Gasoline prices adjusted for CPI

[Nords]

Looks like refinery demand is pushing prices up to levels not seen in over 25 years.
Of course that depends on your perception of the relevance & accuracy of CPI data...

I don't know if it's any good after today, but here's the link:
http://www.chartoftheday.com/20070504.htm?T

[mb]

Quote:

Originally Posted by Nords Looks like refinery demand is pushing prices up to levels not seen in over 25 years. Of course that depends on your perception of the relevance & accuracy of CPI data... I don't know if it's any good after today, but here's the link: http://www.chartoftheday.com/20070504.htm?T

Or we are paying no more for gas in real terms than we were 27 years ago and in the intervening years it has been even less expensive.

If as some people believe that CPI understates actual inflation then today's real price is actually less.

MB

[Brat]

Why choose 1981? Roll it back a little further, 1960 would be my choice..

[mb]

Yeh, I suspect that comparing it to 1960 would make it look pretty expensive today but since I support a European type gas tax I put my own spin on the data in the chart

MB

[SecondCor521]

I thought the absolute high was in 73-74 during the OPEC crisis?

2Cor521

[dumpster56]

Quote:

Originally Posted by SecondCor521 I thought the absolute high was in 73-74 during the OPEC crisis? 2Cor521

I would expect to see shortages this summer. Prices near 4 dollars a gallon.

It is only the beginning. It will get very ugly.

Refinery utilization is only 88%, draw downs have been huge and we are not in the driving season yet.

Then one badly placed hurricane and gasoline lines and a recession will be here.

[TromboneAl]

In the long run, nothing could be better than high gas prices. Make alternative energy and conservation worthwhile sooner.

[Mwsinron]

I think the economy is doing a great job absorbing energy costs. Funny people must not mind the prices the demand keeps going up.

[dumpster56]

Quote:

Originally Posted by Mwsinron I think the economy is doing a great job absorbing energy costs. Funny people must not mind the prices the demand keeps going up.

Have you flown lately? People that once flew a 500 mile trip are now driving.

There are so many SUVs that get well $hit mileage no wonder demand is increasing. PLUS there are well MORE people in the states. Last I looked we went over 300 million! Back in the 70s we had 230 million americans and the same amount of gasoline refineries!! AS we have today. We have no leadership. All we have are politicians who were the jerks we all hated in High School!

[Mwsinron]

My point is DEMAND is still going up. People are not driving any less, flying any less etc. They are still consuming. Until they reverse that oil companies will get whatever premium they want. I wouldn't bother blaming today's leadership. Might as well look at the prior generations who lacked the foresight to develop alternative energy.

As for the SUV's consumption. A congressman from CA (the name slips me) is proposing a tax increase for SUV's when you purchase them because of their lousy fuel economy.

[samclem]

Quote:

Originally Posted by Mwsinron As for the SUV's consumption. A congressman from CA (the name slips me) is proposing a tax increase for SUV's when you purchase them because of their lousy fuel economy.

An SUV is somehow more wasteful than a heavy luxury car? Or a 3/4 ton pickup truck that has something in the bed once a month?
If, for some reason, the govt wants to artificially influence the laws of supply and demand concerning fuel use, then just tax the fuel directly at a higher rate. Of course, folks who buy little cars because they can't afford the higher gas prices will die at a higher rate in car accidents.

Govt can monkey around with the laws of supply and demand, but not with the laws of physics--F is still gonna = MA.

[bssc]

Higher prices are just a sign that the markets are working. All those low MPG vehicles generate higher demand which drives prices up. Higher prices make it more cost effective to fight the lawsuits and build more refineries, driving prices back down. It also make other methods of getting oil (e.g., oil shale) economically profitable. Finally, it makes spending a couple of thousand more on a hybrid more cost efficient. Of course, since I own a more than a few oil company stocks, I am biased.

[Nords]

After discussing this with my spouse, I think the fact that gas prices are returning to an inflation-adjusted high is just another symptom of a depreciating dollar-- not much different than gold or any other natural resource. Priced any copper or plywood lately?

Quote:

Originally Posted by bssc Higher prices are just a sign that the markets are working.

Ever watch PBS' "Globetrekker"?

Whenver the hosts visit the U.S., they can't get over how cheap the gasoline is compared to just about anywhere on the entire European continent.

[dumpster56]

Quote:

Originally Posted by Nords After discussing this with my spouse, I think the fact that gas prices are returning to an inflation-adjusted high is just another symptom of a depreciating dollar-- not much different than gold or any other natural resource. Priced any copper or plywood lately? Ever watch PBS' "Globetrekker"? Whenver the hosts visit the U.S., they can't get over how cheap the gasoline is compared to just about anywhere on the entire European continent.

Sure gasoline is more expensive everyplace else than america, but everyplace else has Diesel vehicles that get over 40mpg or small fuel efficient cars. They all have passenger rail service that makes what we have in america look like third world railroads.

So I am tired of hearing that comment. Bottom line, we have no real leadership, we have no energy policy and quite frankly we are on Hurricane disaster away from big time gasoline shortages because None of the oil companies are planning any new refineries.

[Brat]

You think you are in a squeeze, just travel in the west!!!

[audreyh1]

What I find incredible is the extreme volatility that appears to have started in 2005.

Audrey

[kcowan]

Quote:

Originally Posted by newguy888 Sure gasoline is more expensive everyplace else than america, but everyplace else has Diesel vehicles that get over 40mpg or small fuel efficient cars. They all have passenger rail service that makes what we have in america look like third world railroads...

Are you sure that you are properly attributing cause and effect? Efficient cars and rail lines need customers. The market will drive behaviour.

Here is a tale of three cities that illustrates how different cities evolve when their gas prices are different. Vanouver is C$1.26/litre (or US$4.54/gal for those still using the imperial system). And we have the same car choices and rail choices as you do.

Litres/person/week - BC/WA/OR
Gasoline - 19.3/29.7/29.9
Diesel - 6.1/7.6/11.4
Power - 21/27.3/26 in KWH/day
BTUs - 41.3/57.9/61.4 converted from above totals/person/week

(from the same article - sorry no link yet)