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What's The Excuse THIS Time?
Okay, it's happening again. I filled up my car last night and paid a teeth-swallowing three bucks a gallon. WHY? What is their excuse this time? What is the reason the gasoline companies are giving for this latest episode of price gouging? Did some misguided fool consider insulting the Muslim prophet again and bring the Middle East to the brink of war? (Oh, yeah, I forgot, the Middle East has been at war or on the verge of it since Christ was a corporal.) Or did some moronic speculator insinuate that gas prices MIGHT rise again next year, prompting gas stations to run out lickety-split and change their signs? I want to know why we are being gouged again. I am even more curious to know why no one seems to be balking at this but me. This is what seems to happen at regular intervals. The gas companies jack up the prices to some ludicrous number they know consumers will scream about. Then, when people start to believe that it will never get any better, the prices are dropped to something almost as painful but not quite as ridiculous. That's the public pacifier. The oil companies are still raking in cash manicured hand over bejeweled fist, but since they dropped the price a little, people think these magnanimous billionaires are doing them a favor. I remember the first time this happened, about ten years ago. Gas prices climbed to $1.99, and the public gasped in horror. Then it went up to an astronomical two-fifty a gallon. People everywhere were screaming "foul". And then the public pacifier; the prices went back down a bit. Suddenly two bucks a gallon felt like a lace had broken in our financial corsets, allowing us to breathe a bit. And that false fresh breath continued to hover over us for a while. The gas companies got their wish; they raised prices to two dollars a gallon, and no one complained anymore. When the gas prices flew up to four-fifty a gallon last year, I knew this would happen. Eventually, the price would drop to three bucks or so, and since it's not four dollars anymore, the public is duly quelled and appropriately grateful to those wonderful billionaire oil barons again. Well, I'm not fooled. I am SICK AND TIRED of shelling out ridiculous amounts of money for gasoline just so some fat-cat CEO can buy a million-dollar bling for his latest girlfriend. I'd rather use my money for something frivolous for me or my family...say, electricity or water, for instance, which aren't getting any cheaper, either. Refuse to be pacified. Three dollars a gallon is NOT a reasonable price, especially since everyone else in the lower forty-eight pays fifty cents a gallon less. But that is another gripe. 41 comments from 18 users
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posted by
antiextremism
on Sep 9, 2009 at 03:39 PM
Just be glad you don't live in Europe. You'd be paying three times as much. posted by
ghostriter
on Sep 9, 2009 at 03:47 PM
Yeah, I keep hearing that. And my reply is, at least, if I lived in Europe, I would have decent public transportation to use, and my car would not be such a neccessity. posted by
ProgressivePete2
on Sep 9, 2009 at 04:06 PM
Bravo ghostriter. I totally agree. We're getting gouged simply because they can. What can we to do about it besides drive less? Not much. posted by
msjenny
on Sep 9, 2009 at 04:14 PM
I filled my car up and paid 3.15 for it, In texas is 2.50 boy was I happy when I was traveling there. I don't understand why it has to be higher. posted by
hpver
on Sep 9, 2009 at 04:14 PM
Avarice and the pursuit of wealth and power at others' expense are nothing new, so I can't say I'm really surprised. The price will likely continue to rise over the long term because it's a pretty good bet that we are on the downside of peak oil and demand will continue to outpace supply globally. Walk, ride a bike, or take public transport, if you can. Carpooling can also work. I do two of these and I know it's not easy. Much of the world, and some of California, does public transit better than Bako. posted by
NancyII
on Sep 9, 2009 at 04:20 PM
I know it seems pointless but I buy very little gas at a time. I rarely fill up unless I"m going out of town and generally put a 20 in at a time. There are days when I don't leave the house so my gas consumption is zero, the way I like it. I parked my car Saturday afternoon and didn't drive it again til Tuesday morning when I went to work. My theory is that if I stop filling up I'm less likely to drive just for the heck of it. When I leave work I look at the gauge and think "hmm..I can get another round trip out of this" whereas if it was full I might just go cruisin". Sorry gasoline companies, you forced me to it. I was told that debit cards acted just like cash so that's what I've been using. The other day, being a skinflint, I only put ten bucks in and requested a receipt. Surprise! There was a 35 cent fee tacked onto my bill. Soooo if I'd have filled up, the extra cost wouldn't have been spread out over 15 gallons or so but...since I only got about 3 gallons, I paid 10 cents a gallon more more for it than if I'd walked inside and handed them a ten spot. I am sooo clever and such a good money saver. Lesson learned..no more debit card gas purchases. edited..it was a Fastrip. With cash I use AMPM posted by
