Web analyst expects a decline in gas prices

Jenison - If you can, a West Michigan man who tracks gas prices says wait a few days before you buy gasoline. Full Story
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Scott VanSlooten

Wayland, MI

#1 Apr 30, 2008
If oil prices have gone up $25.00 in 8 months then why have gas price rised so much more ??

At a $25.00 raise in price and a barrel holding 50 gallons then that is only $.50 per gallon why are we being charged around $1.50 more per gallon at the pump??
brian

Indianapolis, IN

#2 Apr 30, 2008
somebody needs to explain to me this. Back in the late 70's I remember the gas stations were lined up. I had my 1971 Cutlass and I was just a teenager at the time, lining up like everyone else. There was a public outcry at that time as well that we needed to do something at that time and not become dependant on foreign oil. It has been 30 years since then and in my mind NOTHING has changed. Somebody needs to help me understand on how this happens. The easy answer is too blame the oil companies and that someone is making alot of money, but this seems to be true now. Along with that, I now believe that lobbyist are lining the pockets of infuential people as well. This will have a ripple effect everyone. The price of goods sold on everything will go up due to transportation costs. The tourism industry of which we here in Michigan rely on will suffer. People will not be traveling far from now on due the the prices. For the fist time ever I am actually calculating gas cost on just regular trips to the mall or to visit grandparent etc. Think of the of the big tourism states like Florida they are going to get hit hard. The rebate we have coming if you were to save it just for gas will be wiped out in 4-6 months due to the prices. I can't believe how we send someone to the moon,shoot laser guided missiles from miles away and hit a one foot square, but can't figure out how to harvest our own oil. Just explain it too me, don't shove it under the rug and say we can't do anything. Why doesn't someone stand up and say I can't take it anymore. Why don't we have one day and just not pump any gas in protest, something to send a message.
Kevin

Detroit, MI

#3 Apr 30, 2008
And why is it that a couple weeks ago prices steadily dropped in the GR area about 15 cents over the course of a week as prices nationwide steadily inched upwards?

My theory: The supplier(s) in this area have a monopoly or near-monopoly, which allows them to gouge us a little more than they could if they had more competition. If they kept prices higher than the national average all the time, eventually competition would make its way here and correct the situation. By hiking prices in big jumps ($.10-$.20 in one day, which happens every 1-3 weeks around here), then letting it decline over a period of days or weeks, they boost the average price we pay, while keeping the competition at bay. When the price jumps, competitors can't have an immediate effect - it takes some time for them to get organized and start supplying the area. By the time they do, the price has declined back to a point where it doesn't make sense for them to come here.

And that's my theory. In any case, the whole oil/gas thing seems to be a pretty shady business all around. How else can you explain their profits increasing as the cost of their raw material rises? What other business works like that?

Since: Jul 07

Key West

#4 May 1, 2008

pdaudio ,you rock!!

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#5 May 1, 2008
Kevin wrote:
And why is it that a couple weeks ago prices steadily dropped in the GR area about 15 cents over the course of a week as prices nationwide steadily inched upwards?
My theory: The supplier(s) in this area have a monopoly or near-monopoly, which allows them to gouge us a little more than they could if they had more competition. If they kept prices higher than the national average all the time, eventually competition would make its way here and correct the situation. By hiking prices in big jumps ($.10-$.20 in one day, which happens every 1-3 weeks around here), then letting it decline over a period of days or weeks, they boost the average price we pay, while keeping the competition at bay. When the price jumps, competitors can't have an immediate effect - it takes some time for them to get organized and start supplying the area. By the time they do, the price has declined back to a point where it doesn't make sense for them to come here.
And that's my theory. In any case, the whole oil/gas thing seems to be a pretty shady business all around. How else can you explain their profits increasing as the cost of their raw material rises? What other business works like that?
Now THAT's a very reasoned out theory. I think it makes great sense. Just to add to that though, is what I believe is Psychology behind it. If they push gas up to say $3.75 like happened on Tuesday and then slowly let the price drop, then soon when gas is say $3.65, the consumer thinks "Wow, what a bargain!" And then the next time it goes up to $3.75 people say "Oh well it's been here before, at least it isn't higher". And then the cycle just repeats itself.
TDJensen

United States

#6 May 1, 2008
I travel a lot and I can tell you that when the price goes up in Michigan it goes up everywhere else, too. It isn't just a Michigan problem caused by greedy suppliers.

