GasBuddy Blog

Message Forum - Read Message

Category: GasBuddy Official Blog > Topics	Add to favorite topics Post New Topic

Author	Topic: Why is gas so much higher now than last time oil was at $X??	Topic is locked Back to Topics

PD Moderator	Message Posted: Oct 28, 2011 10:39:27 AM Ignore PD Report Abuse Gasoline prices were much lower last time oil was $X, what gives? I receive dozens of e-mails with people asking "why are gasoline prices so much higher than they were when oil was last at the same price they are today?". First of all, you all obviously know the price of oil, because you're asking why gasoline prices are higher today when oil is nearly the same price. Did you know that while there are literally dozens of types of crude oil, the media and papers for the most part only post one type of oil? That oil, called West Texas Intermediate (WTI), is suffering from identity issues. Let's just say that WTI oil is landlocked, and not available to global markets, meaning its not being subjected to the global economy, and thus a... Visit GasBuddy Blog for full article

Moderator

Message Posted: Oct 28, 2011 10:39:27 AM

Ignore PD Report Abuse

Gasoline prices were much lower last time oil was $X, what gives?

I receive dozens of e-mails with people asking "why are gasoline prices so much higher than they were when oil was last at the same price they are today?". First of all, you all obviously know the price of oil, because you're asking why gasoline prices are higher today when oil is nearly the same price. Did you know that while there are literally dozens of types of crude oil, the media and papers for the most part only post one type of oil? That oil, called West Texas Intermediate (WTI), is suffering from identity issues. Let's just say that WTI oil is landlocked, and not available to global markets, meaning its not being subjected to the global economy, and thus a...

