Alaska Still Getting The Shaft... (Nikiski, Seward: how much, utilities, taxes)

[BudinAk]

by high gas prices...

I see the average price around the country is like $1.68, and it is less than $1.50 around St. Louis.

Well guess what...we are still paying $3.19 a gallon for regular unleaded here in Seward, Ak. What is it about Alaska, and Seward in particular, that we have to pay more than DOUBLE? We are on the highway system: it's not like they have to barge or fly the stuff in here. The oil comes from inside the state. And the refinery is in Nikiski...only about 100 miles away. No other product here is double of that in the south 48. (unless you happen to live in one of the villages, with no road access) Food and consumables might range 20% or so higher than Seattle, but nothing close to like double. I don't understand how they can justify the gas prices. Especially when the product is made right here. Just IMO, but I think we're being robbed....


Bud

[karfar]

Wow, $1.68?? I think the lowest it's been here is what I saw yesterday, around $1.75. And of course, being the stupid girl I am, I waited to get my gas & just a few miles away I filled up at a place where it was $1.84, doh!!!

[stiffnecked]

My daughter in Norman Oklahoma says it's $1.49 a gallon. Just in time to gas up and cruise the black Friday sales.

[Barkingowl]

I paid $2.09 this evening to fill up with premium.

[Marty Van Diest]

The argument I have heard is that the only competition for the two refineries would be fuel that was barged to Alaska from the lower 48. The cost of barging the fuel would bring the prices to just above what we are currently paying.

So they feel justified in taking that higher profit. There is no limit on the profit that they can take that I know of. As long as the demand is there, they will charge the price.

I suppose there is always the argument that they need the higher profit per unit sold because of the small population they serve to support their fixed costs. I'm not sure if that is a good argument or not because I don't know how much the other refineries in the lower 48 produce compared to the two in Alaska.

I would assume that their cost for crude is lower than the cost in the lower 48, but I'm not sure of that either. Perhaps the oil producers charge them a higher price for the same reasons that they feel justified in charging us the higher price.
Until we know what the actual profit margin is it's hard to say we are being gouged...allthough I do assume that we are. Then after we know the profit margins we have to decide if it is reasonable to limit the profits.

You can make an argument that fuel supply is similar to a utility rather than a commodity. I believe the profit margins are regulated for utilities such as Enstar and Electric Companies.

[InfectedMushroom]

I am all for less government in my life, but there needs to be regulation on this stuff. Maybe like a 1.50-2.00 dollar cap to prevent such obvious gouging. We do however, need to be moving much faster on producing hybrids/alternative energy cars. How odd that the Big 3 just made bigger SUVs and now show up asking the gov't for a handout?

Sorry getting off-topic there, but Alaska needs SOMETHING done to bring down the prices in line with the L48

[Grannysroost]

Originally Posted by InfectedMushroom

I am all for less government in my life, but there needs to be regulation on this stuff. Maybe like a 1.50-2.00 dollar cap to prevent such obvious gouging. We do however, need to be moving much faster on producing hybrids/alternative energy cars. How odd that the Big 3 just made bigger SUVs and now show up asking the gov't for a handout?

Sorry getting off-topic there, but Alaska needs SOMETHING done to bring down the prices in line with the L48

Yup all, not even close and how to explain on the highway system....I am probably 30 miles away, and same .....

[DannyL]

I don't have a problem paying 3 bucks for a gallon of gas, I just wish heating oil would fall to 1.68 a gallon. Doubt it will tho...

[Classic Satch]

Originally Posted by Marty Van Diest

The argument I have heard is that the only competition for the two refineries would be fuel that was barged to Alaska from the lower 48. The cost of barging the fuel would bring the prices to just above what we are currently paying.

So they feel justified in taking that higher profit. There is no limit on the profit that they can take that I know of. As long as the demand is there, they will charge the price.

I suppose there is always the argument that they need the higher profit per unit sold because of the small population they serve to support their fixed costs. I'm not sure if that is a good argument or not because I don't know how much the other refineries in the lower 48 produce compared to the two in Alaska.

I would assume that their cost for crude is lower than the cost in the lower 48, but I'm not sure of that either. Perhaps the oil producers charge them a higher price for the same reasons that they feel justified in charging us the higher price.
Until we know what the actual profit margin is it's hard to say we are being gouged...allthough I do assume that we are. Then after we know the profit margins we have to decide if it is reasonable to limit the profits.

You can make an argument that fuel supply is similar to a utility rather than a commodity. I believe the profit margins are regulated for utilities such as Enstar and Electric Companies.

After talking to my best friend back in Pittsburgh today, I realized just how badly we're getting screwed.

There is truly no excuse for it. As a conservative, I'm usually very averse to government intervention in the free market. However, given the facts of the situation, I believe that something has to be done.

It's blatantly obvious that now that the inmates have taken over the asylum, there will be no drilling in ANWR or most other resource-rich areas of the US for at least the next four years. Once this temporary economic downturn has run it's course, energy costs will again inevitably climb. Especially with the moronic and utterly useless measures proposed to fight a nonexistent problem..i.e...the "carbon cap" idiocy.

Every time I drive down the Glenn and see some lemming in their Subaru, VW, or Volvo with an "OBAMA" sticker still on his/her vehicle, I just wish I could have 10 minutes to disabuse them of their obvious ignorance. I consider myself an Alaskan now, first and foremost. I love this state and all other political /societal considerations are subordinate.

[seastar311]

Even here in "Crook County", Illinois the gas prices have been $1.68-$1.89. Our prices were the worst in the nation for awhile. If our prices can go down, with all of our crooked added-on taxes, WHY can't they go down in AK? Makes no sense to me...