ronmexico
on Sep 9, 2009 at 04:28 PM
Wait till crap and trade gets passed. Then you will get to pay even more for spewing toxic CO2 into the environment.. posted by
refiguy
on Sep 9, 2009 at 04:41 PM
posted by
ProgressivePete2
on Sep 9, 2009 at 04:44 PM
Nancy, I hear you're better off keeping it full rather than near empty. Supposedly the gas vapors evaporate faster in a near empty tank but don't as much in a full tank, since there isn't as much area for the gas vapors to occupy. Not that I follow that advise or anything, I just heard that. posted by
ghostriter
on Sep 9, 2009 at 04:48 PM
I figured out the "ATM fee" scam a long time ago. Actually, I think I wrote a blog about it! Even if you fill up, a 45-cent "fee" adds 4 or five cents a gallon. I never use Arco because of that. But the most recent thing I have been scammed on is the jacked-up price for credit vs. cash. They have the cash price in BIG numbers on the sign to get you in, and then you find out by reading the little tiny print on the pump that the price is 10-15 cents more if you use any kind of plastic. It's bigtime horse hockey...and they get away with it. posted by
donmason
on Sep 9, 2009 at 05:32 PM
Hi Ghostriter, The extra fee for use of ATM or credit cards is because the card servicer charges the business around a 4% "commission" for each transaction. Most convenience stores selling gas make maybe 5 cents per gallon, and hope you'll buy some overprices soft drinks where the real profit is made. Actually, people that pay cash in any retail store are subsidizing those that use credit cards. posted by
tonyh
on Sep 9, 2009 at 06:13 PM
You pay more for gas in California because of State and local taxes applied to it. Here in Tennessee, I filled up for $2.38 a gallon today. It's even cheaper in Arkansas. It's like everything else in California. Gasoline is taxed to death. posted by
drilnliftcrude
on Sep 9, 2009 at 06:46 PM
The pricing of oil is just a teensy bit more complicated than just being controlled by oil barons lining their pockets. posted by
VirgilAnderson
on Sep 9, 2009 at 06:48 PM
posted by
ronmexico
on Sep 9, 2009 at 07:19 PM
The international blue bloods are sitting in some room deciding what to charge for gas in Bakersfield.... posted by
VirgilAnderson
on Sep 9, 2009 at 07:22 PM
posted by
VirgilAnderson
on Sep 9, 2009 at 07:31 PM
The national average is $2.58 a gal. - The most expensive is in Northern Califronia and the least is in Mo. at $2.22. http://www.times-standard.c... --virgil posted by
NancyII
on Sep 9, 2009 at 09:25 PM
Pete, I've heard that too but not sure if it's true or not. There are lots of stories out there that the experts disagree with but I think part of my stubbornness is because I hate getting gouged. If I don't buy gas I feel like I'm cutting a few pennies off thier profit. Nevermind that overall I pretty much buy the same amount., it just feels better. The low gauge does tend to cut down on the meandering out of boredom. I can always just come straight home and fight with you guys for free...LOL. posted by
Shwaine
on Sep 10, 2009 at 12:22 AM
Labor Day weekend is what caused the latest small spike. I saw gas go from $2.99 to $3.19 at the gas station by my house in the last two weeks. It seems every time there's a "big travel" weekend, prices spike up. They don't seem to settle back down to the previous prices very much either. posted by
casooner90
on Sep 10, 2009 at 06:14 AM
What is the reason the gasoline companies are giving for this latest episode of price gouging? If you truly belive this statement, buy oil stock. Can you picture a group of bald oil men sitting around the table puffing on a cigar and setting gas prices? Let's get real. Gas, like any other commodity, is driven by market demand and supply. Additionally, we're more patriotic in Ca to be paying high gas taxes. I'm sure it's not the deflation of dollar (stimulus anyone?) or supply / demand (let's buy more big trucks and SUVs for our grocery runs) or seasonal driving habits (labor day) or winter heating (speculation). By the way, who wants more taxes? posted by
tonyh
on Sep 10, 2009 at 07:07 AM
My Dad says gas cost so much more in California because it's fresh. It's pumped out of the ground and refined right there. The stuff we get here in Tennessee is at least a week old because it has to come all the way up from the Gulf. That's why it's cheaper..lol posted by
NancyII
on Sep 10, 2009 at 07:15 AM
posted by
Lingtaowoo