Visit GasBuddy Blog for full article

REPLIES (newest first)Ignore Short Messages

First

Next Last

Mattjohnston24 Rookie Author Michigan Posts:1 Points:120 Joined:Nov 2011	Message Posted: Nov 7, 2011 5:01:42 PM Ignore Mattjohnston24 Report Abuse Ok the problem is that there is to much demand and too little oil. The whole world is going after oil. when the economy starts to get better more oil is getting used and the demand goes way up. then once gas prices get to high lets say alittle above $4 a gallon consumers cut back on buying things and the economy crashes causing the demand for oil to go down and then gas prices go down. this is a never ending cycle. If the United States keep relying on oil our economy will never be able to recover because of this cycle. The USA needs to get our own supply of green technology fules. But it cant be just one thing. lots of people want our cars to run on electricity. but i dont believe that is the way to go. we need multiple things out there like E85, electricity, bio diesle, and other things. and it needs to be made here in the united states by honest hard working people that wont want to raise the prices up high. if we can do that then our economy should be able to recover and we will be on top again because we will have cheeper fule than the rest of the world.... Problem solved.
MAZmobile Champion Author Baltimore Posts:1,629 Points:476,800 Joined:Oct 2011	Message Posted: Nov 6, 2011 5:51:22 PM Ignore MAZmobile Report Abuse Its all about the money!
TeacherSteve Rookie Author Oakland Posts:35 Points:396,840 Joined:Sep 2011	Message Posted: Nov 5, 2011 3:15:44 AM Ignore TeacherSteve Report Abuse Makes sense.
clpassenubye Champion Author Los Angeles Posts:3,359 Points:752,605 Joined:Mar 2011	Message Posted: Nov 2, 2011 1:01:54 PM Ignore clpassenubye Report Abuse Greed plain and simple
fsufan11 Veteran Author Jacksonville Posts:339 Points:149,780 Joined:Jun 2011	Message Posted: Nov 1, 2011 2:42:30 PM Ignore fsufan11 Report Abuse I keep hearing that the oil companies have "expensive gas" to sell, because the prices have been high for so long. Another excuse for them to make more money from us...
KAR120CSII Champion Author Oregon Posts:3,172 Points:620,345 Joined:Apr 2010	Message Posted: Oct 31, 2011 7:53:00 PM Ignore KAR120CSII Report Abuse Do you really have to ask? No competition, lots of spoils to go around. Time for some good old Roosevelt Republicanism -- bust the trusts.
Paularu Sophomore Author Michigan Posts:232 Points:230,690 Joined:Jun 2011	Message Posted: Oct 31, 2011 3:49:02 PM Ignore Paularu Report Abuse Bottom line is greed!!
packards42 Champion Author Washington Posts:6,442 Points:1,127,615 Joined:Feb 2005	Message Posted: Oct 30, 2011 1:32:54 PM Ignore packards42 Report Abuse I knew the west coast pay a premium for crudes, i did not the east coast was screwed too> Chart sucks, as the OPEC nation become accustom to $100 crudes, the change of retreat become less and less daily.
WalRus49 Champion Author Boston Posts:4,070 Points:867,890 Joined:Nov 2010	Message Posted: Oct 30, 2011 12:10:45 AM Ignore WalRus49 Report Abuse More organized mayhem and pillage.....
Houmagas Veteran Author Louisiana Posts:401 Points:105,385 Joined:Jun 2011	Message Posted: Oct 29, 2011 7:30:50 PM Ignore Houmagas Report Abuse Speculation, Speculation, Speculation
KAR120CSII Champion Author Oregon Posts:3,172 Points:620,345 Joined:Apr 2010	Message Posted: Oct 29, 2011 5:57:06 PM Ignore KAR120CSII Report Abuse Always excuses for high gas prices. And the economy and earnings of the middle and working classes goes down.
roadrunnin Champion Author Richmond Posts:1,749 Points:564,160 Joined:May 2008	Message Posted: Oct 29, 2011 2:53:30 PM Ignore roadrunnin Report Abuse Basically we just need to get used to paying higher fuel costs.
djliberty All-Star Author Chicago Posts:966 Points:317,310 Joined:Mar 2008	Message Posted: Oct 29, 2011 2:21:15 PM Ignore djliberty Report Abuse inflation, gas taxes, increased demand for gas worldwide
gooberoobu Champion Author Kalamazoo Posts:4,053 Points:535,945 Joined:Oct 2011	Message Posted: Oct 29, 2011 12:44:28 PM Ignore gooberoobu Report Abuse Definitely greed [Edited by: gooberoobu at 10/29/2011 12:45:12 PM EST]
bettersight Champion Author Oakland Posts:1,116 Points:255,885 Joined:May 2011	Message Posted: Oct 29, 2011 12:36:15 PM Ignore bettersight Report Abuse ok
