their advantage to raise the price and thus their profit on each gallon even though sales might drop. Eventually they will sell all the gas they produce.

I don't know what how the oil companies take their profit on gas.

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Sara at home
Ding Dong! Merrily on High Definition TV


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quote:
Originally posted by Spam & Cookies-mmm:

Gas prices always fluctuate around the calendar. The price zooms up around the beginning of summer travel season, and starts to fall when kids go back to school.

Traditionally gas prices fall after Labor Day, not before.

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ali_marea
The "Was on Sale" Song


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Pay attention to some of your lower priced gas stations. Not the mid-range ones, I mean the 'dirt cheap' (compared to everyone else) ones. I wondered why my vehicle's performance seemed just a bit off. Not bad, mind you. Not enough to take it in and have it looked at or anything. Just...sluggish. Then I realized that the super cheap gas prices I'd found were places that add ethanol to their gas. No biggie, not bad for your car and it's better for the environment. Just not great for some vehicles' performance.

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Latiam
I'll Be Home for After Christmas Sales


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I use gas with 10% ethanol in it from Sunoco. It's environmentally friendliER than normal gas and since I use the higher octane I can honestly say that I have never seen my car get sluggish. But then, my car is a 2005, which may be why. Maybe it doesn't work as well in older cars?
Are you saying that only the dirt cheap places across the border have ethanol? Here, Sunoco is right up there with Shell, Petro-Canada, and Esso. It's a normal priced one.
I highly doubt this drop will last, so I keep topping up, but I do try to look on the bright side, as some of my mutual fund stocks are in petrochemicals, according to my last prospectus.
It is nice to pay just over a dollar per litre, though. It's 88 and change here but as I said I use the high octane, which was $1.01.
Can anyone tell me why regular has fallen 20 cents and high octane only 9?

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Roadie
Little Sales Drummer Boy


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quote:
Originally posted by Christie:
Yesterday I noticed we'd broken the .90 p/litre barrier - downwards. I think it was around .87. Not sure how much that works out to per gallon - but it makes a nice change from $1.20 or so as it was at some points this summer.

Do you have a general election in November, too? [Wink]

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ali_marea
The "Was on Sale" Song


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I'm an idiot, ignore me and my stupid gas complaints. Maybe the cheapo place I was going to added something else to their gas as well, who knows. But I just filled up at Shell, as I tend to do, and I realized that they add ethanol too. [dunce]

So apparently ethanol isn't what's affecting my gas. I never thought there was a big difference based on where you buy. Now I've got to do some research. I absolutely did notice performance issues when I went to the cheapo place. But I have never noticed performance issues after going to Shell.

I wonder how many companies add ethanol to their gas now... So yeah, I have some more research to do.

ETA: Latiam, not sure what you mean by 'are you saying that only cheapo places over the border add ethanol'. I'm nowhere near the border. The cheapo places I go to are right along-side the other places. And I love Sunoco.

As I just mentioned, I don't notice performance issues from any other place. Just the chepo independants. Not sure why, which is why I want to do some research.

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First of Two
The Bills of St. Mary's


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quote:
Originally posted by Sara at home:
quote:
Originally posted by First of Two:
quote:
Originally posted by Sara at home:
quote:
Originally posted by Malruhn:

If we are willing to pay $3 a gallon - WHY drop the price? It doesn't make fiscal sense.

It makes fiscal sense to lower prices in the months prior to a general election so that the high cost of gas is not a topic of discussion during the election or blamed on the political party in power. Worked in 2004.
They have meds for that, hun.
Don't get me started on the falacy of that statement.


Which statement? The one YOU made, or my response suggesting that your condition is treatable (Which is the only possible fallacy it could contain, being so brief)? Well, you may be right about that... you may already be too far gone for meds to have any effect.

quote:
But if you believe that, you certainly wouldn't realize that gas prices are manipulated by the same people who were involved secretly in the development of Cheney's "energy plan".


No, I wouldn't realize it, because a) it's not true and b) I'm not a paranoid.

The ultimate price of gasoline is set at the pump, not the refinery. The individual franchise owner sets it, which is why prices in my hometown yesterday were $1.59, but prices in my workplace town were $1.65, even though the two towns are only separated by about 35 miles.

Franchises of different stations in the same town are often owned by the same owner/family, or kept similar through a "gentleman's agreement" between the franchise owners.

Now, as to the non-loony reasons oil prices are dropping:

1. The hurricane season is turning out to be quite a bit less severe than originally anticipated, there hasn't been a hurricane in the Gulf yet and no major refinery shutdowns or damage. Less is expected. Less to potentially repair means less need to raise prices to maintain profit margins.

