so, basically what we see is that the national average price does indeed follow the price of crude, but it's lagged and smoothed.

I looked at longer dated charts, but the AAA data only goes back about 2 yrs, didn't hunt down a substitue series yet (if someone really cares, no biggie). seems that last DEC/JAN/FEB this really worked in OUR favor, but in late '05, worked against us.

Damn the nameless, faceless conspirators!

 

I have heard this argument way too many times & I do not understand how it correlates in a meaningful way. I mean "what if " my Mini ran only on my bottled perfume? It would then cost me $91,485 to fill up my tank but does that really mean anything .

I understand bottled water costs more per gallon but I do not require bottled water to get thru my everyday life. Bottled water is a relatively new phenomenon & I have tap water at my house & for under $10 a month I can pump more gallons into a glass than I can physically drink. I do, however, require gasoline & I do not have an alternative choice. Here in Alabama we do not have horse & buggy lanes on the interstate & thus far my boss has discouraged me living at the office full-time

That said...gas prices haven't budged here but I have heard the claim that gas stations need to deplete their higher priced reserves before we will see the price decrease (but I'm not holding my breath )

 

14:21 U.S. CRUDE FUTURES UNDER $52/BBL, FIRST TIME SINCE JUNE 1, 2005 - Reuters
At this price, gas will be under $2 I would think. I can't wait.Then I can really drive my MINI like it needs to be driven (gas milage be damned).

 

only that it's ironic that people complain about the cost of gas when comparatively, bottled water is normally more expensive when measured the same way. think about the cost of acquisition, refining, and then distribution of the gas you put in your car and then compare those costs for that bottle of Evian.

 

The difference is that we don't need evian to get to work, but since there is no real mass transit in probably 90% of the country, we must buy gas.

 

but, that's not really true either. not many carpool or ride/walk to work when they can. If gas was priced like Evian, more of us would

 

I filled up my MCS last night and paid $2.41 per gallon of Citgo 93 premium. Gas has gone down about $ 0.12 per gallon in the last week or so.

 

THANK YOU Thomas ... Hope you dont mind I use your chart.

This is the FIRST explanation I have seen that makes sense.

Nice find!

 

CITGO is the Venezuelian National Oil Company, and controlled by it's resident dictator. Sounds like something he'd do, to get more money out of the country he keeps putting down.

Boycott CITGO.

 

An interesting site: http://www.measuringworth.com/calculators/compare/#

Using the site calculator, gas (which cost .32 when I started driving in 1966) would cost the following in 2005, depending on the formula used. (The site explains the different indexes)


$1.93 using the Consumer Price Index
$1.56 using the GDP deflator
$2.10 using the unskilled wage
$3.34 using the nominal GDP per capita
$5.06 using the relative share of GDP

 

According to that calculator... In 1960 a loaf of bread ran approx 21 cents. So in 2005 that bread should have cost $4.97 & yet a loaf of bread actually costs around $1-$2 today. Or my parents condo bought for $45K in the 70's should have sold for around $300K "calculator money" in 2000 yet my mom only got $100K for it in . That calculator is pretty bogus.

So when I keep getting told how gas should actually be $5+ a gallon today & I should be greatful that it is only $2.50 you will have to pardon me if I say...
*cough* BS *cough*

 

Good point - it's easy to misuse the CPI and similar calculators, for just the reasons you mentioned. The Core CPI specifically *excludes* food and energy items, because they're volatile and non-systemic. None of the calculators listed are meant for real estate calculations either, for the same reason - too volatile and prone to the whims of local booms and busts in the housing market.

 

If you don't understand how the tool is used, it's garbage in, garbage out!

Matt

 

Thanks for showing your true colors guys - all of NAM can now plainly see you are corporate shills for Big Oil. You are officially part of the conspiracy. I expected this of Chows, but Thomas, my soul weeps for thee.........

To rebut your capitalist propaganda, tomorrow I am going to post copies of some undercover work done by my political mentor, Lyndon LaRouche, showing how Big Oil asassinated Kennedy, killed the All-Bran powered car and started the Civil War, the War of 1812, the Boer War and the Crimean War.........and additional proof of how the Queen of England runs the international drug trade.

 

complaining about the cost of crack! One way to make that matter a lot less......

Matt

 

 

The other brands aren't any better. Face it, our fuel supplies come from the most unsavory characters over the face of the earth. So this is pretty much a decision of which poison to pick... Venezuelan or Middle Eastern as rogue as they come.

Citgo has the cheapest gas (Or at least the most competitive priced) around town and boycotting it will not drive Hugo Chavez out of power or will diminish his wealth. Instead, you'll be hurting hundreds of Americans that work for Citgo that have nothing to do, neither do agree with the clown down in Caracas.

Hugo Chavez is nothing but a populist clown. He wants to be the next Fidel Castro, but he is not even good for that. At least Castro has brains, while Chavez is just a puppet.

 

I pretty much agree there. I don't like CITGO either but they are pretty much the only brand that will supply the lil Mom-n-Pop stations so I hate to see the small independant station owner suffer. I have a tiny operation 1/4 mile from my house (owner lives in the house behind the station) that I buy 90% of my gas from him & he is supplied by CITGO but I buy there to support him not CITGO

 

What he said. CPI used to be about durable goods ... appliances ... not food, energy or land. Land booms and recyles and prices. Some parts of the country and simply more expensive than others.

Think ... Dryers