leraar2 Champion Author Massachusetts Posts:3,759 Points:786,705 Joined:Mar 2011	Message Posted: Oct 29, 2011 11:42:14 AM Ignore leraar2 Report Abuse GREED and SPECULATORS.
Luckylindy Champion Author Milwaukee Posts:4,509 Points:1,126,095 Joined:May 2008	Message Posted: Oct 29, 2011 10:40:40 AM Ignore Luckylindy Report Abuse Smoke and mirrors.
brbaritone Champion Author Virginia Posts:2,063 Points:1,696,960 Joined:Jan 2007	Message Posted: Oct 29, 2011 10:17:38 AM Ignore brbaritone Report Abuse I'm surprised and disappointed that PD focused almost exclusively on explaining the price of WTI, and ignored the fact that many refiners are shipping as much as 25% of their throughput overseas where the prices are higher. That limits supply over here, which allows them to charge higher prices.
blupupher Champion Author Houston Posts:3,545 Points:747,070 Joined:Feb 2011	Message Posted: Oct 29, 2011 9:46:23 AM Ignore blupupher Report Abuse but how do we get it lower
gs7101 Champion Author San Antonio Posts:5,518 Points:387,695 Joined:Jun 2009	Message Posted: Oct 29, 2011 9:25:08 AM Ignore gs7101 Report Abuse One word answer -- greed!
Cashless Champion Author Akron Posts:3,515 Points:733,330 Joined:Apr 2011	Message Posted: Oct 29, 2011 8:23:34 AM Ignore Cashless Report Abuse The root of all evil is to blame.
paulp24 Champion Author Harrisburg Posts:4,532 Points:821,350 Joined:Dec 2010	Message Posted: Oct 29, 2011 8:20:45 AM Ignore paulp24 Report Abuse hmmm
WalRus49 Champion Author Boston Posts:4,070 Points:867,890 Joined:Nov 2010	Message Posted: Oct 29, 2011 3:32:48 AM Ignore WalRus49 Report Abuse More organized mayhem and pillage.....
Ahking Champion Author Orange County Posts:3,502 Points:602,520 Joined:May 2011	Message Posted: Oct 29, 2011 1:07:23 AM Ignore Ahking Report Abuse There are always reasons.
packards42 Champion Author Washington Posts:6,442 Points:1,127,615 Joined:Feb 2005	Message Posted: Oct 29, 2011 12:48:15 AM Ignore packards42 Report Abuse Yes I noticed to that the refiner have raised prices, look at the recent earning report up some 44% for exionmobile
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Oct 29, 2011 12:15:29 AM Ignore tedjm1 Report Abuse Is this word play?
LanguageMan1 Champion Author Tampa Posts:11,718 Points:1,660,815 Joined:Apr 2008	Message Posted: Oct 29, 2011 12:12:11 AM Ignore LanguageMan1 Report Abuse The price of gas should not be as high as it is and has been, plain and simple.
PnnyPnchr Champion Author Toronto Posts:16,570 Points:2,588,720 Joined:Dec 2002	Message Posted: Oct 29, 2011 12:11:31 AM Ignore PnnyPnchr Report Abuse Thanks for the info and link to the price chart. I see the cheapest oil is Canada, Heavy Hardisty 22ºat 81.61. I suppose it also costs the most to refine. I also suppose other posters here have not digested this information or realize there are other costs beside the price of crude. The most expensive, light crude is the cheapest to refine, and that is becoming rarer. Tar sands are more expensive to refine.
amearly Champion Author Michigan Posts:12,114 Points:2,466,635 Joined:Jan 2006	Message Posted: Oct 29, 2011 12:10:28 AM Ignore amearly Report Abuse Because the governbment makes more by allowing the speculators to continue to manipulate the market.
regout Champion Author Quebec Posts:2,950 Points:831,730 Joined:May 2010	Message Posted: Oct 29, 2011 12:10:06 AM Ignore regout Report Abuse They are making so high gain...speculation...profit for the speculators.
minnesotagirl Champion Author Milwaukee Posts:5,858 Points:1,230,715 Joined:Oct 2009	Message Posted: Oct 29, 2011 12:09:47 AM Ignore minnesotagirl Report Abuse Greed and speculation - because they can...
jkpsr Champion Author New Jersey Posts:4,079 Points:1,101,905 Joined:Jun 2005	Message Posted: Oct 29, 2011 12:09:37 AM Ignore jkpsr Report Abuse Are you saying the WTI is artificially low? When pipe lines enable the US to export, will that mean a sharp increase in the prices?
MelB70 Champion Author Boston Posts:7,597 Points:1,322,450 Joined:Apr 2008	Message Posted: Oct 29, 2011 12:08:02 AM Ignore MelB70 Report Abuse Because they know they can screw us and there is nothing we can do about it.
jetskijerry Champion Author North Carolina Posts:3,891 Points:771,295 Joined:Mar 2011	Message Posted: Oct 29, 2011 12:07:57 AM Ignore jetskijerry Report Abuse Profit taking.
