Gas prices are going up fast

[REWahoo]

Higher gas prices = more gov't gas tax income.
Nice.

I don't think this is an accurate statement. Gas is taxed per gallon, not as a percentage, so higher gas prices would not increase tax income.

 

[Ronstar]

Higher gas prices = more gov't gas tax income.
Nice.

I suspect the opposite - at least in Illinois. Gas tax is a fixed amount per gallon. Higher gas prices will result in less gas consumption and therefore less gas tax revenue.

 

[NW-Bound]

Haven't bought gas since August of 2018.

And my electric bill was $24 last month.

When I visited my friend at his 2nd home in CA, he said the minimum electric charge in his town was $90. Included in that was some "free" kWhs, but of course he used much less than that when he was at his 1st home in Maryland.

At my metropolitan home, the minimum service charge is $20. No free kWh.

At my high-country boondocks home, the minimum service charge is $31. No free kWh.

 

[finnski1]

When I visited my friend at his 2nd home in CA, he said the minimum electric charge in his town was $90. Included in that was some "free" kWhs, but of course he used much less than that when he was at his 1st home in Maryland.

At my metropolitan home, the minimum service charge is $20. No free kWh.

At my high-country boondocks home, the minimum service charge is $31. No free kWh.

Yes and this is one of the reasons I kept talking myself out of home solar. We have a similar charge to be tied to the grid. Couple that with my location maybe getting 60-70 % of the energy I need and I can't justify it. My total annual electric bill for all of 2021 was just $865. So if I take 70% of that ($605) off it would be $260 +$25 *12=565.
There for I would only save about $300/year

 

[Midpack]

Get ready for higher highs...

https://abcnews.go.com/Politics/biden-announce-ban-russian-oil-imports-source/story?id=83315763

President Joe Biden will announce as early as Tuesday that the U.S. will ban imports of Russian oil, a source told ABC News Chief White House Correspondent Cecilia Vega.

The White House said Tuesday morning that Biden has added a 10:45 a.m. event to his schedule about "actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine" but did not reveal more.

About 8% of U.S. imports of crude oil and petroleum products came from Russia last year, according to preliminary U.S. government data; 3% of U.S. oil came from Russia.

White House officials also say the impact on Russia, which sent just 1% of its oil exports to the U.S. in 2020, would not be great -- especially when its oil and gas sector is already "de facto sanctioned" because of harsh restrictions on Russian banks.

 

[ExFlyBoy5]

I just paid $4.92 at a local Shell station today which was surprisingly cheaper than the other brands. The Circle K a few hundred yards away which is normally the cheapest in town was $5.29.
This time I filled the tank, normally I just put $20 in since I'm not driving that much these days.

The Shell may not be cheaper anymore.

https://www.reuters.com/business/energy/shell-withdraw-russian-oil-gas-2022-03-08/

 

[REWahoo]

I'm not sure how much impact a US ban on Russian oil will have on gas prices as we import very little. However, if the EU bans Russian oil, gas and diesel prices could hit levels we never imagined we would see.

 

[Zathras]

In my situation, my flat rate fees are also offset by my production.
On an annual basis, my utility cost is zero. There are 3 months in which I owe something, which are made up by the other months.
In Minnesota, solar is limited to 120% of annual use.

Solar rules and regulations can vary widely by state & utility. For anyone reading this, please check out your local regulations to see if it works well for you.

 

[MRG]

Saw a photo of a trucker filling up his rig yesterday, wasn't quite full only $999.99 because of pump limits. That was way back when diesel was only $4 a gallon.

 

[John Galt III]

Eastern Pa. Yesterday saw a sign for $4.49 a gallon. Guessing it will be $4.79 a gallon today. My conspiracy theory mentality tells me it's all greed. But of course I could be wrong, lol.

 

[NW-Bound]

Yes and this is one of the reasons I kept talking myself out of home solar. We have a similar charge to be tied to the grid...

