Friday, October 05, 2012

Wonderful. Just fucking wonderful.

"The squeeze is on, and people are doing desperate things," is how one independent described the situation in California. As Bloomberg reports, a shortage of supply along with drastically higher wholesale prices of gasoline has caused 'mom-and-pop' gas stations to close down as their margins are destroyed. Even larger firms, such as CostCo, are closing sites due to the shortages as Los Angeles and San Francisco gas prices jump 30-45c in a few days.

As one owner noted: "I can get gas, but it’s going to cost me $4.90 a gallon, and I can’t sell it here for $5," and another added that "we’re going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. There’s no sense in staying open. The profit margins are so low it’s not worth it."

The problem is likely a short-term one according to some as the temporary shutdown of local refineries (after Chevron's Richmond refinery fire) and maintenance is completed but it is clear that even a short-term blip in wholesale prices (whether driven by local supply or global geopolitics) causes pain as it would appear we are close to 'inelastic' levels of demand.

California gas has not fallen as the national average has...

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I haven't seen any stations closing around here but I'm paying about $4.35 a gallon today. Tomorrow may be higher. I have seen a couple places that's selling gas for $4.05 but they're generally in neighborhoods that you have to pump your gas with a drawn weapon so I pass on those unless the little yellow 'get gas or start walking' light has been on for a few miles. Saving a few bucks ain't worth having to shoot somebody and then having to deal with the law.
This is the only state I've ever lived in that you keep your tank topped off if you can in case gas prices spike overnight. I've filled up one week for 45 bucks and then a week later at the same station pay $55 and that's with a 14 gallon tank. It ain't unusual to pull up to the pump and see where the previous customer paid $125 for a fill up. Let me tell you how bad it is - my gasoline bill is at least $60 a week for my truck and $25 a week for Lisa's jap car. And that's if we don't go anyplace out of the ordinary.
It's gotten so bad lately that for me to go up to the hills to shoot or fish, it's gonna cost me a fifty dollar bill. Add in the cost of ammo, lunch, etc. and my day of 'free entertainment' just cost me $100 US. Let me put it another way: For the past 18 years, my pay raises at work have not been able to keep up with the price increases of gasoline much less the rest of the cost of living.

13 comments:

Anonymous said...

Obamney has made some noise about increasing production. Check out this U N Treaty of the sea's , in it we will be prohibited from offshore and some other type's of drilling. These two faced bastard's , it has already passed the house . If the senate doesn't stop it we're screwed. ( Got a lotta hope there ! ).

Glenn B said...

Yep that sure is high. We have been paying around $4.19 a gallon for regular up my way for weeks now. Some gas stations up here though have hit $4.359 as can be seen here (at least at the time I wrote this):

www.automobilemag.com/31/new_york/nassau/mineola/gas_prices.html

They show a current .26 per gallon difference, from highest to lowest prices, offered among the 20 listed gas stations.

Remember, there is one consoling thought in all of this - it is all GWB's fault. Oh how I miss him as compared to the current shithead in power!

All the best,
GB

Brian said...

I had an old F250 with a 351 that got 11 MPG I sold it this spring right after I bought my Hyundai Elantra.

I got the Elantra for 15.8k. I won't use corn gas in the Elantra and I am getting a solid 37 MPG, combined city hwy driving.

At 4 bucks a gallon, the F250 was costing me 500 a mo. to drive. The Elantra costs me 100 a mo to drive. The net savings is 400. The car costs 250 a mo, so I bought a new car and I saved 150 a month.

In England they pay 8 bucks a gallon. A friend of mine from England said pickups are virtually non existent. He couldn't believe how cheap gas is here.

timbo said...

Never forget that most of the price of gasoline is tax. Gas stations make most of their profits from selling you candy bars, smokes, and coffee.

The higher the price of fuel goes, the more money the government takes in. Instead of helping folks out, the gov takes advantage of us. As prices go up, the tax percentage should go down, instead of compounding the problem that businesses and consumers face. It's adding insult to injury!

angrymike said...

This year my 67 chevelle SS is staying in the shop, since were gonna paint it this spring-summer,I don't see it road ready till 2014, then if the price doesn't come down I'll probably take it to an auction. Fuck it, that 427 only gets 3-6 MPG, I won't be able to drive it if this shit keeps up..........

RegT said...

That Richmond refinery fire was several freakin' years ago, so that dog won't hunt anymore as a reason for lower production.

California is choking to death on its own waste - the shithead Leftists/Marxists who run the state. Add the damage the Feds are doing, and you might as well pack it in (not like they do in San Francisco, though ;-)

I've got two motorized bicycles that will only do 30 MPH but get almost 200 mpg (that's not a typo - two hundred). Gonna be time to get them out of storage pretty soon.

michigan doug said...

i filled down in toledo yesterday for 3.55/gal. and it still sucked. the big earred fucker wanted to raise energy prices, i guess he got that done. fuck 0bama

Swamprat said...

I don't know what the deal is, but here in centeral Fl. I just gassed up today, and it was $3.54 a gal for regular.

Hay Blue, I asked Wirecutter if he knew what happened to Sarge, He told me to check with you. Sarge hasen't posted on "A herd of Turtles" since Sept 5th. Just hopin the dude is Ok.

Anyway, Hope your gas comes down gentlemen.

Ya can email me Blue, at Swamprat66@yahoo.com
Glad to be a part of your site.
Your link to email ya in your profile, says it's set up wrong, just FYI.

wirecutter said...

Biggest problem with our gas prices is it has to be shipped in by tanker. No pipelines from the midwest, even through the lower elevation desert. Coumpounding the problem is the ecomaniacs here demand that we use a cleaner blend, so it has to be refined even further. AND THEN, we have to burn an even more special blend in the summer.

Sara said...

Mike, I've got a 72 that didn't get a whole lot of road time this summer. Bad enough it costs me over 500 a month for gas for my suburban. But yeah, my dumb ass keeps paying it, I just can't give it up yet, I love it. And I can't load kids, groceries, dog, etc all into a car, everything is just not going to fit. Besides, I am in MN, you have to have 4 wheel to pull out all the little efficient rollerskates that hit the ditch all winter.

PMain said...

Filled up last night after hearing that prices were going up. My usual station was closed for the day, but listed $5.19 for regular. Hit another close by & open, $4.41. Went home picked up the better half's car to fill up, was raised to $4.45 at same station & had to wait for the computers to reboot.

Checked this morning & it was already 4.5? something.

Cheesy said...

Topped everything off @ $348 /gal at Volero today.
I'm sure there will be a ripple effect so everyone will eventually feel the pain.

RichardR said...

Personally, I believe it's the "speculators" on Wall Street that's driving the prices up....and those cocksuckers take cabs to work!