bullman68 All-Star Author St. Louis Posts:599 Points:366,285 Joined:May 2011	Message Posted: Oct 29, 2011 12:07:26 AM Ignore bullman68 Report Abuse Nice try, smells like BULL$H!! to me.
gooberoobu Champion Author Kalamazoo Posts:4,053 Points:535,945 Joined:Oct 2011	Message Posted: Oct 29, 2011 12:06:26 AM Ignore gooberoobu Report Abuse We have no choice but to pay it, and they know it.
fightbigoil71 Champion Author Milwaukee Posts:7,557 Points:1,544,680 Joined:Nov 2008	Message Posted: Oct 29, 2011 12:05:48 AM Ignore fightbigoil71 Report Abuse Speculation
Jumpmaster82 All-Star Author South Carolina Posts:920 Points:849,305 Joined:Nov 2008	Message Posted: Oct 29, 2011 12:05:24 AM Ignore Jumpmaster82 Report Abuse The government makes 4 times more per gallon of gas than an oil company, and the oil company takes the risk and does the work, yet you feel THEY are the bad guy? Our government are the crooks.
goldseeker Champion Author West Virginia Posts:19,537 Points:2,717,840 Joined:Sep 2005	Message Posted: Oct 29, 2011 12:03:01 AM Ignore goldseeker Report Abuse Screwed again.
steelers6 Champion Author Indiana Posts:5,444 Points:1,135,510 Joined:Jan 2010	Message Posted: Oct 29, 2011 12:02:38 AM Ignore steelers6 Report Abuse Greed
judgemobile Champion Author Ohio Posts:7,570 Points:2,445,135 Joined:Nov 2005	Message Posted: Oct 29, 2011 12:01:58 AM Ignore judgemobile Report Abuse the answer is quite simple: Speculation and GREED replace supply and demand.
bababooey2 Champion Author Hartford Posts:6,347 Points:1,301,865 Joined:Sep 2009	Message Posted: Oct 29, 2011 12:01:15 AM Ignore bababooey2 Report Abuse That is a good question.
Quick68 Champion Author Columbus Posts:8,218 Points:1,224,825 Joined:Dec 2009	Message Posted: Oct 29, 2011 12:01:06 AM Ignore Quick68 Report Abuse Corruption & Greed
OceansidePoms Champion Author Massachusetts Posts:1,680 Points:686,575 Joined:Nov 2008	Message Posted: Oct 28, 2011 11:57:03 PM Ignore OceansidePoms Report Abuse SO all in all & as always lately, in the end, its a scam of B.S! & Totally unfair to 99% of the U.S CITIZENS! The actual PEOPLE. I have driven around this State (MA) over 250 miles a day for the last 2 weeks straight & have seen Gas at tiny stations as low as $2.82 & as high as $4.19! ALL IN ONE STATE! & What do you think the station with the $4.19 was? A BIG EXXON/MOBIL owned "MOBIL" & the smaller? Low priced, only $2.82/Gal? A No-Name, Un-Branded "Prestige".... & the smaller company, Prestige with the almost $2 LESS per Gal price is in the middle of a POOR, Low Income, High Crime, Ghetto & bad area. & The high price- On Cape Cod, in a Wealthy, Low Crime, Expensive area! Typical right? But what I don't get is, why do you have- not only station for dollars per gallon More & Less- within minutes of both mentioned stations & both stations also have bad neighborhoods within 10-15 minutes as well! So how is a large portion of this not Gauging? There is not reason for the Gigantic price difference! Near Taunton, MA I just drove by a Shell with Regular in the Mid $3.70's & the Hess ACROSS THE STREET is $3.26/Gal!
mfeldstein Champion Author Ottawa Posts:8,171 Points:1,930,480 Joined:Feb 2007	Message Posted: Oct 28, 2011 11:54:47 PM Ignore mfeldstein Report Abuse In Ontario, it's mostly because provincial gas taxes increased 8% in the last year.
dlzastera Champion Author Minnesota Posts:4,505 Points:1,022,370 Joined:Mar 2006	Message Posted: Oct 28, 2011 11:54:36 PM Ignore dlzastera Report Abuse I wish I knew.
GLM4205 Champion Author Toledo Posts:4,052 Points:799,320 Joined:Dec 2010	Message Posted: Oct 28, 2011 11:50:25 PM Ignore GLM4205 Report Abuse Speculators! Join in the push to tax financial transactions! Discourage speculation.
HiGramma Champion Author Michigan Posts:1,815 Points:445,690 Joined:Oct 2008	Message Posted: Oct 28, 2011 11:47:35 PM Ignore HiGramma Report Abuse wonderful - it's halformation not information
jessek Champion Author Detroit Posts:2,657 Points:1,280,490 Joined:Sep 2008	Message Posted: Oct 28, 2011 11:46:19 PM Ignore jessek Report Abuse Just because...does anyone need a reason?
gatekeepertwo Veteran Author Wilmington Posts:389 Points:187,120 Joined:Mar 2011	Message Posted: Oct 28, 2011 11:40:16 PM Ignore gatekeepertwo Report Abuse All greed.