Morning Read: Gas prices soar in North Country
Bob Bennett at the Plattsburgh Press-Republican notes that prices at the pump have risen by about half a buck a gallon since September.
Pump prices here are also 28 cents higher than the national average.
“It’s all about these companies making money,” said Donovan McQueen, 23, of Westport. He drives to Plattsburgh every day for work.
“Three thirty-five is ridiculous,” he said of the current price where he was pumping gas.
Susan Britain, 60, of Essex felt similarly.
She believes gas companies manipulate the prices, jacking them up around the holidays when people travel and during the colder months when people have to heat their homes.
“It’s not really supply and demand,” she said.
What do you think? Is this gouging? Good old fashioned capitalism? Or maybe it’s time to buy one of those new electric buggies? Read the full article here.
It is manipulated supply and demand. Supply is kept limited by refusing to build new refineries or drilling an pumping already available supplies until regulators relieve them from environmental regulation. By limiting supply as demand goes up around the world (China’s growth is a big factor in that) they can insure the price will go up. The oil companies are making plenty of money (Have you heard anyone report an oil company among those hurting from the recession?) and there is no incentive for them to lower the price by increasing supply. If there was a competitive fuel out there that was cutting into their market share, the supply/price situation would change rapidly.
We’ve devalued our currency, it’s worth less. So our dollar buys less gas, sugar, coffee, whatever. Of course those darn oil companies are still making their 8-10 cents a gallon, the greedy sobs. Funny, I don’t hear the State complaining about the increased tax revenue they get with higher prices.
Oh yeah, and don’t forget were adding 10% ethanol now. The fact it costs as much or more to produce a gallon of ethanol than it sells for is of no concern.
We need to get over the idea that cheap gas is a right or entitlement,. Whatever the short term reasons, oil will be significantly higher in the future due to new oil discoveries not keeping pace with worldwide demand as India and China industrialize, and their middle classes grow. When it comes to oil, we are a have not nation, or, at least consume more than we can produce.
While we will never literally run out of oil, total world production has leveled off around 85 million barrels a day. Who in their right mind would be drilling for oil 2 miles below the ocean if they didn’t feel it was absolutely necessary? I expect gas rationing within 3-5 years. Everyone will get their twenty gallons a week. If not, those geographical locations furthest from the refineries (like the North Country) could see real shortages.
While everyone is so focused on deficits and unemployment, our next crisis gets closer every day. Those individuals, businesses and institutions who take the sustainability thing seriously will be in the best shape going forward. Governments in Germany and England are working on this. Our own government, and both political parties are failing us miserably. BTW, NYS gets it, at least for state government. An Executive order requires all state agencies to cut their fossil fuel consumption by 35%.
But what is more interesting is why does the North Country pay so much more than the rest of the nation for gas at the pump?
Distance, blend, state and local taxes and my favorite- local competition. I once asked the manager of our local Gouverner Stewarts why the bread at the Harrisville Stewarts was the same price as Gouverneur, but the gas was about a dime cheaper at Harrisville. She explained it was simple local competition.
Seems logical to me.
Brian and his knee-jerk reaction to “good old capitalism gouging” template.
Hey Brian: ever hear of the EPA? ever hear of all the oil under American turf that you lefties won’t let us drill for? ever hear of the “save the sand turtle”?
I put most of the blame of higher gas prices on the stupidity of the left.
Local Energy Price Survey Jan. 3, 2011
Local Energy And Unemployment Update
GASOLINE
State average: $3.278/gallon (last year $2.821).
Upstate avg.: $3.247/gallon (last year $2.799).
Local: Citgo Inlet $3.299; Citgo Wells 3.379; Stewart’s Indian Lake $3.339; Stewart’s Long Lake $3.359 One Stop Indian Lake $3.359 Mountain Market Speculator $3.359 cash and $3.419 credit; Casey’s Corner Piseco $3.379.
DIESEL
Statewide avg.: $3.428/gallon (last year $2.857).
Local: Mountain Market Speculator $3.309 cash and $3.369 credit; Casey’s Corner Piseco $3.479
HEATING OIL
Statewide avg.: $3.398/gallon (last year $2.858).
North Country avg.: $3.412/gallon (last year $2.901).
PROPANE
Statewide avg.: $2.998/gallon (last year $2.661).
North Country avg.: $3.468 (last year $2.924).
LATEST UNEMPLOYMENT RATES
NYS Nov. 2009 – 8.5%; Nov. 2010 – 8.2%
Hamilton County Nov. 2009 – 8.8%; Nov. 2010 – 9.4%
Note: Hamilton County always has one of the highest unemployment rates in the winter and one of the lowest unemployment rates in the summer.
Talking to an owner of a convenience store chain once, he said that no store makes money selling gas. It’s just there to pull you into the store, where they make their profit selling food.
I blame speculation for the drastic price fluctuations. ANWAR in the Arctic holds about one year of US oil demand. The tar sands in Canada are now a hotbed of activity, when 10 years ago no one could be bothered to extract the oil, it was just too expensive.
Add on the drastic increase in demand from developing countries, and you have a situation where Americans, long used to being the gas hogs of the world, are now competing with the rest of the world.
$2.00 gas is done. Get over it, buy a more fuel efficient car. Consider moving closer to work. Maybe give up some of those gas-using toys (ATVs, snow machines, motor boats) and pick up a healthier hobby.
“$2.00 gas is done. Get over it, buy a more fuel efficient car. Consider moving closer to work. Maybe give up some of those gas-using toys (ATVs, snow machines, motor boats) and pick up a healthier hobby.”
True, and yet here we are hoping for more tourism, snowmobilers, skiers (downhill is where the moneys at), rafters, leaf peekers, etc. All people we depend on to drive here. When gas get’s back up to $4.50-5.00 a gallon or more and diesel’s pushing $5.50-6.00 just how much tourism do we realistically think we’ll get? The economy will grind to a halt just like last time. So there won’t be the tourists, the snowmobilers, the people eating out, etc. And the prices on the fuel efficient cars will rise, just like last time.
Darned if you do, darned if you don’t.
Ski areas make more money in concessions than they do on lift tickets. As long as you find something that draws as many people as downhill skiing does, and sell them overpriced hot dogs and coffee, you could still be making some profit.
however, if no one comes to the ADKs to ski/snowmobile/ATV, I doubt that would have global repercussions on the electric/hybrid car market.
High gas prices hurt rural areas , especially the North Country where there is little public transportation.
The high cost of transportation is also hitting people who use buses and subways. It’s not just rural areas.