Fuel Prices Likely to Start Climbing

V-6 Fuel 2 II

For the last few months, gasoline and diesel prices have been declining across most of the U.S., but that could change as we move deeper in to July and August, typically the months where demand peaks.

According to Cars.com, instability in the Middle East, negotiations with Iran and the Greek economic crisis could contribute to unstable oil markets. The good news is we have a strong supply for the foreseeable future and places like California (typically with the highest prices in the nation) have benefited from eight straight weeks of fuel-price declines. However, several sources expect those prices to start climbing aggressively, perhaps as soon as next week.

To check whether fuel prices are going up or down in your city or state, click here.

Cars.com photo by Evan Sears



There is also limited refinery capacity. There has not been a new major refinery built in the US since the mid-70's and refinery capacity has been reduced.

PUTC/Mark writes: "instability in the Middle East, negotiations with Iran and the Greek economic crisis could contribute to unstable oil markets."

From other articles on the SoCal Gas Prices Rising:

"She said Friday's spike in Southern California gas prices is not a result of price gouging, but rather a lack of supply due to decreasing imports and issues at local refineries like February's explosion at the Exxon Mobil in Torrance."

I love how they trot out this Bolshevik refinery excuse all the time, yeah we already had the Torrance spike excuse and prices were coming down, I guess they didn't make enough off the July 4th weekend so they are getting it now for instability in Greece PUTC?

"Other analysts blame California's special blend of less-polluting gasoline, CARB, and the EPA."

You can't look to the State to do diddly squat for consumers because the tax revenue jumps with every increase. They can sneer at us Californians now, but just wait the gaia worshippers will be pushing the special blend crap as far and wide as possible.

If you want to start paying less:

Alleviate future fuel price spikes by reconsidering the economic impact or timing of Global Warming policies especially during a time of severe economic problems, like right now with high unemployment and underemployment, nearly 50 million Americans in poverty, nearly 50 million Americans on food stamps and millions of families struggling to pay their mortgages.

Reduce gas taxes

Get rid of special blends

Ease the regulatory difficulty to build and expand storage and refining capacity

There is no inevitable reason why California fuels need to be more expensive in the future than in other regions.

The refinery capacity in the US has been reduced so much that if their is a refinery fire, a hurricane, any major natural disaster, or a shutdown for maintenance the price of gasoline and diesel will go up. The only way to stabilize prices are to either build new refineries and expand current capacity of existing refineries which both take years and large capital investment because of regulations. Another solution would be to import more refined products. Yes there is the price destabilization due to Middle East, negotiations with Iran and the Greek economic crisis but that effects the price on the commodities market which does effect the price that oil trades for. Oil is based on the futures trading which is based on what those who trade in oil futures think will happen to oil supplies and not what will actually happen. Regardless limited refinery capacity and reformulated gasoline and low sulfur diesel costs will be passed on to the final consumer.

We wouldn't need to import squat if the damn pipeline would be approved.

In MY area (Southcentral New Mexico 90 miles north of El Paso, TX), gasoline prices are actually going down a little to $2.459/gal RegUnl 86-octane. Mid-grade is 10-cents more, Premium 10-cents above Mid-grade.

Probably because of the overabundance of crude oil stored in rail tank cars parked in the desert for months.

The US Department of Energy dates back to the 1970s. Virtually since its inception the agency has been born to screw consumers. No emphasis on innovation; huge emphasis on silly crap like global warming.

Every time some prince over in the Middle East gets heartburn over the oil glut in today's crude markets, a few hundred bureaucrats at DoE get a tummy ache.

Do you want to improve the situation?

1. Leave the taxation of fuel at the state/local level.
2. Cancel the DoE.
3. Allow the legal sale and refining of methanol from American-produced coal.
4. Stop the requirement that US retail gasoline have ethanol in every gallon produced.
5. End the US Highway Trust Fund and all federal systems for road maintenance (give it to the states/localities)

If we had all of the complex regulations, and taxes on fuel and cars in place back in the 1950s, the nation's great highway system never would have been built.

This would not be hard, would create good jobs.

Considering all the pickup trucks, muscle cars and SUVs in my city, I wonder how high prices will have to soar before everyone considers a staycation?

Yesterday's prices,
reg gas,$3.15.9

@ToxicSludge --Those are some good prices Prices around where I live have gone back to $3.99 a gallon. Part of the price includes the reformulated gas and the fact that the stations are off the interstate.

