Gas shortages

[1965]

On a good day here we pay $1.03 a liter = $3.774 a gallon but from what we hear with all the refineries shut down in Texas the prices are now $1.30 a liter = $4.914 a gallon. I wonder just how much of our gas comes from Texas? Seems like a fart in the wind influences the price of gas any more......if only we could harvest them.

 

[dmccarty]

I have not been out since Friday evening when I got home from a long day.

At the first of the week gas was about $2.13 a gallon and diesel was $2.41. Friday, the highest I saw was about $2.59 for gas and $2.69 for diesel. I filled up the truck a bit early since I only had enough fuel to get to work 2-3 times before I would have to park the truck. Normally I waiting until "empty" before filling but since we had two outages of the Colonial pipeline in the last year and I have seen stations with NO fuel what so ever, I filled up a bit early and had to pay $2.59.

The pipeline is supposed to have started moving diesel yesterday and gas today.

The oldest has been out working and such and has not seen any pumps closed down. Though I did see one set closed down on Friday.

Later,
Dan

 

[smstonypoint]

I filled up on Thursday in Alexander Co., NC at $2.399. I heard from a neighbor that at least one station in the county was out as of Saturday.

I traveled this morning from NC to SC (mainly on I 40, US 321, I 85, and US 123) and did not observe any stations that were obviously out of gas. Of the stations I observed in SC, most were at $2.499.

Steve

 

[check]

On a good day here we pay $1.03 a liter = $3.774 a gallon but from what we hear with all the refineries shut down in Texas the prices are now $1.30 a liter = $4.914 a gallon. I wonder just how much of our gas comes from Texas? Seems like a fart in the wind influences the price of gas any more......if only we could harvest them.

Or better still, truck gas up here from the US. If it weren't for the forces of darkness, we could make a killing!

 

[TomSeller]

On a good day here we pay $1.03 a liter = $3.774 a gallon but from what we hear with all the refineries shut down in Texas the prices are now $1.30 a liter = $4.914 a gallon. I wonder just how much of our gas comes from Texas? Seems like a fart in the wind influences the price of gas any more......if only we could harvest them.

Right, they raise it just because they can. Parts of the US are served by Alaskan oil, same thing. Nothing to do with Texas oil but the pump price jumps up instantly and goes down slowly.

 

[smstonypoint]

Or better still, truck gas up here from the US. If it weren't for the forces of darkness, we could make a killing!

How are gasoline and diesel taxed in Canada?

Steve

 

[Creamer]

Gas was at a solid $2.55 here at almost every station but went out this morning and saw it at $2.45 at a few stations.

 

[EddieWalker]

Sunday morning my wife and I went to Lowes and Walmart. When we walked into the store at Walmart, we remarked how few people there where getting fuel. I had a can with me for the mower and figured to fill it up after we where done shopping. When we came out, the pumps where packed with lines behind them. Everyone was in their Sunday Best, which told me it was a bad decision to wait until church got out to get fuel. We drove down the road and there where no lines and only two other cars getting fuel. Prices are up a bit, but so far, it's easy to find gas and diesel.

 

[1965]

How are gasoline and diesel taxed in Canada?

Steve

The government says it has no influence on the prices however the higher the price the more they make. The taxes are printed right on the pumps and add up to about 17% on the dollar.

 

[/pine]

Let's think about this. Refinery shutdowns have reduced the demand for crude oil, so there is no reason to expect crude prices to rise in this circumstance.

The refinery shutdowns have decreased the supply of gasoline at the retail level. The demand for gasoline is price inelastic -- %change in quantity demanded/%change in own price-- is less than one in absolute value. The right-hand panel below is applicable.

There is nothing sinister going on -- just supply and demand at work.

Steve

Often referred to in the industry as a "crack spread"