Also, the lower part of Michigan gets most of it's gasoline by pipe, not truck. Go north and there are no pipes....it's all trucked or shipped.
Sarah in Jenison

Detroit, MI

#7 May 1, 2008
Hurley35 wrote:
<quoted text>Now THAT's a very reasoned out theory. I think it makes great sense. Just to add to that though, is what I believe is Psychology behind it. If they push gas up to say $3.75 like happened on Tuesday and then slowly let the price drop, then soon when gas is say $3.65, the consumer thinks "Wow, what a bargain!" And then the next time it goes up to $3.75 people say "Oh well it's been here before, at least it isn't higher". And then the cycle just repeats itself.
Oh for sure! Remember last year when prices were $2.25 or so - early 2007? They jumped it to $3 and it went up and down for a while until we were happy paying $2.65-2.85 per gal. Where at the beginning of the year, we were only paying $2.25. The whole thing is crazy!
Brains

Big Rapids, MI

#8 May 1, 2008
brian wrote:
somebody needs to explain to me this. Back in the late 70's I remember the gas stations were lined up. I had my 1971 Cutlass and I was just a teenager at the time, lining up like everyone else. There was a public outcry at that time as well that we needed to do something at that time and not become dependant on foreign oil. It has been 30 years since then and in my mind NOTHING has changed. Somebody needs to help me understand on how this happens. The easy answer is too blame the oil companies and that someone is making alot of money, but this seems to be true now. Along with that, I now believe that lobbyist are lining the pockets of infuential people as well. This will have a ripple effect everyone. The price of goods sold on everything will go up due to transportation costs. The tourism industry of which we here in Michigan rely on will suffer. People will not be traveling far from now on due the the prices. For the fist time ever I am actually calculating gas cost on just regular trips to the mall or to visit grandparent etc. Think of the of the big tourism states like Florida they are going to get hit hard. The rebate we have coming if you were to save it just for gas will be wiped out in 4-6 months due to the prices. I can't believe how we send someone to the moon,shoot laser guided missiles from miles away and hit a one foot square, but can't figure out how to harvest our own oil. Just explain it too me, don't shove it under the rug and say we can't do anything. Why doesn't someone stand up and say I can't take it anymore. Why don't we have one day and just not pump any gas in protest, something to send a message.
back in the 1930's a car got around 25 MPG,it is now 2008 and I drive a 1998 4 cylinder Dodge Caravan that only gets 22 MPG at best. Go Figure.We dont need more oil,we need fuel Efficient vehicles.Big oil is in on it. They dont want the Technology or they loose money. Just like the fight for Cancer,if they had a CURE there would be no need for The American Cancer Society or Cancer Doctors. Why does Canada have a "Cure" for Cancer,because they pay for their Peoples health care.Sick people cost them money,Well people do not.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#9 May 1, 2008
Sarah in Jenison wrote:
<quoted text>
Oh for sure! Remember last year when prices were $2.25 or so - early 2007? They jumped it to $3 and it went up and down for a while until we were happy paying $2.65-2.85 per gal. Where at the beginning of the year, we were only paying $2.25. The whole thing is crazy!
And soon they'll push it up above $4.00 a gallon and then let it drop to like $3.90 and we'll all breath a sigh of relief that it isn't $4.00 a gallon anymore. It IS a game. A game of windfall profits and a dupe on the consumer.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#14 May 1, 2008
This guy has noticed the same thing that I have. Speedway is ALWAYS the first station to up their prices. Perhaps a boycott of Speedway stations would be in order here and see if that makes a difference. I know, probably impossible. People aren't going to boycott Speedway because they are often very conveniently located.
NOVACANE

Encino, CA

#15 May 1, 2008
I can tell you what gas prices are going to do too. Just go to CNBC and look at gasoline futures. Gas prices will continue to climb. United States oil production peaked in the 1970's. Mexico, United Kingdom have also peaked. Iraq production is lower than it was before the war. Nigeria continuously has oil disruptions caused by M.E.N.D. In the meantime, China and India's oil consumption is going higher with their massive population. United States oil consumption declined by less than 1/2 of 1% with these higher prices.
Basically, the world can pump about 85 mbpd. Until consumption declines, we will have higher prices. The way to curtail the problem that is not going away for a long long time is to have a gas tax to help reduce consumption.

“Taz say Hi”

Since: Jan 08

Holland,MI

#16 May 1, 2008
For a long time, gas prices rose on Thursday, s l o w l y dropped through Wednesday, and then jumped up again Thursday, often a few cents higher than the previous Thursday. That pattern appears to have shifted to jump up on Tuesday with a bigger increase each time.

For the people who like to cite European gasoline prices, they have public transit and long distance trains that are heavily subsidised by their gasoline taxes. They have a problem with overcrowded streets like we have in California so they are much more amenable to high gasoline taxes than the American public so they also use it to discourage car ownership.
Steve Dallas

Battle Creek, MI

#17 May 1, 2008
"Web analyst expects a decline in gas prices"

nobody said he was a good web analyst

Since: Oct 07

Big Rapids, MI

#18 May 1, 2008
NOVACANE wrote:
I can tell you what gas prices are going to do too. Just go to CNBC and look at gasoline futures. Gas prices will continue to climb. United States oil production peaked in the 1970's. Mexico, United Kingdom have also peaked. Iraq production is lower than it was before the war. Nigeria continuously has oil disruptions caused by M.E.N.D. In the meantime, China and India's oil consumption is going higher with their massive population. United States oil consumption declined by less than 1/2 of 1% with these higher prices.
Basically, the world can pump about 85 mbpd. Until consumption declines, we will have higher prices. The way to curtail the problem that is not going away for a long long time is to have a gas tax to help reduce consumption.
So the theory is to raise the cost of gas (through taxes) to insure that the cost of gas goes down. BRILLIANT!

