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California Folks- Gas @ $3?


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WTF?

I just saw on my local Long Island newspaper that gas around Frisco is almost $3/gallon!

I just paid almost $2 for Regular gas. How is it that gas is $1 more over there? Do you have to give Arnold a cut every time you get gas? Is the supply low bcause guys like Arnie have 5 Hummers?

 

Either way, either coast, gas prices bite the big one. :o

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My fleet fuel costs have risen by 75% in the last 6 months or so.

I'm anticipating an expenditure of over $300,000.00 this year. My single largest outlay of cash in my fleet is fuel. That cost is higher than all other costs combined, including insurance, registration, tires, & other repair and maintenance.

Ridiculous.

 

Our Joint

 

"When you come slam bang up against trouble, it never looks half as bad if you face up to it." The Duke...

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Originally posted by daklander:

My fleet fuel costs have risen by 75% in the last 6 months or so.

I'm anticipating an expenditure of over $300,000.00 this year. My single largest outlay of cash in my fleet is fuel. That cost is higher than all other costs combined, including insurance, registration, tires, & other repair and maintenance.

Ridiculous.

Do you hedge or buy forward contracts? If not, consider hedgeing using out of the moeny puts/calls. Cheap insurance against radical price changes. I used to trade petroleum. Out of it now, but hedging does work as long as you don't get into speculation (i.e. buy 'extra' contracts to make moeny on')
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CA gas will always cost a little more (a few cents/gal) than, say, VA gas, since we have a different formulation. The formula decreases emissions, and smog has actually gotten better in SoCal over the last 15 years or so because of this.

 

SoCal and Bay Area gas will always cost a little more because property costs and labor costs are higher than, say VA, and the stations have to charge a little more to make up for that.

 

Gas here in CA is rediculously expensive because the oil companies (not OPEC directly) have a are a monopolistic group. One raises prices arbitrarily to their dealers, and all dealers follow suit. We as consumers, unless we live on the AZ or OR border, have no choice but to continue to buy gas; we might shop a little harder (nothing like driving further to pay a few cents less per gallon on gasoline :confused: ), and we might drive a little less (in SoCal? Not a chance).

 

Last year, gross corporate profits for US oil companies was almost exactly the amount they raised prices during the summer gas-price-spike.

 

Since they work in collusion (possibly tacit collusion, but I'm not feeling generous), isn't it in the public health, safety, and economic interest to address some kind of price regulation? Wouldn't Dak's business be able to employ more people, or at least let him buy more music toys, if we weren't being gouged?

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I live in Orange County and I can get unleaded regular at ARCO for $2.09 p/gal. for my gas sipping Chev Cavalier.

 

http://home.earthlink.net/~sraymar/Images/Cavalier.jpg

 

Don't hate me because I get 35 mpg. :D

Steve

You shouldn't chase after the past or pin your hopes on the future.
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Ok,so in Frisco we have $3.00,in LA we have $2.50,and in Orange county we have $2.09,and all 3 are located in So Cal. last i looked.In NY(L.I.) it's around $1.89,and we have emmision additives too which brings it up a few cents every summer,but this time Opec is blaming it all on supply&demand.So we have disparity in prices all over the place,a product that generates untold billions and pollution and controlling companies that are pretty much dangling the world on puppet strings when the mood hits.As far as I'm concerned,Oil companies have a lot more to answer for than prices,but that would bring this discussion to another section of the forum.
"A Robot Playing Trumpet Blows"
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As far as I'm concerned, Oil companies have a lot more to answer for than prices, but that would bring this discussion to another section of the forum.

 

Well I'm still waiting on that solar anti-matter powered Cavalier! Bring it on!! :D

 

http://home.earthlink.net/~sraymar/Images/Cropcir.jpg

 

Steve

R.I.P. Chuck Niles

You shouldn't chase after the past or pin your hopes on the future.
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Originally posted by Alndlnbot:

Ok,so in Frisco we have $3.00,in LA we have $2.50,and in Orange county we have $2.09,and all 3 are located in So Cal. last i looked.

I know that, as a typical New Yorker, you don't care about geography west of the Hudson, but calling San Francisco (it's not Frisco) part of Southern California is about like calling Buffalo a suburb of Manhattan. San Francisco is about 400 miles north of L.A.
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Originally posted by sacdog:

Those funky little hybrid cars are looking more appealing these days. :rolleyes:

Yeah, except for the fleet I manage they won't work. The freaking equipment and product that needs to be hauled would squish those little toys.

 

Yeah Doug, there is collusion, though tacit, it's still collusion.

My primary purchase is diesel fuel. It changes a much as a dime a gallon overnight on my rack price daily quotes.

That gas line leak in Arizona was used as a price increase a couple of months ago. Thing is, it was a small, 4" spur line and didn't affect anyone except that small area in Arizona.

