Diesel Prices Are Going Up Really Fast

[Texas Clodhopper]

View attachment 12256
Here's my hybrid. 1,000 miles to the gallon. Tacking is a bitch though.

What about adding a steerable tag as a rudder? That may make tacking a little easier.

 

[sanda]

View attachment 12256
Here's my hybrid. 1,000 miles to the gallon. Tacking is a bitch though.

You have to go around the underpasses also, What about the power lines>

 

["EZ"]

$6.80 here yesterday in lovely Ca. Among other things this precludes travel, and thus tourism, in this state for me. I have enough in the tank to get to Nevada where it doesn't have the extra $1.80 Ca tax grab.

An effort to repeal or lower gas taxes here, even temporarily, was quickly defeated in favor some trivial rebate that wouldn't buy me 1/2 a tank and I will never see anyway.

So no worries - tank up in Nevada or Oregon on my way home so I can get back out of state on my next trip, and reject Ca tourism. At least any other fuel taxes and my travel related sales tax will go elsewhere.

Our Republican Governor took the $.30 State gas tax off for a few months to help hard working Georgians when it comes time to fill up at the pump. (CA adds $1.80????!!!!! ) I just voted in the State Primary election. Guess who I voted for?? You got it. Our current Governor Brian Kemp!!!! Long may he reign.

 

["EZ"]

Again though, the oil companies are setting the price. It doesn’t seem in their or their shareholders interest to force people to electric.

I think you misunderstand how oil (and gas) pricing works. The MARKET sets the price not the oil companies. Otherwise the price of a barrel of oil would have never gotten back down to less than $20 a barrel a few years ago. Right? Oil companies were losing money like crazy at those prices. Why didn't they just raise the price? Here's why............quoted from Commodities.com.

"What Drives the Price of Oil? Crude oil is extracted from underground oil reserves. In Brent crude oil’s instance, these reserves are under the seafloor, while WTI crude oil is extracted from reserves located under dry land. That’s the first component of oil prices — the extraction process and machinery required. Aside from the physical groundwork of gathering and processing oil, market regulations are the true price-determinants of crude oil spot prices.

Crude oil market regulations control supply and dynamics, thus price, based on factors like:

Politics: Oil availability and the necessary means to access that oil may result in political conflict between domestic and international jurisdictions.

Social & Environmental: Increasing awareness of human behavior’s influence on the environment, resulting in stricter benchmarks to justify the use of long-life-cycle fossil fuels like crude oil. OPEC is an example of an influential organization in the crude oil space.

Economical: Depending on the influence of powerful individuals behind oil supply chains, market regulations may be subject to seemingly unwarranted change, causing violent price swings.

The other main factors that affect oil prices include: Supply and Demand As with all commodities, oil prices are driven by supply and demand. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures. The global oil monopoly somewhat limits the influence of any one particular oil producer to completely dominate the world market. New Resources From time to time new oil resources come online — like Canadian oil sands or US shale oil — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. Extraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments.

Consumption Patterns The International Energy Agency (IEA) predicted increasing global demand for crude oil back in 2019, due to: An increasing world population Increased energy consumption in developing countries Growth in transportation, petrochemical, and aviation industries. Even though Organisation for Economic Cooperation and Development (OECD) countries are reducing their road transportation oil consumption on a per-vehicle basis, the growing automobile fleet in developing countries far outpaces such reductions.

Global Events Many unforeseen events can also impact the price of crude oil, driving it up for down. For example: After the Iranian revolution in the late 1970s, the price of oil rose sharply. The 2020 outbreak of the COVID-19 pandemic saw crude oil plummet to a negative price per barrel. The IEA expects crude oil consumption to be much lower in 2020. The Russia-Ukraine war has impacted oil prices dramatically in 2022. Russia is a major global oil producer (12 % market share in 2020) & the EU’s main supplier of crude oil.

Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices. The increased focus on renewable energy is already accelerating such changes.

Read more at: Live Crude Oil Spot Prices (Brent & WTI) + Historical Charts - Commodity.com

 

[Rich W.]

always appreciate an economics lesson.

 

[Voyageurs]

"What Drives the Price of Oil? Crude oil is extracted from underground oil reserves. In Brent crude oil’s instance, these reserves are under the seafloor, while WTI crude oil is extracted from reserves located under dry land. That’s the first component of oil prices — the extraction process and machinery required. Aside from the physical groundwork of gathering and processing oil, market regulations are the true price-determinants of crude oil spot prices.

Crude oil market regulations control supply and dynamics, thus price, based on factors like:

Politics: Oil availability and the necessary means to access that oil may result in political conflict between domestic and international jurisdictions.

Social & Environmental: Increasing awareness of human behavior’s influence on the environment, resulting in stricter benchmarks to justify the use of long-life-cycle fossil fuels like crude oil. OPEC is an example of an influential organization in the crude oil space.

Economical: Depending on the influence of powerful individuals behind oil supply chains, market regulations may be subject to seemingly unwarranted change, causing violent price swings.

The other main factors that affect oil prices include: Supply and Demand As with all commodities, oil prices are driven by supply and demand. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures. The global oil monopoly somewhat limits the influence of any one particular oil producer to completely dominate the world market. New Resources From time to time new oil resources come online — like Canadian oil sands or US shale oil — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. Extraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments.

Consumption Patterns The International Energy Agency (IEA) predicted increasing global demand for crude oil back in 2019, due to: An increasing world population Increased energy consumption in developing countries Growth in transportation, petrochemical, and aviation industries. Even though Organisation for Economic Cooperation and Development (OECD) countries are reducing their road transportation oil consumption on a per-vehicle basis, the growing automobile fleet in developing countries far outpaces such reductions.