on Sep 10, 2009 at 07:33 AM
Health care premiums....price of gas....it's all the same----it's because THEY know you will pay for it---or die--or walk.... posted by
Lingtaowoo
on Sep 10, 2009 at 07:46 AM
I cringe when I have to top off....2 tanks---but it will last me a month IF I'm cautious.... Expect to hear more and more fuel stealing in the future IF the price goes higher.... posted by
ghostriter
on Sep 10, 2009 at 09:32 AM
we're more patriotic in Ca to be paying high gas taxes. You are kidding, right? Seriously, much of this is meant as tongue-in-cheek. No, I don't really think there are a bunch of cigar-smoking bald billionaires sitting around setting prices all day. However, when you hear about the record profits of oil companies, you have to wonder how much of it is truly market-related and how much is pure greed. And I am serious about the speculator remark. It never fails; some speculator even mentions higher prices, and immediately the signs change. posted by
casooner90
on Sep 10, 2009 at 11:30 AM
Joe Biden said it is my patriotic duty to pay taxes. In all seriousness, the media likes to sensationalize the news by mentioning profit and not profit MARGIN. This is a terrible misrepresentation of the energy sector as they never mentioned the investment portion. Historically, the big oil companies average around 8% return on investment and had a high water mark last year around 12% (averaging the energy sector). However, when MS sells it's new windows (weren't they basically the same for the past decade or so?), nobody questions their 'profit'. Again, if you do think that the oil comanies have the power to set their prices, you should buy stock and jump on the band wagon. Speculators? Unfortunately they are needed to hedge on commodities as the right company with right fotune tellers will come out ahead of the game. posted by
AudreyB
on Sep 10, 2009 at 11:41 AM
Casooner90 No one likes a freeloader. And that's what you are if you try to slicker out of paying your taxes. I know that I don't want to pay for your goods and services because you don't want to do your fair share. So quit making a federal case out of Biden who is proud to pay his dues for living in the greatest country in the world. How many times is this silly argument about taxes going to be made? Gad!
posted by
Lingtaowoo
on Sep 10, 2009 at 11:47 AM
UBS turned over HOW MANY ACCOUNTS to the IRS again.....freeloaders hiding their money in Swiss Banks so they do have to pay taxes..... Man..I can't wait to see the list.... posted by
Shwaine
on Sep 10, 2009 at 03:24 PM
It's not just gas taxes that drive up our cost. Gas is also more expensive in certain parts of CA because of clean air regulations. That requires a different formula to be used in certain counties. Since it's a different formula and a smaller population uses it than the "regular" gas formula, prices are higher (or so the excuse goes, I have no clue if it actually costs them more to make the "clean air" formula). So the bad air in Kern County is at least partially to blame for the high gas prices here. Edit: Forgot to say that county-by-county formula deal is for the summer formula (which used to be more expensive than the winter formula). Different areas of CA have different time frames for when they must use the summer gas. I think we're on hook for the summer formula until the end of October. posted by
casooner90
on Sep 10, 2009 at 09:08 PM
AudreyB, if you paid as much taxes as I did, you'd laugh at Biden too. Put it this way, I am paying more in taxes than the median income of Kern County. So, how is this fair? I think I use public services as same if not much less than the average Joe so where's my representation? Considering that I'm not counting on social security and certainly not relying on federal hand out called welfare or medical, I don't think I'd fit the "freeloader" you so carelessly labled me as. Oh, I get it. You want me to pay for your share too. So how many of Obama's cabinet members have tax problems? posted by
tonyh
on Sep 10, 2009 at 09:24 PM
Sooner, we're in the same tax boat. I understand completely. Trouble is, that some of the people that post on these blogs have no clue what it's like to pay those kind of taxes every year. They're on the receiving, rather than the giving end. You'll just have to let them off the hook because they'll never understand. posted by
tonyh
on Sep 10, 2009 at 09:43 PM
Shwaine, somehow I doubt if the whole clean air thing is what's driving the difference. Since our gas has 10% Ethanol also, and I saw it for $2.31 on the way home from work this afternoon, I still think it's state and local taxes............ posted by
VirgilAnderson
on Sep 10, 2009 at 09:57 PM
" Trouble is, that some of the people that post on these blogs have no clue what it's like to pay those kind of taxes every year. They're on the receiving, rather than the giving end."
