The ripple effect of prices at the pump

[NNN0LHI]

http://www.csmonitor.com/2004/0326/p03s01-usec.html

Higher gas prices could put a drag on the recovery.

By Alexandra Marks | Staff writer of The Christian Science Monitor

NEW YORK – Hold on to your wallets.

Those record gasoline prices are expected to climb even higher just as the summer driving season gets under way.

The problem is tight supplies - a product in part of the war in Iraq - combined with increased demand as a result of economic recovery in the US and Asia. Add to that mix OPEC threats to tamp down its spigot, and oil experts predict that prices at the pump this summer will run from the current record high of $1.74 a gallon to $2 a gallon.

That said, no one thinks the price spike will prompt families to sit home in the summer heat or suddenly switch to solar energy, although some may choose a cabin in the woods closer to home.

Yet some economists are predicting an uptick in the cost of consumer goods from shoes to strawberries, as truckers' pricey trips to the pump are passed on to retailers and then on to you. Indeed, some believe gasoline prices are already putting a drag on the so-called jobless recovery. Come Memorial Day, they predict gas costs could put a damper on consumer spending, slowing the pace of recovery even further.

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[Kimber Scott]

1. This is all a ploy

They're going to squeeze us until we beg them to drill in the Alaskan Wilderness.

[brainshrub]

2. The Alaskan wilderness is doomed

Eventualy Peak Oil will force us to drill. It'sonly a matter of time.

[Kimber Scott]

10. Well it will be sooner that we think, if their game works.

Bush Chided for Oil Prices
By Patrice Hill
The Washington Times

Wednesday 24 March 2004
-snip-

Mr. Abraham countered that a study by the independent Energy Information Administration found that the price effect of the government's oil diversion is "negligible."

Sen. Jeff Sessions, Alabama Republican, said Democrats complaining about high gas prices should stop blocking drilling in the Arctic National Wildlife Refuge and other domestic reserves.

"The Alaska reserves, which are substantial, ought to be brought on line," he said. The House has passed energy legislation authorizing drilling in the Alaskan reserve, but the Senate has not.

President Bush repeated his call yesterday for Congress to complete action on the energy legislation."


http://www.washtimes.com/business/20040324-121402-7035r.htm

[DAGDA56]

3. I don't get it...

...this kind of thing really shouldn't be happening under what you would think was an öil friendly" administration, should it?...does that mean I have to change my sign to "No Blood for No Oil"? I guess profit for oil companies rule...even if it means killing other parts of the economy.

[Fovea]

11. exactly

Cheney is hiding the fact that there is an economic warfare component.
Kill the Blue industries.... You know, trial lawyers, the media, IT...

[Moondog]

14. This is precisely the kind of thing

that happens under an oil friendly administration. Profits are up on each and every barrel, at each and every stage in the entire process - production, refining, wholesale and retail. The _only_ thing that is making those pirates nervous at the moment is the advent of hybrid powered (like the Prius) Stupid Useless Vehicles - Toyota is due to ship a hybrid SUV (Highlander I think) soon, which supposedly has something like a 15% fuel economy advantage over the "normal" version of the same vehicle. While 15% doesn't look like much to me, and probably you either, to the oil companies, that is huge because it comes right out of the bottom line. Couldn't happen to a nicer bunch of crooks, if you ask me . . . .

[newyawker99]

15. Hi Moondog!!

Welcome to DU!! :toast:

[Paulie]

4. By my house

in a southwest Chicago suburb, the Gas City went from 1.99 for premium to 2.15. They usually price a dime a grade difference. That was since I filled the car on sunday. WOW

[Indiana_Dem]

5. At my regular Speedway station the gas has been a

consistent 1.68 for almost a month or more. Today it shot up to 1.75!!! I've been trying to keep my tank filled before it goes up. Darn--I got caught with one vehicle only 3/4 full!! This is in central Indiana.

[mitchtv]

6. add about 25 cents t that for premium in CA

at least here in PSprings

[Barkley]

9. Moble regular is $2.19 in Pasadena

California prices will may go even higher than expected when refineries shift to summer blend fuel this spring.

If the price level (CPI) does rise as a result of higher fuel prices, the Fed might be forced to raise interest rates, which could have a dramatic effect on the housing market in SoCal.

[Snow]

7. I was checking out the car sales site that my credit union links to,

wanting to look at miatas and insights. No miata, one insight, pages & pages of big SUV's, pickups, little SUV's - gas guzzlers are for sale here in LA.

[DAGDA56]

8. I bought a '97 miata...

...at the time I just wanted a convertible...the 30 MPG has become an unexpected bonus...I have 70k miles and just replaced the clutch last week...the only major work done on it.

[leesa]

12. There IS no recovery. This is drilling in Alaska BS.

Get used to it folks, we are running out of oil. You will probably never see gas prices come down. They have been artificially maintained at a low rate for decades, but they can't do it anymore. Why the hell do you think we are trying to take over Iraq and Afganistan?

[revcarol]

13. Grocery price increases are already there.

Truckers being hit big-time. Those who don't have fuel-increase clauses in their contracts are going out of business. And this in a country that has let or encouraged rail transportation to deteriorate.

When the full impact of these price increases hits, there will be no recovery. Already stressed budgets that have to buy fuel to get to work and groceries to eat will just spend the minimum on everything else.

We've got to get off this oil teat!!

[Sentath]

16. The Perfect Storm That's About to Hit

http://www.commondreams.org/views04/0324-06.htm

This could probably have its own thread in E&OA. But, I'll use it as a kicker here..

{rlg}

[JetCityLiberal]

17. Energy prices drive our economy

It is hard to find any part of our economy that is not effected by the price of energy. Why is b*sh still stock piling oil in the Strategic Reserve while the price of oil is at a all time record high?

Would it be because his already rich cronies want even more money?

If we can reduce your own gasoline or other energy consumption by only 5-10% we could not only save ourselves some money, but we can help slow the ridiculously rapid increase in energy prices.

Will your employer let you telecommute one day every two weeks?

Can you combine trips out in your car or other vehicle to reduce your consumption? Every time you start your mode of transportation do you ask 'do I really need to do it this way?'

It is not only the mileage our vehicles gets, but it is also how many miles we drive them. It also helps if you can drive in non-rush hour times. When I am stopped in traffic my car gets zero miles to the gallon.

The quickest fix is to vote b*sh and the whole right wing out of office at all levels!

JetCityLiberal :hi: