gas going up

[sittall]

Just went to Costco today. Gas was $2.48, 20 cents more than two weeks ago! Costco is usually a harbinger of future gas prices. Soon as I reached Hilo I filled up with gas at $2.34. Doubt we will see this price again for a while. When I reached Pahoa, gas was $2.36.

May I suggest you get gas ASAP if you want to save money?

[macuu222]

Oil is still down where it was when gasoline at Costco in Kona was $2.06. So what else has changed to cause a price increase on gasoline?

Maybe the cost of doing business has increased? That's what Young Brothers has done the first of this year...They added a 17% charge for the increased costs of doing business in the islands...even though they "reduced" their fuel surcharge last year.

[Guest]

This could be a sign that the economy is going to turn around, but I think not.
There is speculation that oil will go to $20/ barrel.

My customers in the exploration industry are scared.

The demand will continue to plummet as more and more lay-offs happen.

If the Feds raise taxes on employers and corporations, we'll wind up with higher prices and fewer people working.

It looks like Israel is going to cease fire and that might help drive prices down.

We're in a pickle.

[carmel123]

Don't worry like that woman said when she was being interviewed about Obama being elected. If I remember correctly she said since Obama got elected she wont have to worry about the price of gas, rent payment or her utility bills. B.O. (not T.O. - if you are a Dallas fan) will take care of everyone. "No problems mon"

[PaulW]

Oil can't keep going down, just like it couldn't just keep going up and up.
There's a happy medium and it'll swing back and forth over it.
Good thing too, or we'd get deflation.

[Guest]

Oil prices will keep tanking if the economy tanks and there is no (more than normal) instability in the middle east, or war threats in general.
http://finance.yahoo.com/news/Oil-falls-...00050.html

Oil should be 18 bux per barrel if its was actually priced at its worth.

Why gas prices are are raising in the face of lowering oil prices is indicative of traders speculating on something we are not privy to.

[StillHope]

Couldn't agree more. The game is on the highest level.
All we can do is talk.
May be Mr.O can do more than that.

[Bob Orts]

Sigh[V]

The price of gasoline is a reflection of the price the distributor charges the retail seller. The price of crude is the price the supplier charges the refinery. All along the line prices can be adjusted like any other commodity.

If someone wanted the cost of their finished product to rise even when there is a glut of the raw material, they simply hold back availability. If they want the price to fall when the raw material is high, flood the market with stored inventory.

Gasoline is a retail commodity, just like orange juice, X-Box, cabbage, or underwear. The fact the we placed so much need on it is our fault.

As the current situation stands, the price of crude oil is low because the refineries and speculators have little need for it. The refineries are buying the low price oil but holding much in reserve while cutting production. The distributors are no longer keeping the tanks half full but instead only keeping an as needed supply on hand. The result is the refined product isn't in storage but purchased as available. That means higher gasoline prices at the pumps. Even the service station operators believe the bottom end of usage has arrived so they can halt price reductions knowing the consumption will remain at the current level and price by pure necessity. They even tack on a penny or two and still saw no decrease in sales. They will continue raising rates a penny here and there until consumption decreases, that will be their price point

There is no great secret conspiracy. I believe it’s a greater conspiracy that I can’t get the latest I-Phone at a lower price.