Gas is climbing

Went up $0.20 over night here the average price $3 gal for regular.

What is it in your neck of the woods

$2.77 for 87 octane

$2.94

There was a great article I read about a week ago and talked about why it is rising. If I can find it I will give the link. In a nut shell it is oil politics and how oil company's can control their industry.

Just in time for Memorial Day weekend....the first one in 10 years we decided to travel is going to cost us 25-30% more in fuel now.

Summer driving season is almost here, good reason for the oil companies to raise price and make even more money.

I havent seen any at three dollars yet, but close.

Many things come into play they say switching from summer to winter blends (created shortage), gas goes up during the tourist season and that plant blew up in WI was that a refinery was it not?

$3.50 and up here

It is geopolitics. Nothing more

Higher Dividends

it will go down some in oct

Big oil's way of thanking us for the billions they got in tax cuts.
Nobody really thought we average working stiffs would get to keep the little extra that was put back into our take home pay, did they?

Let's say you burn 10 gallons of gas a week and fuel went up $.50. That is only $5 a week. I am sure that I can find other ways to make up that five bucks. Not sticking up for the oil companies but everyone makes it out like it is costing $50+ a week extra.

Jerry Jr.

gas is costing me about 30 buck a week more. diesel prices have slowed and put on hold a lot of construction projects with a lot of dirt to be moved. 20% is a big cost increase in just a few months. effects a lot more than just the cost of driving to work. you think stevens transport is going to haul your groceries at the same freight rate? how about crete transportation? think your new blue jeans are getting to Walmart at the same price?

Haha. Gas rising. You guys are hilarious! We are $1.40 a liter here now in most places!! Even with the exchange, that's still well over 4 bucks a gallon USD!

And that is pretty much Ontario wide. The average Ontario fuel price is $1.35/ liter according to gas buddy, and that is expected to rise.

You only burn ten gallons a week? Do you have a job or work at home?

Every dollar spent on fuel is one less spent elsewhere. If this would have happen under a dif president, most everyone would be jumping in and blaming them.

Who uses only 10 gallons of fuel a week?

It's been very low for a long time. When everything else moved up, gas really didn't.
Remember four dollar gas in 2008 that unwound the high levels of big SUVs and trucks in the market? That was 10 years ago. Milk went up in ten years as did other things.
Like interest rates I think everyone got a little complacent when things were cheap for so long.
Jim

Ford motor company has decided to stop production on their fuel efficient compact cars to focus on the more lucrative truck and SUV markets. I'M m glad I own oil and gas stocks instead of Ford! LOL

Actually, it is about every 2 weeks for me. It is a bit more for my wife since she is a full time homemaker. She gets to do most of the running. Probably about 15 gallons a week between the two of us.

100 gallons of fuel to ship product. Price went up $.50 ($50 more for freight). How many pair of jeans can a tractor trailer haul? 500 pair would be a $.10 increase per pair.

Jerry Jr.

Husband and wife commuting to work, transporting children, getting groceried, etc is more like 30 to 40.

If the gas tax went up .50 there'd be riots in the street.

I average around 160 miles a day. Getting expensive to work, for sure!

www.gasbuddy.com

$2.49 here.

It was 2.96 today when I filled up my work vehicle.

I only use about 6 gallons a week in my personal vehicle when it isn’t hunting or trapping season. I figured that out because I drive about 8 miles to work and back and 6 miles to church on Sunday. I probably use double that during hunting and trapping. My wife does the same in her Jeep. Those are averages, we do have to drive about an hour to doctors appointments for our son to the children’s hospital every so often.

Truth be told, I don’t even pay attention to how much gas I use. I know I get a little over 16 miles to the gallon and I fill it when it gets to a quarter of a tank.


Now my work vehicle... I put between 50 and 150 miles a day.

We don't either. Bought a new vehicle 6 years ago and only have 46k on it. Getting 26mpg, that puts us about 6 gal. a week.

OK Mr. Economist, tell me how much profit "Big Oil" is making per gallon.

Or even their profit margin.
Compared to say McDonalds

You know , AFTER exploration, engineering, extraction, transportation, refining, more transportation, and a hundred other things.

Now tell me how much per gallon the Feds and state gov gets per gallon.
For doing NOTHING....

http://www.gaspricewatch.com/web_gas_taxes.php

The United States federal excise tax on gasoline is 18.4 cents per gallon (cpg) and 24.4 cents per gallon (cpg) for diesel fuel. On average, as of April 2012, state and local taxes add 31.1 cents to gasoline and 30.2 cents to diesel for a total US average fuel tax of 49.5 cents (cpg) per gallon for gas and 54.6 cents per gallon (cpg) for diesel.


Some states charge an excise tax while other states have a flat tax. The below table displays state taxes plus fees, plus the 18.4 cents-per-gallon (cpg) federal excise tax. Additionally, some local counties may additionally charge an excise tax on gas, which is not reflected in this table. Please consult your specific local government for more information.

What do the state and local governments generate in fuel taxes?
For a chart of state and local revenues generated by fuel taxes, please click here.