I understand the minimum service charge at my two AZ homes. It's for maintenance of the grid, and you have to pay that amount even if the only load you have is a night light. And I also understand why it is higher at my boondocks home ($31) compared to the charge at my metro home ($20). The difference is due to the difference in the population density, and the harsh winter weather up in the boondocks creating a higher risk of power line damage.

My friend in CA explained to me that his minimum charge of $90 which includes some "free" kWhs was intended to subsidize people who live in smaller dwellings. In fact, once you use up the "free" kWhs, what you pay per kWh will go up progressively in different tiers. If you use 2x, you may pay 4x.

The very high rate in the top tier is what makes people go for residential solar in these places.

When it comes to home solar systems, whether it makes sense or not depends heavily on the local rate structure and your consumption. Definitely, YMMV.

 

[Chuckanut]

Eastern Pa. Yesterday saw a sign for $4.49 a gallon. Guessing it will be $4.79 a gallon today. My conspiracy theory mentality tells me it's all greed. But of course I could be wrong, lol.

And yet, I remember a few years ago when a gallon of regular almost broke through to under $2 a gallon. Was that a conspiracy also? I don't think so.

What doesn't go down is taxes and government fees. My state has a surplus of about 12 Billion dollars. A 1¢ decrease in the state sales tax was rejected. Instead, they are now trying to find a way to institute an income tax for the first time.

 

[statsman]

Organized my errand run today for three stores, minimal driving. Along the way, I noted most of the gas stations were at $3.79 (or higher) for regular here in Central Texas. Compared to most on this thread, that seems like a bargain.

I left Walmart and noticed their gas station was signed at $3.69. I thought this was a mistake, but decided to top off the tank since I was right there. That was the price at the pump. I quickly fueled up before they figured out they were priced at least $0.10 cheaper than everyone else.

 

[NW-Bound]

Eastern Pa. Yesterday saw a sign for $4.49 a gallon. Guessing it will be $4.79 a gallon today. My conspiracy theory mentality tells me it's all greed. But of course I could be wrong, lol.

When supply is insufficient to meet demand, there has to be a way to reduce demand.

In a free-economy market, this is done via higher prices. It costs more, to make people use less.

The only other way to do it is via rationing. Everybody gets a coupon for 5 gallons, or something like that. Hmmm... Maybe only people who own a car. Do we allow a couple to have 2 cars? Or somehow, we can decide that Joan deserves 10 gal while John only gets 2 gal, because Joan drives into downtown to work, while John is a home-daddy.

I don't know if anyone could devise a rationing scheme that works out.

And yet, I remember a few years ago when a gallon of regular almost broke through to under $2 a gallon. Was that a conspiracy also? I don't think so...

I do remember in about 2014 or so, gasoline was down in the $1.xx . I told my wife this was insane, gasoline cost less than some bottled water.


.

 

[ExFlyBoy5]

Organized my errand run today for three stores, minimal driving. Along the way, I noted most of the gas stations were at $3.79 (or higher) for regular here in Central Texas. Compared to most on this thread, that seems like a bargain.

I left Walmart and noticed their gas station was signed at $3.69. I thought this was a mistake, but decided to top off the tank since I was right there. That was the price at the pump. I quickly fueled up before they figured out they were priced at least $0.10 cheaper than everyone else.

Gas Buddy shows our gas is around $3.69 as well. Being an oil state, we tend to have some of the cheapest gas in the country.

 

[Aerides]

Long lines at Costco (s. fla) this morning, usually it's quite dead around 10am. Regular was $3.99 and Premium $4.55

 

[statsman]

I do remember in about 2014 or so, gasoline was down in the $1.xx . I told my wife this was insane, gasoline cost less than some bottled water.

We had just moved to Central Texas in late 2018, and soon afterward (maybe early 2019) a local Chevron had gas at $1.71. Being the cruel person I am, I snapped a picture of their sign and sent it to my BIL back in California.

