Gas Prices Doomed To Remain Low?

fmdog44

fmdog44

Well-known Member
Location
Houston, Texas
I just read in a finance newsletter because of the diminishing demand for gasoline the price will remain low mainly due to the ever increasing numbers of electric cars/trucks. Hopefully the days of 4-5+ dollars per gallon are gone for good.
 

Crude oil prices have remained fairly stable at around $60 a barrel for the past couple of years. Oil spiked in early Summer of 2008 at over $135 per barrel which led to sky high pump prices for several weeks/months. Now, with Fracking, and Shale Oil production, we are no longer at the mercy of Saudi Arabia, so prices will hopefully stay reasonable. Over time, increased use of electric cars will likely reduce the need for gasoline, but that will be several years from now. Currently, the areas still paying well over $3/gal, are doing so as a result of state taxes...California, etc. Locally, our prices have stayed between $2.10 and $2.40 for the past couple of years.
 
Gas will be cheap and electricity will soar the day I buy my first electric car.

"There are many in this old world of ours who hold that things break about even for all of us. I have observed, for example, that we all get the same amount of ice. The rich get it in the summertime and the poor get it in the winter." - Bat Masterson
 
oil is an example of the fact that what we all like to call inflation and blame the dollar and the fed is really simple supply and demand issues not inflation of the money supply .

when we stop over using something the price falls , if we add new supply the price falls .

this stuff has nothing to do with the value of the dollar at all ....most of what people complain about as monetary inflation really is not and that is why clamoring for higher wages can't fix it . that only increases the shortage of things raising prices more .
 
Many magazines, such as National Geographic, claim that we will run out of oil & gas in the near future. Actually, cheap deposits of oil & gas are nearly gone. Now, comes drilling in the Gulf of Mexico & game refugees up in Alaska. The low price at the pump will hasten the depletion more & more & it also encourages the purchases of huge trucks, vans & SUVs. The future sure looks interesting.
 
CarolfromTX said:
Don't forget that part of the price of gasoline at the pump is taxes. And we all know those rarely go down.
Click to expand...

From Wikipedia, the free encyclopedia


Jump to navigationJump to search
Fuel taxes in the united states
The United States federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel.[1][2] The federal tax was last raised in 1993 and is not indexed to inflation, which increased by a total of 73 percent from 1993 until 2018. On average, as of April 2019, state and local taxes and fees add 34.24 cents to gasoline and 35.89 cents to diesel, for a total US volume-weighted average fuel tax of 52.64 cents per gallon for gas and 60.29 cents per gallon for diesel.[3]

---------------------------------------------------------------------------------------------------

total US volume-weighted average fuel tax of 52.64 cents per gallon for gas and 60.29 cents per gallon for diesel

I remember buying gas for under 30cents per gallon the federal gas tax was 1.5 cent per gallon.

1.5 cents - July 1940 through October 1951
Congress raised the gas tax by half a cent in 1940, just before the United States entered World War II, to help boost national defense. It also made the gas tax permanent in 1941.
 
mathjak107 said:
oil is an example of the fact that what we all like to call inflation and blame the dollar and the fed is really simple supply and demand issues not inflation of the money supply .

when we stop over using something the price falls , if we add new supply the price falls .

this stuff has nothing to do with the value of the dollar at all ....most of what people complain about as monetary inflation really is not and that is why clamoring for higher wages can't fix it . that only increases the shortage of things raising prices more .
Click to expand...
Oil price is supply & demand now that we are self sufficient not staring down the barrel of a Middle East gun. V8 motors are becoming extinct and 6 and 4 cylinders are the typical motors provided and electric is now and the very near future. Electric pick ups next year and possibly this year.
 

Back
Top