U.S. Gas Taxes (cents per gallon)
State Gas Taxes/Fees (cpg) Diesel Taxes/Fees (cpg)
Alabama 39.3 46.3
Alaska 26.4 32.4
Arizona 37.4 43.4
Arkansas 40.2 47.2
California 69 79.5
Colorado 40.4 44.9
Connecticut 64.4 70.6
Delaware 41.4 46.4
District of Columbia 41.9 47.9
Florida 53.4 54.9
Georgia 47.8 56.3
Hawaii 68 75.2
Idaho 43.4 49.4
Illinois 62.8 70.1
Indiana 61.4 76.2
Iowa 40.4 47.9
Kansas 43.4 51.4
Kentucky 46.2 43.9
Louisiana 38.4 44.4
Maine 49.9 57.1
Maryland 41.9 48.7
Massachusetts 41.9 47.9
Michigan 61.3 64.4
Minnesota 46.5 52
Mississippi 37.2 43.2
Missouri 35.7 41.7
Montana 46.2 53
Nebraska 46 51.4
Nevada 51.5 53
New Hampshire 38 44
New Jersey 32.9 41.9
New Mexico 37.3 47.2
New York 69.6 75.1
North Carolina 57.6 63.6
North Dakota 41.4 47.4
Ohio 46.4 52.4
Oklahoma 35.4 38.4
Oregon 49.4 54.7
Pennsylvania 50.7 63.6
Rhode Island 51.4 57.4
South Carolina 35.2 41.2
South Dakota 42.4 48.4
Tennessee 39.8 42.8
Texas 38.4 44.4
Utah 42.9 48.9
Vermont 43.9 53.4
Virginia 38.6 44.7
Washington 55.9 61.9
West Virginia 51.8 56.5
Wisconsin 51.3 57.3
Wyoming 32.4 38.4

At least one company is making over 6 BILLION MORE because of the tax cuts. The boost at the pump is just a thank you and an, "Oh, and by the way, we want the money you taxpayers now save because of tax reform."

Could it be an early sign of inflation? Economy is humming along so more fuel is being used, more people working drive wages up so the oil companies need to pay more to keep the drills going.

Let's remember that the "6 billion" they SAVED was theirs in the first place.


https://www.wsj.com/articles/SB10000872396390443687504577563383982418536

It doesn't matter what oil companies need to pay, they don't set the price of oil.

I agree with Ken, I think much of it is geopolitical forces at work.

Also, generally a cure for high prices is high prices and a cure for low prices is low prices. When the price of oil go so low drilling slowed down quite a bit.

Oh, and inflation is coming, it was predetermined.

And the increased price takes money from our pocket that is ours in the first place too.

The difference is unlike a tax, you have options. Ride share, walk more, ride a bike, get a vehicle with better mileage.

Great point for most!

I made a conscience decision to live close to work for this very reason. I can easily walk or bike to work and have been bike commuting year round now for 8 years.

High energy costs sucks more money out of the economy than nearly anything else.

315 a gallon Today

Don't those that work in the energy industry benefit amd spend?

Pretty sure the USA has the lowest or ine of the lowest fuel cost in the 1st world. Still sucks that its more money out of my pocket and into someone else's.

No one is forcing you to buy it. Why would you blame the oil companies for the price increase. 70% of the oil in the world is owned by sovereign nations. The oil companies are buying the crude from those countries.

Point the finger at OPEC. They are the ones that cut production to force prices higher. Also the collapse of Venezuela has taken a half million barrels per day out of the market....then you can add the loss of Iranian oil due to sanctions. And don't forget the unrest caused by North Korea. The worry of war always pushes oil higher.

It's a wonder oil is as low as it is.

Wouldnt all those factors you mentioned have caused prices to rise earlier though? Those things are nothing new...

They did. The OPEC cuts had a big impact back in December. The Iranian sanctions are only about a week old and Venezuela is collapsing every day. Meanwhile the world economy is improving...increasing the demand for oil.

Today I paid $3.75 per gallon for recreational gasoline - no ethanol. I use it exclusively in every small engine and outboard motors and atv, etc. I notice a big difference - everything performs better. I cannot get it at the pump or delivered without road tax.

The diesel that I have delivered is off road only so it has no road tax. It goes in tractors.

I do buy on road diesel for my Mule since I occasionally use it on the road going to other farms.

I don’t use much gasoline in vehicles for personal stuff except for doctor trips for wife, grocery store, and drug store. I don’t use much for hunting or trapping locally - close to home and use atv or Mule. I do use quite a bit for my wildlife business and trapping jobs.

3.19 this morning. I've got two trucks. An old Sonoma and a 2013 f150. Thinking about selling the f150. Don't drive it much. Can't stand the mileage. Spoiled by the Sonoma.

Nobody is forced to buy gasoline or any other fuel. For most of us it is simply a luxury.

It sure is ! A heck of a work saving product !

Here's a news piece from a couple hours ago.

https://www.streetinsider.com/Commodities/Oil+prices+slump+as+Saudi+Arabia+and+Russia+consider+output+boost/14237331.html

If you got it, a truck brought it.

