$4.09 for regular gas. what do you think? (Phoenix, Tucson: HOA, homes)

[AZgarden]

I believe out there somewhere the "bigwigs" have met. Global warming and the environment have been such a concern that "they" decided to do this to us so we would use less energy. So that we would not drive as much, cloud the sky with pollution, and make the earth a less viable place.

And yes, the fact is that prices should be going DOWN not up. If less people are driving, there is less demand. Economics (which I had about 200 years ago) says demand and price are intimately linked. So I ask you, what's the deal? Somebody not telling us the Whole Truth and Nothing But the Truth.

[Ponderosa]

Originally Posted by LadmoFan

Actually I am very impressed with the Valley Metro Bus service. Bus stops are located conveniently and with very little walking between locations. The buses (at least route 70) run on a frequent basis so there is little wait time.

LF

I rode the bus to work for a couple years when I lived in Ahwatukee. It was OK, but it took much longer than by car (that was then, may be different now). I met a lot of nice and a lot of weird people on those bus routes. There were many regular riders like me. I actually have quite a few good memories of those days.

[HX_Guy]

Originally Posted by PhxBarb

And yes, the fact is that prices should be going DOWN not up. If less people are driving, there is less demand. Economics (which I had about 200 years ago) says demand and price are intimately linked. So I ask you, what's the deal?

The way I see it, and I may be completely off...but gas isn't a "normal" commodity. Normally, price is supposed to go down with less demand...look at the housing market or look at the price of construction material, both have gone down since the demand is not there. The thing is though...homes/construction are not something that people need, at least not everyone...we can stay in the homes we already have, no real need to buy new.

With gasoline though...there really isn't much choice. So let's say the gas/oil companies want to make $1,000 and when demand was high, that took 500 gallons @ $2.00 each. Now if people start buying less gas...say they now only buy 400 gallons and the gas/oil companies still want to make their $1,000...they now would have to sell it at $2.50 and people will pay it because there isn't much choice.

Again I might be off here but that's the way I see it working.

[Ponderosa]

Originally Posted by HX_Guy

The way I see it, and I may be completely off...but gas isn't a "normal" commodity. Normally, price is supposed to go down with less demand...look at the housing market or look at the price of construction material, both have gone down since the demand is not there. The thing is though...homes/construction are not something that people need, at least not everyone...we can stay in the homes we already have, no real need to buy new.

With gasoline though...there really isn't much choice. So let's say the gas/oil companies want to make $1,000 and when demand was high, that took 500 gallons @ $2.00 each. Now if people start buying less gas...say they now only buy 400 gallons and the gas/oil companies still want to make their $1,000...they now would have to sell it at $2.50 and people will pay it because there isn't much choice.

Again I might be off here but that's the way I see it working.

I think the supply/demand rules are at play in commodities. In fact, the commodity bubble is closely analogous to the housing bubble. In the housing bubble investors are said to have bought houses they had no intention of living in or even possessing longer than it took to sell them. The same is now going on in crude. Pensions and index funds are buying oil that they have no intention (or ability) to take delivery of. In both cases, a demand is being created that drives up the prices. I also believe there is shenanigans like in the housing bubble going on: things like when a company sells oil to a subsidiary or to a creditor who then sells it back marking up the price each time. This was a rampant in land and even in the deregulated utility business. In each case, the bubble eventually bursts when prices rise too high and demand slacks. You are right that oil is less elastic than homes, but there is a price point at which we can and will cut back. I think we are close. If I am right, oil will come crashing down. It happened before back in the 1980s. But then, instead of keeping our frugal ways we all went out and bought big cars and big houses and set the stage for the latest bubble.

[azjack]

"Does the bus go where you want to go? The same question with the light rail. I will be living in Surprise. Where are the busses there? "

There are two express buses to downtown Phoenix every weekday morning near the Surprise aquatic center on Bullard. There is also an express bus from there to the Scottsdale airpark area, but I have never taken that one.

[collinsl]

Look on the bright side! UK prices = $10 per gallon. And the government is planning more tax!

[shilo0854]

Much of overseas have higher gas but also have lots of other transportation options. We in AZ need to ramp up the buses alot more to cover the valley in short wait times and I still do not know why we do not use a rail system. We are unique here in that we have a large layout compared to many states here also.

[shiphead]

Originally Posted by collinsl

Look on the bright side! UK prices = $10 per gallon. And the government is planning more tax!

That's why Georgy boy left England. He was sick of the taxes

[Nanny Goat]

Originally Posted by 61scout80

Ya, its great for this country. My parents, living in the north east on a fairly fixed income kept their home at 50 degrees last winter because they couldn't afford heating oil, or to install a different heating system. As of today the heating oil prices have doubled since last winter.

Great for the country?? As long as it isn't your parents or loved ones suffering.
I feel sad for your parents or others who have to go through this. It could be any one of us. I lived in the NE and know how cold winters (and springs and falls even) can be.

[rebelcork]

Drill, Drill, Drill, AND seek out other ideas at the same time (but not that negative energy Ethanol - what a load that whole idea is/was).

It was $4.50 here yesterday. Oh well.