2. The UN is expected to wuss out for a while and endlessly debate Iran sanctions before doing anything. Therefore retaliation is not imminent.

3. The Israel/Hezbollah war cease-fire is holding.

4. The summer driving season is coming to a close.

5. Inventories are higher than expected. Either we're using less, or we've already bought more.

6. We're coming off the summer fuel mixes, heading back to a standard mix.

So, there are clearly enough reasons to expect a drop in gas prices that we need not resort to the "Karl Rove Ate My Two-Headed Alien Elvis Clone" school of conspiracy theories.

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Sara at home
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quote:
Originally posted by First of Two:
They have meds for that, hun.
quote:
Originally posted by Sara at home:
Don't get me started on the falacy of that statement.



Which statement? The one YOU made, or my response suggesting that your condition is treatable (Which is the only possible fallacy it could contain, being so brief)? Well, you may be right about that... you may already be too far gone for meds to have any effect.


More of your insult humor that you find so funny. Let me remind you, I don't share your wonderful sense of humor and don't believe this a topic one jokes about with people you don't know or in a public forum. What you do with your friends and in private is your -- and their -- choice but I think it's pretty clear to anyone who has read my posts over the years that I see no humor in this topic.

I forget, are you one of the lame brains who think it's cute to call people "retarded" as an insult? Post like yours aren't any better than those.

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Jason Threadslayer
Let There Be PCs on Earth


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quote:
Originally posted by ali_marea:
I wonder how many companies add ethanol to their gas now... So yeah, I have some more research to do.

Ethanol Fuel Blends:

quote:
In the United States, one out of every eight gallons of gasoline sold contains ethanol. Most of this ethanol is purchased as blends of 10% ethanol and 90% gasoline, known as gasohol or E10, and is used as an octane enhancer to improve air quality.
quote:
The Clean Air Act Amendments of 1990 mandated the use of oxygenated gasoline in areas with unhealthy levels of carbon monoxide. At the time, the primary oxygenates were ethanol and MTBE. Subsequently, MTBE has been found to contaminate ground water supplies, and the demand for ethanol has increased significantly. The Renewable Fuels Standard, mandated by the Energy Policy Act of 2005, calls for the gradual escalation of biofuels use in the United States. This legislation should stimulate the use of biofuels like ethanol and biodiesel from 4 billion gallons in 2006 to 7.5 billion gallons by 2012.


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All posts foretold by Nostradamus.

Turing test failures: 6

Posts: 5481 | From: Decatur, GA | Registered: Nov 2002  |  IP: Logged | Report this post to a moderator
PrincessLeia
I'll Be Home for After Christmas Sales


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quote:
Originally posted by Christie:
it makes a nice change from $1.20 or so as it was at some points this summer.

I agree, but it sounds like gas is still more expensive on the west coast. I just came back from a trip to Oregon yesterday, and gas was about $3.00/gallon in both Washington and Oregon. Here it is $1.04/Litre, so still hasn't broken the dollar barrier.
Posts: 185 | From: British Columbia, Canada | Registered: Jul 2005  |  IP: Logged | Report this post to a moderator
First of Two
The Bills of St. Mary's


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quote:
Originally posted by Sara at home:

More of your insult humor that you find so funny. Let me remind you, I don't share your wonderful sense of humor

That's not news. News would be you displaying any.

quote:

I forget, are you one of the lame brains who think it's cute to call people "retarded" as an insult? Post like yours aren't any better than those.

I note the irony in your use of the term "lame brain" here, and mock you.

One can indulge in paranoid fantasies without actually being paranoid. Since you don't seem to demonstrate any other characteristics which one would expect to be present in the mentally ill, I must assume that your beliefs come out of choice rather than compulsion, and are thusly free game.

And so I calls the nutballs as I sees 'em.

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"Liberalism is a philosophy of consolation for western civilization as it commits suicide." - Jerry Pournelle

Posts: 14567 | From: Pennsylvania | Registered: Jan 2002  |  IP: Logged | Report this post to a moderator
Roadie
Little Sales Drummer Boy


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quote:
Originally posted by First of Two:
which is why prices in my hometown yesterday were $1.59, but prices in my workplace town were $1.65,

Were these typos? Or is your fuel actually below $2.00???? [Confused] [Confused]

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"The little local company I buy from has CHEAP shipping and I have met their goats." (snapdragonfly)

"And that's one lost erection I'll never get back! You hear me Dan! I'm owed an erection!" (I'mNotDedalus)

Posts: 2658 | From: California | Registered: Jul 2005  |  IP: Logged | Report this post to a moderator
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