Soon after the start of the COVID-19 lockdowns in 2020, gas got down into the $1.4x range.

 

[NW-Bound]

We had just moved to Central Texas in late 2018, and soon afterward (maybe early 2019) a local Chevron had gas at $1.71. Being the cruel person I am, I snapped a picture of their sign and sent it to my BIL back in California.

Soon after the start of the COVID-19 lockdowns in 2020, gas got down into the $1.4x range.

Other than the lack of demand during Covid, the other earlier episode of low gas price was in early 2015.

The reason I could bracket that time period was that I definitely remember paying up to $4/gal in our RV trip to the Canadian Maritimes in late 2014. Gas prices were coming down as I was on the return leg of this 10,000-mile trip. I even took some photos of the price signage when prices got below $3.50. I remember telling my wife, darn that was cheap.

The price continued to drop after my trip, down to the $1.xx. And we also talked about it on this forum. I expressed a concern that if demand destruction was the cause, it would not be good for the economy. Perhaps it was because of oversupply. Darn, my memory is not as good as it should be, as to what caused the price drop.

Anyway, I never regretted the high cost of gasoline in that 10,000-mi RV trip. A travel lover has got to grab a chance when he has it. Life is short.

 

[ExFlyBoy5]

Long lines at Costco (s. fla) this morning, usually it's quite dead around 10am. Regular was $3.99 and Premium $4.55

I was just telling my DW that the sheeple will see all the madness on the news and will go fill up their tanks (that are already 3/4 full) thus creating a surge in demand that will push up prices yet even more. I have to drop off one of our dogs @ the vet this afternoon so I am curious to see how busy the stations will be.

 

[38Chevy454]

I was just telling my DW that the sheeple will see all the madness on the news and will go fill up their tanks (that are already 3/4 full) thus creating a surge in demand that will push up prices yet even more. I have to drop off one of our dogs @ the vet this afternoon so I am curious to see how busy the stations will be.

Agree, panic buying makes the problem worse.

 

[Music Lover]

I do remember in about 2014 or so, gasoline was down in the $1.xx . I told my wife this was insane, gasoline cost less than some bottled water.

The fact that some people will pay a lot of money for bottled water is proof that marketing campaigns really do work.

I apply that same reasoning to the current gas prices...if people think high gas prices are because of Ukraine instead of intentional and deliberate policy decisions then they've fallen for another marketing campaign.

 

[Aerides]

I was just telling my DW that the sheeple will see all the madness on the news and will go fill up their tanks (that are already 3/4 full) thus creating a surge in demand that will push up prices yet even more. I have to drop off one of our dogs @ the vet this afternoon so I am curious to see how busy the stations will be.

Oh yeah, the line to costco neared "pre-hurricane" length.

 

[kgtest]

Costco lines were longer than normal the past week. I can't recall how much per gallon it went up, I just pay for it knowing its cheapest at CostCo. I did see it was over $121/barrel of crude yesterday and remember a couple months ago it was at $80 which means crude has gone up over 50% in short order. Everyone will be raising prices to combat this. I know guys in the trades that are really complaining but in reality just passing on the price increase to their customers.

 

[mystang52]

DW and I decided to spend a week in Fort Lauderdale in June. Sunday we checked air fare (first class), and it was quite high but in the range I anticipated. We had to check on some other things before committing, so paid the $19 fee to lock in the fare for 3 days. Two days later, we have just booked at that locked fare; had we not done so, it would have been an extra $350.

 

[Koolau]

Eastern Pa. Yesterday saw a sign for $4.49 a gallon. Guessing it will be $4.79 a gallon today. My conspiracy theory mentality tells me it's all greed. But of course I could be wrong, lol.

Be sure to buy the stock of the oil companies you find "gauging." Any company who can set their own prices with impunity is a company I want to own. Of course, no one will shed a tear for those same companies if prices drop to $2 in 6 months. YMMV