How about we bring all of our mfg jobs back from China, and all the service jobs from India. That way their economy drops back down along with their consumption. Then with all those extra jobs here, you can pray for a raise in income taxes!

“Taz say Hi”

Since: Jan 08

Holland,MI

#19 May 1, 2008
He's just talking about the short term (between increases).
Neko

United States

#20 May 1, 2008
He needs to study the oil pumps by the Oceana County 911 center!

(The Attorney general needs to get ahold of the production records and see the proof)

All of them were turned off following Richard Cheneys "Secret" energy policy meeting...

All were turned on 24/7 the day the USA crossed the Iraq/Kuawtii border...

All turned off again the day Saddams Statue fell not to be turned on again until gas reached $2.00 a gallon.

What they did...was shut down USA's domestic oil production so they can lie and claim there is and increased "foriegn demand".

(Good reason to charge Cheney for violating the R.I.C.O. law!)
Patrick

United States

#21 May 1, 2008
Thanks for the positive feedback (from most at least, the others... don't know what to say)

Steve- Gentle Taz has it right. Prices to decline between hikes. Perhaps they thought that headline would get more people interested? People are sick of hearing about $4 gas, so perhaps thats why they chose that headline.

As for the pipeline, there indeed is only one pipeline that delivers gasoline to Grand Rapids, the Wolverine Pipeline, but I'm willing to bet Speedway has more control of pricing then the owners of the said pipeline.
NOVACANE

Encino, CA

#24 May 1, 2008
Most people think high gas prices are a conspiracy!! It's riduculous! Why are corn prices tripling over the last few years? Becasue of ethanol! Ok, so we are increasing the amount of alternative fuels on the market yet oil continues higher! What does that tell you? We have an oil shortage. We haven't discovered any big wells since Saudi Arabia back in the 1970's. Yes, oil may decline for a year, maybe two, but the long term oil outlook is very bleak. I know they discovered oil in Brazil but it's not even within years of being delivered on the market. Any yes, the tar sands in Canada. But with steel prices going up 500 percent the cost of extraction has also been magnified.
Buy sugar! Now the soda makers are going to start switching from corn syrup to sugar. Sugar is cheaper than corn for ethanol. And sugar prices are depressed. We haven't seen any new sugar factories being opened except for Brazil.

Since: Feb 08

Portage, MI

#25 May 1, 2008
Its kind of funny the way people think to create an action they think will save them a few bucks!

Quote from story:

"To see if it's going to go up for the day or not," she explains. "If it is we zip out and buy our gas."

If your only purpose is to drive who knows how many miles to save $0.10 or $0.20 cents per gallon? You are burning most if not all of what you think your saving to zip down and make that purchase. When in fact, most cases you would save money just staying home!

I personally will not purchase gas unless I'm on my way to work, or on my way home from work. Then I am creating a savings by not making a wasted trip. To achieve a savings, you need to have multiple demands lined up to make the trip worth while.

Good luck to everyone!

What is the fastest most direct way to cripple our economy and the United States?

Fuel prices. Someone wants America to fail and the high fuel prices is their weapon!

It does not matter how many tanks or guns we have! War is being waged on all US Citizens through fuel prices.
Jim in Mears

United States

#26 May 1, 2008
Couldn't agree with you more Randy. The terrorists can't possibly win a war against us so they run up the price of oil and kill us from within economically. Unfortunately we have willing oil companies and investors here that are lined up with their hands out too. Oil prices have created the economic mess we have right now, and I expect it to get far worse.

I'm like you. I buy gas on the way to or from work. I make my other purchases at the same time. My only destinations for the past year have been work and church. I don't make the trips to Muskegon or Ludington like I use to. I refuse to spend more than I absolutely have to on gas. I also don't buy at Speedway or Wesco. They control the prices and are the first to raise them. I buy at a mom & pop station and if I purchase anything at a gas/station convience store anymore, it's very little and it's only at the mom & pop station.
Randy Whitten wrote:
Its kind of funny the way people think to create an action they think will save them a few bucks!
Quote from story:
"To see if it's going to go up for the day or not," she explains. "If it is we zip out and buy our gas."
If your only purpose is to drive who knows how many miles to save $0.10 or $0.20 cents per gallon? You are burning most if not all of what you think your saving to zip down and make that purchase. When in fact, most cases you would save money just staying home!
I personally will not purchase gas unless I'm on my way to work, or on my way home from work. Then I am creating a savings by not making a wasted trip. To achieve a savings, you need to have multiple demands lined up to make the trip worth while.
Good luck to everyone!
What is the fastest most direct way to cripple our economy and the United States?
Fuel prices. Someone wants America to fail and the high fuel prices is their weapon!
It does not matter how many tanks or guns we have! War is being waged on all US Citizens through fuel prices.

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