Tag Archives: prices

In CA Gas Shortages Feared; Prices Jump

20121004__BW_DN05-GAS-05+PC72NRK_400

Fears of a gas shortage are spreading across the state of California as residents woke up to gas prices that had jumped as much as 30 cents in some places over night. The average cost of gas per gallon in California is now $4.49/gallon and some station in L.A. are listing unleaded prices at $5.69. Warehouse giant Costco has already closed some gas stations around the state, citing a lack of fuel and no way to predict when the next delivery will be. The price jump is being blamed by some economists on a fire and accident at to refineries that caused a slow-down in production, a switch in the seasonal blend and more gas and oil being exported to Mexico. Gas stations are already reporting long lines and worries about future deliveries.

In light of the suspicious but positive jobs numbers today a gas shortage in any state doesn’t seem to jibe with the idea of a recovery.

Always the model of awareness and concern, Governor Jerry Brown has been tweeting about…the Oakland A’s and new tax hikes on the November ballot…two days ago!

 

 

 

 

The sky is falling, but don’t worry! The recovery is booming and Jerry’s going to make sure Californians don’t have to worry about those few remaining dollars in those pesky, cumbersome savings accounts.

crossposted at kiradavis.net

The End is Near

Welcome to the beginning of the end of the economic recovery. On Tuesday diesel fuel was $4.49 per gallon along interstate route 81 in New York State!

The price of fuel is rapidly approaching what Malcolm Gladwell would call the “tipping point”. Diesel fuel hit a peak of $4.72 per gallon in July of 2008. That took a huge toll on the American economy. Housing bubble notwithstanding, the high price of diesel contributed to the economic crash of 2008.

Consider that everything you buy is on at least two trucks before it gets to the store where you purchase it. Not only that, but all of the raw materials used to make whatever you buy are shipped to the manufacturer by truck. Every nickel rise in the cost of diesel fuel adds one penny to the cost of each and every mile of truckload freight. That might not sound like much, but when you think about the number of miles freight is carried in our country, and how many times something is on a truck before it gets into your hands, it is easy to see the extra cost add up. If you watch the price of milk in the grocery store, you will see very quickly that it mirrors closely the cost of diesel fuel at the pump.

What happened in 2008 was that available freight dropped off quickly as diesel fuel approached $5.00 per gallon. With profit margins already slim, companies were forced to pass these added costs on to the consumer. As consumer prices rose to cover transportation costs, customer purchasing dropped. Companies shipped less freight. This caused a temporary excess in available trucks, which put downward pressure on freight rates. Despite the high cost of fuel, carriers were forced to take less for their loads, or park some trucks. This balanced out at the cost of small trucking companies being forced out of business, and drivers losing their jobs; about 200,000 of them by early 2009.

At a time when the nation’s economy is slowly crawling out of a disaster, rising fuel prices pose the most serious threat to our recovery. In 2007 tractor-trailer trucks carried freight a record 184.2 billion miles. By 2009 that figure had dropped to 167.8 billion miles.

Diesel fuel hit its low point of $2.09 per gallon in March of 2009, and we entered a slow recovery. Freight has been steadily increasing since, and trucking companies began hiring again in 2009. By late 2011 hiring was in full steam, and companies are continuing to hire drivers. If fuel rates are sustained at current levels, or if they continue to rise, the same squeeze will happen again, and relatively quickly. The closer diesel fuel gets to $5.00 per gallon, the closer we get to another recession. We have now reached the tipping point for fuel prices, which seems to be about $4.50 per gallon. If we sustain these prices for very long we will see the recently encouraging economic numbers do a rapid about face and the 8.3% unemployment number the President is so proud of will begin to rise.

The Obama Effect

The following chart shows a comparison of prices of certain commodities from January, 2009 when Obama took office to the prices of the same commodities in January, 2011.

            Sourcing is footnoted.

            Leftist should take a lot of tranquilizers before reading this chart.

Just take this last item: In the last two years we have accumulated national debt at a rate more than 27 times as fast as during the rest of our entire nation’s history.  Over 27 times as fast. Metaphorically speaking, if you are driving in the right lane doing 65 MPH and a car rockets past you in the left lane.   27 times faster, it would be doing 1,755 MPH!