You see, what happened is this, Tony had too much expensive scotch last nite and ended up bumping his head. He had bizarre and vivid visions through out the night where god visited with his lady, wisdom, and her mistress, fortune. They exposed to him the secrets of all those whom he doesn't like. --virgil posted by
NancyII
on Sep 10, 2009 at 10:03 PM
posted by
vanityfair
on Sep 10, 2009 at 10:28 PM
In the mid to late 80s, 11-C Market on Roberts Lane in Oildale had gas at reasonable prices. The owner pulled the pumps and repaved into a parking lot after two realities became clear: 1. Nearly ALL of those who used the gas station only bought a couple of gallons, and back then it was less than a dollar a gallon.The margin on such small purchases couldn't even cover the energy and labor. The owner LOST money when a consumer pumped only a gallon for $.99 2. Environmental mandates went crazy. posted by
tkozy
on Sep 10, 2009 at 10:46 PM
In Feb. 2002 Gasoline was .85 cents a gallon in Bakersfield. Gasoline tax was only 20 cents cheaper then than it is now. And We are awash in petro products. We are short of storage areas. Tankers sit, not being unloaded at 3 to 10 dollars per month per barrel storage costs. (guess who they expect to get soaked with the storage costs) Speculators are not buying barrels of crude. They are buying contracts. They took a beating last year and are willing to prop up the price, hoping on a disaster to provide them with the opportunity to dump their contracts and at least break even. At 70 bucks a barrel a contract will cost 70 grand. You only have to put up 1/7 of the cash. So 10 grand lets you control the price of 40 thousand gallons of crude. Consider that you have many hedge funds each with billions of dollars of cash. And it's easy to see how the crude market can be monopolized. Our pension funds are to blame also. Using our retirement funds to drive up the price of gas today by buying and trading in petro futures.. To get us 5 bucks a month 50 years from now in pension.
posted by
tkozy
on Sep 10, 2009 at 10:59 PM
Blue is 5 year average.
Distillate is diesel and heating oil. The EIA crude storage does not reflect crude still on tankers and not off loaded. So this figure can be manipulated by the industry by controlling the off loading of tankers.
Demand this week, labor day weekend, was below that of January of this year. America has seen demand destruction for years now. Refineries are running at record low percentiles. Below 80% at times this year. There is absolutely no excuse for gasoline in California to be above $1.50 posted by
ronmexico
on Sep 10, 2009 at 11:04 PM
I hear there is a refinery in Bakersfield for sale. Imagine if the liberals banded together and bought it. Then they could sell gasoline for $1.50 a gallon... posted by
tkozy
on Sep 10, 2009 at 11:12 PM
mexico,
If greed isn't set aside. Municipalitized refineries are in our future. No different than LA Water and power. Government can do it better. posted by
ronmexico
on Sep 10, 2009 at 11:15 PM
posted by
tkozy
on Sep 10, 2009 at 11:24 PM
Mexico, You have a hard time with history. Private industry charged 800 dollars for the hammer. Government found the over charge. A private hospital allowed a nurse to infect dozens of surgical patients with Hep C. I'll take the 800 dollar hammer, thank you.
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