Why Are Gas Prices in Idaho Still High in Comparison to Last Year at This Time??

[IdaD]

Originally Posted by RobtHansen

Correct. We own a hybrid but don't drive a lot. The registration fees nearly doubled. How is that fair?

I think a hybrid is an extra $70 and an electric car is an extra $140. Those vehicles cause wear and tear to infrastructure but pay less or no fuel tax. It seems fair to me to try to recapture that revenue in registration fees.

[Yabbhadou]

prior to the invention of the combustion engine gasoline was burned since it is a waste product of the petroleum process. The market prices to what it can bear. people are still buying it at these prices so demand is still there. If you owned a gas station would you lower it while people are still buying it at 2 dollars? No you would not. You would price it accordingly to what the market would bear. i can squeeze a tank for 1 month or longer.

[FIGHTONSC]

Sorry Yabbhadou,

I respectfully disagree with your logic! Gasoline is just like food to most people...we can't live without it, especially in Idaho where traveling great distances is common and fuel for ranching and farming is a daily proposition not a whim or something I can "squeeze" for a month!

In case you have not noticed, there is a glut of refined fuel and crude throughout the U.S. and the world. Prices of crude fell to 12 year lows today, which was not reflected in our stock market due to the MLK holiday.

There is no demand, period! The oil companies have learned how to screw us both ways!

Please read the Wall Street Journal article mentioned in my previous thread above for more succinct clarification about what is really happening.

Best regards,

Jeff

[Yabbhadou]

The gasoline you are buying was oil that was purchased months ago and processed into gasoline. Oil trades on a futures market. So this 2 dollar gasoline was from oil purchased long ago, refined into gasoline and shipped. The price you saw today for oil is for a supply that has not even been delivered yet.. So Gas prices reflect what they paid months ago. Not the sub 30 dollar which you see now. Currently, gasoline is trading for 1.0248 per gallon on the futures market, you can get this price per gallon if you buy 42,000 gallons and accept delivery. I do not have any room for 42k gallons or the 50k to waste on it, so I will have to pay the 2 dollars per gallon.

Here is finviz with current price. Futures Gasoline RBOB Chart Daily

If you look at this chart there is a good chance they paid a great deal more than the 1.0248. Hope this helps. every wednesday a petroleum report comes out with current supply builds or deficits. based upon this the price will go up or down. You must look at gasoline inventories not just crude oil. So the issue of price is not so simple.

[FIGHTONSC]

Today's Idaho Statesman states that Idaho has the 8th highest gas prices in the nation on page 2 and is $0.17 cents higher per gallon than last year on this date, even though crude oil prices and demand have plummeted.

Go figure!

Regards,

Jeff