Price hikes and reasons they are being implemented

[Racket_Man]

Cigarette prices are increasing by $1something this January.

yup that is correct. here in ol' WI the price is going up via a sin tax to the tune of $1.25 per pack. Gov. Doyle signed the bill about a month or two ago -- Sept I believe. I guess Wi as well as all of the other states blew through that tobacco settlement money in a big hurry.

[Jack7957]

There is NO WAY IN HELL the gas price will ever come down to what it was before the U.S.A.'s "war on terror" because the gas companies can use the excuse of "Oh but the world is running out of oil".

Actually gas prices started going up right after GW took office. I don't have hard proof, other than I remember back in the spring of 2001 gas going up to around $1.35/gallon and more, because I had to decide which vehicle I had at the time to drive to my job, to save money on gas.

[protege]

Let's not turn this into a political debate, OK? With that said, much of the price increase on oil is due to increasing demand from places like China. Their economy is taking off, and they're needing more to (pardon the pun) fuel it. Another factor is the oil speculators. These fools, along with the news media are driving up prices as well. Everybody's trying to get in on it...driving prices up further. Throw in the gas taxes that Washington wants to implement and it goes up further.

I find it somewhat amusing that Europeans are complaining about how "cheap goods" are flooding their economies. Japan did the same to us in the 1950s and '60s. It's unfortunate, but because everyone wants low-prices, it happens.

[Captain Kidd]

Another thing about the oil speculators, unlike a lot of stuff that is speculated on. Oil bought on speculation has to be stored when it arrives. there's only so much storage available. Once they max that out, something's going to have to give. Which might mean a plunge in oil prices. Or not. These things just can't be predicted that easily.

[Geek King]

Looking at the average US prices adjusted for inflation, only in the last couple of years has the price of gas even approached the price in the late 1970's (big fuel shortage). Gas expedatures remain a much smaller percentage of total income spent than during that time period, as the price per gallon did not match inflation for a long period.

Just a little nasty perspective when I feel like complaining about it.

[Rahmota]

Protege:

Let's not turn this into a political debate, OK?

Fine with me that is why Fratchign was invented isn't it?

[symposes]

I figured America had almost no local production anymore, what with places like the automotive factories, closing shop and relocating to mexico and china.

[Gurndigarn]

I figured America had almost no local production anymore, what with places like the automotive factories, closing shop and relocating to mexico and china.

There's actually quite a bit. It just doesn't take as many workers (that's the automated factory bit), and it's generally higher-end stuff, especially business-to-business sales stuff, which doesn't get as noticed as cheap consumer goods. IE, the crane that's constructing that building beside the highway is probably made in the US. The hard hats and steel-toed boots the workers are wearing... maybe. The stuff you buy at the mall? Probably not. But which do you get close enough to to see the "Made in China" sticker on?

[Captain Kidd]

Here's a graphic by the NY Times and hosted on the CA state website. March 1981 had an adjusted cost of $3.31/gal for regular. As of May 22, 07, the price average was $3.22.

[tphillip]

much of the price increase on oil is due to increasing demand from places like China. Their economy is taking off, and they're needing more to (pardon the pun) fuel it. Another factor is the oil speculators.

China's economy is taking off so fast there are parts deeper inland experiencing gas shortages like the US did in the 70s.

There's many factors causing prices to go up:

• China and India economies are booming and increasing demand
• The US hasn't built a refinery in 40 years. Our demand has grown, but our ability to supply has been stagnant
• The US has many different "formulas" for gas. You can't ship gas from one part of the US to another.
• Oil is used to make plastics and other products. That demand also strains the available supply

I remember a quote from the oil minister of Saudi Arabia saying there's no point in pumping out more oil because the US can't process any faster than it already is. And he's right.

Blaming Bush, oil companies, or any or conspiracy theory of the day is simply wishful thinking and denial of the world forces that are causing oil prices to rise world wide. Hell, if you want to work a conspiracy theory work on this: The Strategic Oil Reserve, which is maintained by the US government for use in times of war, was filled when oil was less than $30/barrel. How much money do you think the government would make if it turned around and sold it at today's market prices? Why won't the government do so and fill the reserver when (No if) oil prices come down?

[Captain Kidd]

• The US has many different "formulas" for gas. You can't ship gas from one part of the US to another.

And those formulas also change by season too so you can't build up a huge supply either.

[tphillip]

And those formulas also change by season too so you can't build up a huge supply either.

Yup. It's incredibly silly how we handle gasoline production and distribution in the US. And most "solutions" to the problem is simply more of the same. People who think like that always forget the first rule of holes.

[Rahmota]

Blaming Bush, oil companies, or any or conspiracy theory of the day is simply wishful thinking and denial of the world forces that are causing oil prices to rise world wide.

Well they certainly arn't helping things. Any company that makes a 6 BILLION dollar profit has got to be doing something illegal, immoral, indecent or all of the above.

One reaosn we need more governmetnal control over the oil companies and a greater invetment in development programs for alternative power sources including Bio-Fuels.

[tphillip]

Any company that makes a 6 BILLION dollar profit has got to be doing something illegal, immoral, indecent or all of the above.

At the risk of locking the thread...
I have yet to see a reasonable explanation why making a profit is illegal, immoral, or indecent. Many companies have to use that very same profit to grow and maintain their companies (Profit is what's left after operating expenses). Profit is what pays for research, new equipment, and additional jobs.

Hating profit for the sake of hating profit, or because it's unfair IMO is little more than jealousy.

One reaosn we need more governmetnal control over the oil companies and a greater invetment in development programs for alternative power sources including Bio-Fuels.

Right. More government control is needed because the government does its current job so well.

The government is unable to handle the simple task of registering vehicles via the DMV, so let's give them more control of more complex businesses and individual lives. I see that ending well.

[Broomjockey]

I thought from the start this thread should go to Fratching. The subject matter is pretty much perfect for there. But between the swipes at politics and capitalism, it's time to enforce a move over there. Thanks for keeping this polite, but if you want to continue, move to Fratching please.