Ever try pushing one of those things?

We got a transit system that charges $2.50 to ride anywhere in the county. To ride to the city it costs $3. It just runs during the week.

Crude oil down 3% this morning. Apparently the evil oil companies got together and decided to put themselves out of business since it can't possibly be free market supply and demand.

LOL !! Exactly !

Did somebody say they were evil?
It is funny to see so many jump to the defense of compaies when the prices skyrocket while profits are doing the same, yet tell us how any increase to min/low wage workers will break us all.

Not true. It is a way of life for farmers, transportation to get to jobs in my world if is nothing to travel 50 miles to get groceries. We travel long distances to get to medical facilities (200 t0 300 miles). Not all gas used is for the rich for pleasure Sir. That actually was not a intelligent statement. LOL

We all aren't as rich as you and can't walk across the street to get a loaf of beard.

That tells me that there is greater demand for gasoline than unskilled workers... Or there are more unskilled workers than there is demand for.

Mike

Its a good thing profits are rising.

Maybe you missed the news that in 2016 Chevron lost 497 million.

In 2016 Oxydental Petroleum lost 1.1 Billion......In 2015 they lost 8.1 Billion.

Conoco Phillips 2015 lost 3.8 billion; In 2016 they lost 3.5 billion; 2017 they lost 83 million.

Funny why they would manipulate the price of oil so they lose money. Must be some of that new math.

If you think they are making so much money why not buy some stock an get rich ? Because it's a lousy investment at this point and you will likely lose money....IMO

^ https://ycharts.com/companies/XOM/profit_margin

Exxon Mobile has many small oil company's with of course different names then Exxon Mobile. I used EM as an example only but I can tell you their small company's will show loses while EM shows gains.

Here is Chevron I believe you mentioned them also.
https://www.chevron.com/stories/chevron-reports-fourth-quarter-earnings-of-3-1-billion

Yep exxon ( XOM) made 8 cents for every dollar they invested in operations over the last 12 months. Apple made 21.55 cents for each dollar invested. Microsoft made 11.57 cents/dollar. Facebook made 40.5 cents/dollar.

I guess the hatred of the oil companies must be based on political ideology because it sure isn't based on economics.

A lot of the problem with the price of Gas is, federal and state and local takes. If these people didn't tax gas so much, there would be more room for oil companies to make a profit. No telling how much tax an oil company has got to pay on a barrel of oil. Taxes are ruining this and lots of other business profits.

I'm not sure it is hate bad choice of words. Bottom line they aren't going broke like they want YOU to believe. Have you had a chance to look at the link for Chevron I posted?

Yes I did. Maybe I missed it but I don't see anything extraordinary about that press release. Is there something not right about it ?

Many of apple's, microsofts, and face books products could be considered luxuries. For most of us fuel is not.
And I agree with the posts that point out the taxes on fuel are too high.

I agree many of those items could be luxuries....still...every school kid older than 5 seems to need an Iphone.

I have a hard time sympathizing when folks complain about paying $3 a gallon or more. I wish I could pay that much...but I also recognize it's my choice and I could reduce my fuel costs by living elsewhere.

But you're right that increases in energy costs are a tax on the economy.

Well maybe not but they are making some profits and doing pretty good.
https://www.chevron.com/stories/chevron-reports-fourth-quarter-earnings-of-3-1-billion

As far as taxes go I have worked in the oil industry from the inside and have seen how they run. I'm not an expert but I have a very fair opinion of there business. I can tell you that one State has given back billions upon billions of dollars back to oil companies because of low prices and the State is so afraid of the those companies will leave their State. Taxes and fines that should of been collected were regarded as nothing has happened and forgiven.

On the other hand there have also been some HUGE scams by foreign governments trying to extort money from the oil companies. Especially Chevron in South America.

I know 9.2 billion dollars sounds like a lot. But it's a drop in the bucket when you consider what it cost them to generate that number and how many people they have to share it with. If it went into the CEO's pocket I could see where it might be considered excessive. But that isn't the case.

Today you could have bought one share of Chevron for $122.19. That would allow you to share in those earnings of $1.64. That doesn't sound excessive to me. In fact it doesn't even sound like a reasonable return on your investment.

We have seen that similar situation on oil taxes here . But when a company, or an individual loses money, he pays no, or little tax because there is no income.

Nicely said White. It is good when we can attack the issue/topic and not attack each other. That being said when profits are high these companies find ways to spend that money including bonuses lining their own pockets and of course investing in many other ways. It is a slippery slimy business I can tell you that not saying it is good or bad but a lot of it is you rub my back I will rub yours. LOL I ain't saying anymore. LOL

One more thing I'm not trying to change anyone's mind or the way they see it I always enjoy see others opinions on these topic. I always have to chuckle when there is a serious topic started, there are some that don't want anyone to think different then how they see it. LOL Those people should never post or start a thread because we aren't going to think alike and that is a great thing. LOL

Trump calling BS that oil at the pumps are rising. Been a head liner for about a week now. OPEC rethinking suppy now.
https://www.cnbc.com/2018/05/25/oil-pric...utput-caps.html