Sources:
(1) U.S. Energy Information Administration; (2) Wall Street Journal; (3) Bureau of Labor Statistics; (4) Census Bureau; (5) USDA; (6) U.S. Dept. Of Labor;
(7) FHFA; (8) Standard & Poor’s/Case-Shiller; (9) RealtyTrac; (10) Heritage Foundation and WSJ; (11) The Conference Board; (12) FDIC;
(13) Federal Reserve; (14) U.S. Treasury 

 

Highest Ever Gas Prices for January

American Automobile AssociationAURORA, Ill., Jan. 18, 2011 /PRNewswire/ — AAA Chicago’s most recent Fuel Gauge Report estimates that in Illinois, regular unleaded gasoline has increased $.16 during the past month, forecasting an average cost of $3.22 per gallon for the month of January, which is $.38 higher per gallon than last year.

In northern Indiana, gas prices average $3.09, which is up 16 cents from December 2010 and up $.32 from January 2010. Both Illinois and northern Indiana January averages represent the highest prices ever for the start of a new year.

“Oil prices are trading at nearly $90 per barrel, which is having an enormous effect on the price of gasoline at the pump,” said Beth Mosher, director of public affairs for AAA Chicago. “Unfortunately, at least in the near-term, consumers should get used to paying these high prices at the pump.”

In Cook County, Ill., self-serve regular unleaded gasoline averages $3.37, which is up $.18 from last month and $.41 higher than last year’s price-per-gallon.
In DuPage County, Ill., self-serve regular unleaded gasoline averages $3.25 per gallon, which is a 15-cent increase from December and up 39 cents from last year.
In Kane County, Ill., self-serve regular unleaded gasoline averages $3.22 per gallon, which is 16 cents higher compared to last month and $.38 higher than January 2010’s price.
In Lake County, Ill., self-serve regular unleaded gasoline averages $3.20 per gallon, which is 17 cents higher than last month and up by $.37 compared to this time last year.
In McHenry County, Ill., self-serve regular unleaded gasoline averages $3.20 per gallon, which is 17 cents higher than last month’s average and $.35 higher than January 2010’s price.
In Will County, Ill., self-serve regular unleaded gasoline averages $3.23 per gallon, which is 16 cents higher compared to last month and $.39 higher compared to last year.
In Champaign County, Ill., self-serve regular unleaded gasoline averages $3.15 per gallon, an increase of 19 cents from December and an increase of $.38 from last year.
In McLean County, Ill., self-serve regular unleaded gasoline averages $3.11 per gallon, which is 18 cents higher than last month and $.38 higher than last year.
In Peoria County, Ill., self-serve regular unleaded gasoline averages $3.14 per gallon, which is up $.19 compared to last month and up $.39 from January 2010.
In Sangamon County, Ill., self-serve regular unleaded gasoline averages $3.12 per gallon, which is 19 cents higher than last month and $.43 higher than last year.
In Winnebago County, Ill., self-serve regular unleaded gasoline averages $3.12 per gallon, an increase of 15 cents from December and $.33 higher than January 2010.
In Allen County, Ind., self-serve regular unleaded gasoline averages $3.11 per gallon, which is an increase of 17 cents from last month and $.34 higher than January 2010’s price.
In Lake County, Ind., self-serve regular unleaded gasoline averages $3.09 per gallon, a 16-cent increase from December’s average and a $.32 increase from a year ago.
In Porter County, Ind., self-serve regular unleaded gasoline averages $3.08 per gallon, which is 16 cents higher than last month and $.32 higher than last year.
In St. Joseph County, Ind., self-serve regular unleaded gasoline averages $3.14 per gallon, which is 20 cents higher compared to last month and $.39 higher compared to last year.

Fuel prices are posted on-line at www.fuelgaugereport.com, which updates prices daily for unleaded, diesel and E85 blends of fuel.


SOURCE:

AAA

Web Site: http://www.fuelgaugereport.com