Another reason that's spouted often, as to fuel costs in California is the formulation with MTBE. Now, with the proof that it's one of the worst water pollutants in existance it's going to be phased out. The result? Higher anticipated costs due to reformulation again. It IS a scam.

Another thing comes to mind in the thoughts about collusion. If there weren't some sort of tacit, or other, collusion why does ARCO rise and fall with the OPEC situation? There are a couple of other oil companies that don't rely on OPEC and they could, were it not for profit taking and gouging the customers, keep their prices down and drive the other companies down along with them.

 

In essence Diesel formulations and other issues, down refineries & etc should not affect the gasoline prices and vice versa, but do. The only explanationcan be collusion of some type between the companies and divisions of the companies.

 

Our Joint

 

"When you come slam bang up against trouble, it never looks half as bad if you face up to it." The Duke...

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Originally posted by antimatter:

Hey George and Jeff,

Why can't I call San Fransisco Frisco?

just wondering.

Thanks

In San Francisco, people who refer to the city as 'Frisco' are the equivalent of what New Yorkers refer to as 'The Bridge and Tunnel Crowd'. The name of the city is San Francisco, and that's what the residents prefer it be called. It's like having a friend named William who objects to being called 'Bill'. Sure, you can call him that, but expecting him to like it? It's just courtesy.
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It's going to get worse this summer. Gasoline prices are related to oil prices and reserves, and those numbers are all fundamentally pointing towards higher prices. It's not a conspiracy; oil supplies are tight and not showing any signs of increasing, while demand continues to skyrocket.

 

NYTimes article

----------------------------

Phil Mann

http://www.wideblacksky.com

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Originally posted by flyscots:

Still nowhere near us.

 

On average it's £1.79 a litre here.

That's roughly $2.86 per litre.

That's roughly $8.60 per gallon.

 

Driving in the US is very cheap compared to the UK.

 

John Scotsman

Are you figuring to Imperial Gallons or US Gallons?

 

Just a nitpick, but since 5 Imperial Gallons ~ 6 US Gallons, while still expensive, it wouldn't be quite that much (about $7.10 as opposed to the $8.60 you quote).

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Fuel prices are tied to the futures market more than the physical supply. The futures markets are controlled by high volume speculators and hedgers. The spec traders freak on ANY news story relating to supply (refinery fire, pipeline break, spill, labor strikes) , and then factor the degree upswing or downswing in prices based on physical supplies, time of year, amount of contracts traded and reflect it in their futures trades.

 

This, imho, is gonna be a good year to make money in the energy markets. Election year, war in Iraq, terrorist uncertainty etc all feed the machine.

 

If I bought or sold any quantity of fuel greater than a few hudred thousand gallons, I'd hedge it unless you have a locked forward contract. The volatility is what kills you, and the hedge protects against that. The volatility is also what can make you money IF you do it right (out of the money call/put spreads).

 

They ain't making any more dead dinosaurs, so unless we see some big changes in solar or alternative energy sources, fuel prices will continue to climb.

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Originally posted by GeorgeVW:

Originally posted by antimatter:

Hey George and Jeff,

Why can't I call San Fransisco Frisco?

just wondering.

Thanks

In San Francisco, people who refer to the city as 'Frisco' are the equivalent of what New Yorkers refer to as 'The Bridge and Tunnel Crowd'. The name of the city is San Francisco, and that's what the residents prefer it be called. It's like having a friend named William who objects to being called 'Bill'. Sure, you can call him that, but expecting him to like it? It's just courtesy.
lol...I think you all are taking this frisco thing a bit far. I lived in the city/frisco/the city/sf for the first 9 years I lived in the states/us/usa/etc etc and I never heard of frisco till I went down to Rivertucky ERR UC riverside for school.

 

I can honestly say, now living in Oakland/Oaktown/etc that I've never EVER heard anyone complain about the term, "frisco." It's not really used, in large part to George's comment about the "bridge and tunnel" crowd, but it's not that big of a deal...it's slang and rarely used...

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Originally posted by flyscots:

Still nowhere near us.

 

On average it's £1.79 a litre here.

That's roughly $2.86 per litre.

That's roughly $8.60 per gallon.

 

Driving in the US is very cheap compared to the UK.

 

John Scotsman

Unless fuels gone horribly expensive north of the border,I think you mean 79p per litre, John. I just filled up today here in Bristol,58.55 litres for £43.85, or about 75p per litre. At current rates, that's about $5 per US gallon. Still a lot cheaper in the US though.

Big Hat. No Cattle.

http://www.theshrinks.com/

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Originally posted by Groovepusher Sly:

How about a Hydrogen powered Shelby Cobra Hydrogen Shelby Series I

0 to 60 - 4.4 sec.

1/4 mi. - 12.8 sec.

Range 80 mi. per fill up!

 

Sly :cool:

I've been waiting for Hydrogen powered cars since I first heard of the concept 30 years ago. What's the hold up?
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