@papa jim--I don't have a problem with the fuel tax itself if it goes toward roads and bridges but I do have a problem with hiking and biking trails been subsidized out of the tax along with parking lots for museums and parks. The federal fuel and tire excise taxes were originally intended to fund the highways and bridges.

@Jeff S, agree, but you may have missed my point--I want to end the US taxes on energy and let the state/local institutions be responsible for it. Today, every little county in America has at least one f/t employee who does nothing except apply for Federal grants for road money (and public schools, but that is another topic).

All of the states send representatives and senators to Washington to fight over the distribution of federal money for roads, bridges, etc.

Why not eliminate all that and just pay for the exact same highway projects and repairs using the taxes we already collect. Skip Washington altogether.

Once the taxpaying public figures out how much money is saved by getting Congress and the White house out of the picture, then we can take that same lesson and get Washington out of our local schools. We would save billions!

Vehicles with clean diesel technology cost less overall than their gasoline equivalents, according to a researcher at the University of Michigan Transportation Research Institute.

@papa jim--I don't disagree but having worked in government it is hard to tame the beast. Even a good law can get lost and lose its original intention once it becomes part of the bureaucracy. As it has been said "the road to Hell is paved with good intentions."

Jeff S The US is estimated to be 17 trillion in debt. We have to start somewhere.

The story about Greece in the news the last few weeks is a drop in the bucket compared to the mess we have in Washington. Greece is less than 1% of the global economy, but every time the US coughs the whole world catches a cold.

Greek voters refused to take a haircut, but their ability to borrow in the future just when out the window. The same is on the horizon for the US. Reducing the Washington mess would not be easy to rearrange but it's what keeps those people at Goldman Sachs and BoA awake at night. For good reason.

@papa him
To put everyone in a happy mood, the Chinese Stockmarket had a massive fall a week ago. Chinese think they have stabilised it

Good thing Ford, GM and Toyota have plenty of fuel efficient vehicles to choose from.

Recent news the Global Colorado is being updated and the "Baby Duramax" another name for the VMotori Diesel will be available in the U.S. Chevrolet Colorado at the end of 2015

@Rbt Ryan,

I would not put much faith (or real capital) at risk based on the predictions of bankers in the Chinese system -- or those big systems in the West for that matter.

What you should pay attention to in my opinion is the actual performance of the world's leading economies and trading zones. Bankers? No so much.

Just to be clear I'm not trashing the guys at your favorite local bank--I'm talking about the huge currency-trading cartels and the World Bank, the IMF, the Federal Reserve, The EU, etc. They are just reading the tea leaves and making big speaking fees for their lectures. Most of those guys were smart 20 years ago, but they've put too much faith in their own press releases since then.

Whenever some banker/politico somewhere tells you that he has the brains or the power to move markets, back away quickly. Quickly.

I still see the potential for oil prices to drop, especially if a deal is struck with the Iranian's.

The Greeek Crisis has little to do with oil pricing.

The per barrel price of oil might drop so more but refined petroleum products not as much for the reasons I stated above. Limited refinery capacity will keep prices higher that they would be if there were more refinery capacity. Either refinery capacity will increase or more refined product will be imported.

Translation, Obama is mad at all the SUVs and trucks that the big three are selling (global warming ya know :rolling eyes: ) so we have to make the price of fuel skyrocket in order to make people stop buying them.

@papa him
Could not agree more. They are acting like there was no GFC. It is frightening

@Robert Ryan--I looked at your link on the global Colorado and it appears to look more the the US Colorado. I prefer the front of the US Colorado which appears to be what the 2016 global Colorado is adopting.

$4.31/gal for regular in SD, CA. Reminds me of 2008-09 when I sold my truck.

@James your pump price is 1.70 higher than it is here in the Southeast. How does paying all that extra fuel tax feel?

Fuel prices will be under $2 before thanks giving. There is a glut in oil and fuel from the slow down all over the world including china, europe and the usa. Look at the HORRID numbers Cat just released on earth moving equipment sold last quarter... worst in 5 years down 8.9%..... there is a reason, slow down. In truck shipping , freight is down 1.2% month over month, slow down. Gas prices will drop not increase unless the community instigating rabble rouser tries to impose more climate madness rules.

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