Global Events Many unforeseen events can also impact the price of crude oil, driving it up for down. For example: After the Iranian revolution in the late 1970s, the price of oil rose sharply. The 2020 outbreak of the COVID-19 pandemic saw crude oil plummet to a negative price per barrel. The IEA expects crude oil consumption to be much lower in 2020. The Russia-Ukraine war has impacted oil prices dramatically in 2022. Russia is a major global oil producer (12 % market share in 2020) & the EU’s main supplier of crude oil.

Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices. The increased focus on renewable energy is already accelerating such changes.

Read more at: Live Crude Oil Spot Prices (Brent & WTI) + Historical Charts - Commodity.com

Good write up. Thank you.

 

[FL-JOE]

I would use caution getting all excited when your State decides to drop or suspend their gas/fuel tax. We are heading up to Illinois for a visit with family. So far I will be able purchase my diesel about as cheap as anywhere in the U.S. while there. This is mainly due to them suspending their fuel taxes.

The issue is that Illinois has some of the roughest roads plus thousands of bridges that need replacing. Cutting off that revenue stream for 6 months or a year is just going to make matters worse.

Of course they are about the same as California. If you compare those two states budgets to how someone would run a household budget, it would be like using a 20% interest charge card to pay for groceries every month and then always making the minimum payment and bragging about it.

 

[Dona40]

I think you misunderstand how oil (and gas) pricing works. The MARKET sets the price not the oil companies. Otherwise the price of a barrel of oil would have never gotten back down to less than $20 a barrel a few years ago. Right? Oil companies were losing money like crazy at those prices. Why didn't they just raise the price? Here's why............quoted from Commodities.com.

"What Drives the Price of Oil? Crude oil is extracted from underground oil reserves. In Brent crude oil’s instance, these reserves are under the seafloor, while WTI crude oil is extracted from reserves located under dry land. That’s the first component of oil prices — the extraction process and machinery required. Aside from the physical groundwork of gathering and processing oil, market regulations are the true price-determinants of crude oil spot prices.

Crude oil market regulations control supply and dynamics, thus price, based on factors like:

Politics: Oil availability and the necessary means to access that oil may result in political conflict between domestic and international jurisdictions.

Social & Environmental: Increasing awareness of human behavior’s influence on the environment, resulting in stricter benchmarks to justify the use of long-life-cycle fossil fuels like crude oil. OPEC is an example of an influential organization in the crude oil space.

Economical: Depending on the influence of powerful individuals behind oil supply chains, market regulations may be subject to seemingly unwarranted change, causing violent price swings.

The other main factors that affect oil prices include: Supply and Demand As with all commodities, oil prices are driven by supply and demand. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures. The global oil monopoly somewhat limits the influence of any one particular oil producer to completely dominate the world market. New Resources From time to time new oil resources come online — like Canadian oil sands or US shale oil — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. Extraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments.

Consumption Patterns The International Energy Agency (IEA) predicted increasing global demand for crude oil back in 2019, due to: An increasing world population Increased energy consumption in developing countries Growth in transportation, petrochemical, and aviation industries. Even though Organisation for Economic Cooperation and Development (OECD) countries are reducing their road transportation oil consumption on a per-vehicle basis, the growing automobile fleet in developing countries far outpaces such reductions.

Global Events Many unforeseen events can also impact the price of crude oil, driving it up for down. For example: After the Iranian revolution in the late 1970s, the price of oil rose sharply. The 2020 outbreak of the COVID-19 pandemic saw crude oil plummet to a negative price per barrel. The IEA expects crude oil consumption to be much lower in 2020. The Russia-Ukraine war has impacted oil prices dramatically in 2022. Russia is a major global oil producer (12 % market share in 2020) & the EU’s main supplier of crude oil.

Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices. The increased focus on renewable energy is already accelerating such changes.

Read more at: Live Crude Oil Spot Prices (Brent & WTI) + Historical Charts - Commodity.com

Sounds to me like we need another pandemic. Come on Fauci, make it happen!

 

[Fish]

I would use caution getting all excited when your State decides to drop or suspend their gas/fuel tax. We are heading up to Illinois for a visit with family. So far I will be able purchase my diesel about as cheap as anywhere in the U.S. while there. This is mainly due to them suspending their fuel taxes.

The issue is that Illinois has some of the roughest roads plus thousands of bridges that need replacing. Cutting off that revenue stream for 6 months or a year is just going to make matters worse.

Of course they are about the same as California. If you compare those two states budgets to how someone would run a household budget, it would be like using a 20% interest charge card to pay for groceries every month and then always making the minimum payment and bragging about it.

I live in IL, got back end of April. I read about the tax being suspended.

Not seeing it at the pump. I think all they did was forgo the automatic increase if they even did that.
Since my pusher is still in Sarasota I haven't had to buy any diesel but gasoline is just as high as every state I came through to get home.

 

[Fish]

I live in IL, got back end of April. I read about the tax being suspended.

Not seeing it at the pump. I think all they did was forgo the automatic increase if they even did that.
Since my pusher is still in Sarasota I haven't had to buy any diesel but gasoline is just as high as every state I came through to get home.

Looked into it, I was correct and no gas taxes have been abated. The "ruling party" passed a law a few years ago to automatically increase the gas tax tied to inflation every year so they wouldn't have to make any more unpopular votes on increasing it.
This budget simply eliminates this year's increase. All the existing fuel taxes remain the same.

Yet this administration is promoting it as a tax cut and ordering the notice of "suspended fuel tax" to be put on every pump, or the station owner faces fines, in an election year.
Several lawsuits filed over this.

Only in IL could they simply not increase taxes and then advertise it as a tax cut.