gas Pump price to jump 20 cents next 2-3 weeks:

[WhiteFeather]

Your car or truck is not the only one that going to get the oil and lube job over the holiday season IF this article is correct.

http://www.reuters.com/article/domes...rpc=22&sp=true


WASHINGTON (Reuters) - U.S. consumers could pay record gasoline prices for the upcoming Thanksgiving holiday with pump costs expected to climb another 20 cents over the next two to three weeks, the government's top energy forecaster warned on Monday.

Guy Caruso, who heads the U.S. Energy Information Administration, said not all of the recent jump in crude oil prices has been reflected in motor fuel costs which now top $3 a gallon in many parts of the country, about 80 cents more than a year ago.

"We haven't seen the full pass-through (of high oil prices) yet," Caruso told reporters at a briefing on oil market conditions held at Energy Department headquarters. "I would say what's in the pipe right now (for gasoline) is about another 20 cents."

If the projected gasoline price materializes it would be the most consumers have ever paid to fill up at Thanksgiving and could break the all-time high of $3.22 a gallon set last May.

The national average retail pump price has already jumped by 25 cents since mid-October, reflecting soaring crude oil costs, which for U.S. oil hit a record $98.62 a barrel last week.

The price of crude accounts for about half the cost of making gasoline.

So far, healthy gasoline imports from Europe and weaker driving demand for this time of the year has helped soften some of the price spike, Caruso said.

Caruso said high prices are the result of strong global oil demand and tight supplies. "There's very little cushion in the market ... consumption outpacing production," he said. "We've seen steadily declining (oil) inventories."

OPEC ministers are scheduled to meet in early December to review their oil policy. Karen Harbert, the assistant energy secretary for policy and international affairs, said the Bush administration has not received any messages from OPEC officials on whether the group will increase output.

"We hope they will take action when it's necessary to ensure there is a much more calm and mutually beneficial (oil) marketplace," she told reporters at the same briefing.

Caruso warned that if the group does not boost oil production levels, crude oil prices will stay "well above" $80 a barrel and push gasoline costs higher during next spring's busy driving season.

[slicknick131]

Aw, goddammit. Why did I think getting an SUV was such a hot idea?

[kimbercdp]

Got to love the drive by media. I wish I could see 2-3 weeks in the future!

[Emptymag]

I read the first few lines, then it became blah - blah - blah...

I've heard those "shocking" reports before... never really happens.
When it happens, I'll believe it.
If it happens, then what? Yeah, I'll put gas in the truck like everyone else does.
Less ammo for me. Less money for lunch. Less money for everything.
Remind me again... "No blood for what?"

[DaveM55]

And yet life goes on.

In a six months we'll be paying $4.00 a gallon, and in a year $5.00 a gallon. And we'll keep paying and paying and...

[PA Highlander]

You know these gas prices are really getting to be a PITA!

Every time they go up we have no choice but to pay the price. Petra and I commute a combined 88 miles a day - I work 22 miles away in one direction and she works 22 miles away in the opposite direction. So, we do like EM - cut out other things like Group Shoots and extra ammo to keep the fleet fueled up.

The average working class person can do little to offset the gas prices too. We're rural, so public transportation doesn't exist. Hopefully Petra finds a better paying job and even better in the same town as mine.

[LastManOut]

• The "real" price of gasoline: Gasoline cost 27 cents a gallon in 1949 compared to around $3.00 today.* How has the relative cost of buying gas changed over the last 58 years? Presented here are two tables computing the annual "real" cost using our five indicators, one in 2006 dollars, the current number used for real GDP, and the other in 1949 dollars.While the two tables show the same trends, they do give a different perspective.
  Using the 2006 table and the CPI and the GDP deflator, we see that gasoline was most expensive in 1980 and 1981 and the cheapest in 1998 and 1999. Today, the real price using these two measures is between 30 to 45% higher than the 58-year average for them.
  As a share of the (approximate) Consumer Bundle, the story is even more striking. In 1981, a gallon of gas took 60% more out of the average consumer bundle than it did in 2006. Thus in 2006 prices, the relative price of gas in that year was $3.86.
  The other indices tell a different story. Let us look at relative cost to an unskilled worker to fill up using 1949 dollars. That year the 27 cents it cost for a gallon of gas, took a certain share of the worker's wage. The interesting question is, has the cost as a share or percent of the worker's wage increased or decreased over time? The table shows that for the wage rate and price of gasoline in other years, this cost has fallen. Since wages have increased faster than the price of gasoline, by 2006 an unskilled worker spends only two-thirds as much, as a percent of wage, for a gallon of gasoline than the 1949 worker. The table shows that the $2.59 a worker paid in 2006 would be comparable to only 18 cents (in 1949 prices) if measured as a "share" of the wage.
  When we use the GDP per capita, the cost has fallen faster. Looking at the table shows that a gallon of gasoline costs around 11 cents a gallon (in 1949 prices) if measured as a "share" of the GDP per capita. This is because in 1949, 27 cents was .015% of per capita GDP, while in 2006, $2.59 was .006%.
  Finally, looking at what share of GDP of gasoline, we see that in 1949 prices, it is about 4 cents. This means that a gallon gasoline was a seven times larger share of output in 1949 than it is today.
  * The nominal price of gasoline can be found at found at http://www.eia.doe.gov/emeu/aer/petro.html For the table used here, I used the price of a gallon of leaded regular from 1949 to 1976, the average of the price of leaded regular and unleaded regular from 1977 to 1990 and the price of unleaded regular from 1991 to 2006.

