Amen, well said
Well, AAA finally caught up.
AAA: Spring gas prices could approach a 'tipping point' for drivers
Trent Gillies
If it seems to be costing you more cash to fill up your tank these days, you're right.
"We've gotten accustomed to cheaper gasoline over the past couple years," Robert Sinclair, AAA Northeast Manager of Media Relations told CNBC's On The Money in a recent interview.
According to AAA, the average cost of a gallon of unleaded regular is about 25 cents more than this time last year.
With fewer miles driven, and less demand during the cold winter months, winter gas prices are usually lower. Why the price spike now?
"We're still riding the wave, if you will, as a result of Hurricane Harvey, where gasoline prices jumped up afterwards," Sinclair said.
After that natural disaster, prices never really returned to pre-hurricane rates.
"Back when the hurricane hit on August 25, oil was $47 a barrel," he said. "We hit $66 a barrel in January and we're down around $60 to $61 dollars now."
On Friday, the AAA national average price per gallon of regular unleaded was $2.53, but the association forecasts the national average price will increase to as much as $2.70 per gallon this spring.
Sinclair attributes the higher prices to a combination of factors including "the effects of the production cutbacks by OPEC and non-OPEC foreign producers finally kicked in, not to mention speculative money going into crude oil futures."
With cheaper gas the past few years, buyers have been choosing bigger vehicles.
According to Ward Auto, in 2016, 62 percent of U.S. vehicle sales were trucks, which includes pickups, SUVs and crossovers. Cars were the remaining 38 percent of the total. Back in 2012 it was nearly even. Trucks were 51 percent of sales, and 49 percent were cars.
"Right now, there's a lot of big, heavy, thirsty vehicles out there on the road." Sinclair said. "That's going to play into ... whether or not they'll be able to gas those things up."
A new AAA survey asked consumers if there was a gas price point that would make them "change their driving habits or lifestyle to offset higher gas prices."
"We found $2.75 was the tipping point for about 20 percent of drivers," Sinclair said. "For 40 percent, it was $3 a gallon."
"And we're there, we're at that level in a lot of cities, a lot of metropolitan areas around the country," he said.
AAA: Spring gas prices could approach a 'tipping point' for drivers
Trent Gillies
If it seems to be costing you more cash to fill up your tank these days, you're right.
"We've gotten accustomed to cheaper gasoline over the past couple years," Robert Sinclair, AAA Northeast Manager of Media Relations told CNBC's On The Money in a recent interview.
According to AAA, the average cost of a gallon of unleaded regular is about 25 cents more than this time last year.
With fewer miles driven, and less demand during the cold winter months, winter gas prices are usually lower. Why the price spike now?
"We're still riding the wave, if you will, as a result of Hurricane Harvey, where gasoline prices jumped up afterwards," Sinclair said.
After that natural disaster, prices never really returned to pre-hurricane rates.
"Back when the hurricane hit on August 25, oil was $47 a barrel," he said. "We hit $66 a barrel in January and we're down around $60 to $61 dollars now."
On Friday, the AAA national average price per gallon of regular unleaded was $2.53, but the association forecasts the national average price will increase to as much as $2.70 per gallon this spring.
Sinclair attributes the higher prices to a combination of factors including "the effects of the production cutbacks by OPEC and non-OPEC foreign producers finally kicked in, not to mention speculative money going into crude oil futures."
With cheaper gas the past few years, buyers have been choosing bigger vehicles.
According to Ward Auto, in 2016, 62 percent of U.S. vehicle sales were trucks, which includes pickups, SUVs and crossovers. Cars were the remaining 38 percent of the total. Back in 2012 it was nearly even. Trucks were 51 percent of sales, and 49 percent were cars.
"Right now, there's a lot of big, heavy, thirsty vehicles out there on the road." Sinclair said. "That's going to play into ... whether or not they'll be able to gas those things up."
A new AAA survey asked consumers if there was a gas price point that would make them "change their driving habits or lifestyle to offset higher gas prices."
"We found $2.75 was the tipping point for about 20 percent of drivers," Sinclair said. "For 40 percent, it was $3 a gallon."
"And we're there, we're at that level in a lot of cities, a lot of metropolitan areas around the country," he said.
I thought OPEC controlled oil prices for the most part. When they were high, and we were drilling like crazy in the US, they basically shut us down by flooding the market with cheap crude.
Our oil cost more to produce in the shale regions and is seasonal in the north when the ground thaws and equipment can't travel over the tundra.
Our oil cost more to produce in the shale regions and is seasonal in the north when the ground thaws and equipment can't travel over the tundra.
Eh - Like SlugSlinger said, you're still paying for that alcohol via subsidies. There is no bargain there! And as you said, the consequences do add up!
Woody
Oil futures are one of the bigger factors when looking at the price of crude oil. If OPEC flooded the market, then futures went down, but if they held back, prices rose. Plus, since Middle East crude is "sweeter," it draws a bunch of companies wanting to buy it to refine, so there are a couple of factors where the Middle East crude affects prices.
It did go up.
When I was a kid I couldn't afford .18 cents per gallon but today I can afford $2.50. The difference is there aren't any girls my age I'd want to chase. That is a real problem with inflation-associated with haircuts .50 cents then and now $10.00 plus and I don't have as much hair to cut. That seems unfair somehow.
Free!! Really? Until some one figures out how to make power from nothing that is a pipe dream!!
Ford is going to regret getting rid of all their fuel efficient cars.
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