[God's Country]

WASHINGTON (Reuters) - U.S. consumers could pay record gasoline prices for the upcoming Thanksgiving holiday with pump costs expected to climb another 20 cents over the next two to three weeks, the government's top energy forecaster warned on Monday.

Just in time for that gift giving season. You guys didn't know Exxon was on your shopping list.

[brewguy]

I don't really care about the relative price.

When my budget is stup on $3.00 gas and it magically goes up to $3.50 in a day i have a hard time adjusting.

• The "real" price of gasoline: Gasoline cost 27 cents a gallon in 1949 compared to around $3.00 today.* How has the relative cost of buying gas changed over the last 58 years? Presented here are two tables computing the annual "real" cost using our five indicators, one in 2006 dollars, the current number used for real GDP, and the other in 1949 dollars.While the two tables show the same trends, they do give a different perspective.
  Using the 2006 table and the CPI and the GDP deflator, we see that gasoline was most expensive in 1980 and 1981 and the cheapest in 1998 and 1999. Today, the real price using these two measures is between 30 to 45% higher than the 58-year average for them.
  As a share of the (approximate) Consumer Bundle, the story is even more striking. In 1981, a gallon of gas took 60% more out of the average consumer bundle than it did in 2006. Thus in 2006 prices, the relative price of gas in that year was $3.86.
  The other indices tell a different story. Let us look at relative cost to an unskilled worker to fill up using 1949 dollars. That year the 27 cents it cost for a gallon of gas, took a certain share of the worker's wage. The interesting question is, has the cost as a share or percent of the worker's wage increased or decreased over time? The table shows that for the wage rate and price of gasoline in other years, this cost has fallen. Since wages have increased faster than the price of gasoline, by 2006 an unskilled worker spends only two-thirds as much, as a percent of wage, for a gallon of gasoline than the 1949 worker. The table shows that the $2.59 a worker paid in 2006 would be comparable to only 18 cents (in 1949 prices) if measured as a "share" of the wage.
  When we use the GDP per capita, the cost has fallen faster. Looking at the table shows that a gallon of gasoline costs around 11 cents a gallon (in 1949 prices) if measured as a "share" of the GDP per capita. This is because in 1949, 27 cents was .015% of per capita GDP, while in 2006, $2.59 was .006%.
  Finally, looking at what share of GDP of gasoline, we see that in 1949 prices, it is about 4 cents. This means that a gallon gasoline was a seven times larger share of output in 1949 than it is today.
  * The nominal price of gasoline can be found at found at http://www.eia.doe.gov/emeu/aer/petro.html For the table used here, I used the price of a gallon of leaded regular from 1949 to 1976, the average of the price of leaded regular and unleaded regular from 1977 to 1990 and the price of unleaded regular from 1991 to 2006.

[God's Country]

• The "real" price of gasoline: Gasoline cost 27 cents a gallon in 1949 compared to around $3.00 today.* How has the relative cost of buying gas changed over the last 58 years? Presented here are two tables computing the annual "real" cost using our five indicators, one in 2006 dollars, the current number used for real GDP, and the other in 1949 dollars.While the two tables show the same trends, they do give a different perspective.
  Using the 2006 table and the CPI and the GDP deflator, we see that gasoline was most expensive in 1980 and 1981 and the cheapest in 1998 and 1999. Today, the real price using these two measures is between 30 to 45% higher than the 58-year average for them.
  As a share of the (approximate) Consumer Bundle, the story is even more striking. In 1981, a gallon of gas took 60% more out of the average consumer bundle than it did in 2006. Thus in 2006 prices, the relative price of gas in that year was $3.86.
  The other indices tell a different story. Let us look at relative cost to an unskilled worker to fill up using 1949 dollars. That year the 27 cents it cost for a gallon of gas, took a certain share of the worker's wage. The interesting question is, has the cost as a share or percent of the worker's wage increased or decreased over time? The table shows that for the wage rate and price of gasoline in other years, this cost has fallen. Since wages have increased faster than the price of gasoline, by 2006 an unskilled worker spends only two-thirds as much, as a percent of wage, for a gallon of gasoline than the 1949 worker. The table shows that the $2.59 a worker paid in 2006 would be comparable to only 18 cents (in 1949 prices) if measured as a "share" of the wage.
  When we use the GDP per capita, the cost has fallen faster. Looking at the table shows that a gallon of gasoline costs around 11 cents a gallon (in 1949 prices) if measured as a "share" of the GDP per capita. This is because in 1949, 27 cents was .015% of per capita GDP, while in 2006, $2.59 was .006%.
  Finally, looking at what share of GDP of gasoline, we see that in 1949 prices, it is about 4 cents. This means that a gallon gasoline was a seven times larger share of output in 1949 than it is today.
  * The nominal price of gasoline can be found at found at http://www.eia.doe.gov/emeu/aer/petro.html For the table used here, I used the price of a gallon of leaded regular from 1949 to 1976, the average of the price of leaded regular and unleaded regular from 1977 to 1990 and the price of unleaded regular from 1991 to 2006.

I think you need to consider the fact that most people drive much farther to work these days, plus 2 cars, and 2 workers. That coupled with the fact that we are a wasteful society. When I was young mom went shopping once a week, and didn't run out 12 times a week for bread and milk, not to mention the endless after school activities today. Nobody stays home anymore. We live in our vehicles and just sleep in our 400,000sq ft homes. I frankly don't get it, but that's the way we are today. My brother in law will jump in his truck about every couple hours and drive 3 miles back and forth to get a cup of coffee instead putting a coffee pot in his garage. It's what he likes.