May2
With gas prices approaching and exceeding the $4 a gallon mark, presidential hopefuls Sens. John McCain and Hillary Clinton are proposing a measure that would suspend the 18.4-cents-a-gallon federal tax on gasoline. While the proposal could help rally votes for the upcoming election, industry officials are concerned that the move would send mixed messages about the U.S.’ energy policies.
“You have to have alignment,” Jim Press, a Chrysler president and vice chairman, told the Detroit Free Press. The concern is that if gas prices are lowered, it will encourage consumers to go back to less fuel-efficient vehicles, just when many were trading in their trucks and SUVs for more economical vehicles. The move has the potential to throw off the alignment that has been years in the making.
“I’ve never heard of a plan that says, ‘I want you to use less of something, but I’m going to reduce the price,’ ” said AutoNation CEO Mike Jackson.
Instead, some automakers would actually like to see a gas tax increase, therefore encouraging consumers to purchase more fuel-efficient vehicles. Some industry experts — such as General Motors chairman Bob Lutz — feel that a higher gas tax would have been a better policy than the recently passed CAFE standards.
Through the first three months of 2008, small car sales were up 3.4 percent while the overall industry saw sales drop by 8 percent, including sharp decreases in truck and SUV sales.
Amazing… In an economy that is on the verge on another recession, where the oil industry is showing record profits, it baffles me that an article like this could be found. It is an insult on the deepest level that oil industry executives are that greedy and completely lack any moral fiber. Of course there should be measures taken to offer some relief to consumers at the gas pump. Yes, we have all begun to purchase more fuel efficient cars, yes we have all taken steps to reduce the amount of driving we do. But to say that lowering the price of gasoline would cause people to go back to buying large SUVs and other gas guzzling vehicles is completely absurd. It is just another way for the oil industry to hold on to there disgusting profits and continue to pay for executives’ personal jets and Hummer limos. Please… could someone please intervene!
What a bunch of idiots. Jim Press, I’m not going to buy a fing hummer because gas is 19 cents cheaper you retard. Gas is so high because of GREEDY @$$ investors and traders. Not supply and demand. The price is raised on SPECULATION. The oil company CEO’s need to be dragged into the street and beat down. The governemt is futt of BS too, they make BILLIONS off of gas every year. Gas should be $2 a gallon on average.
Or well, now we have a lecture on economy from Gerry’s prodigy point of view. Learn your hearts out kids.
case in point… Just found an article from AP business writer John Poretto. title…”Exxon Mobil 1Q profit up 17 pct, Wall Street expected more” “HOUSTON - Exxon Mobil Corp., the world’s largest publicly traded oil company, said Thursday record crude prices helped its first-quarter profit climb 17 percent to $10.9 billion _ the second biggest U.S. quarterly corporate profit ever.” need I say more…
The prices really aren’t that ridiculous, we’ve just be subsidized for so long and at such a low price that the modest increase (relative to other countries) is a huge shock. I won’t let this b.s. make me pick a different care for my next one and won’t stop me from driving the one I have now. I see this as a knee jerk reaction plus being green has become some sort of status symbol in Hollywood. So follow along sheeple!!! With respect to the older guys on here, how does this compare to the gas crisis in ‘73, think it’ll bounce back?
Regulations in 72 regarding pollution were enacted. In 73, 77, 79 there were a lot of lines at the pumps and cars shrunk dramatically. Especially in 80’s, it was market and economics alignment, governments can only improve problem not the solution. There is dramatic shift in buying decisions occurring already: large vehicles pollute dealers lots, small fuel efficient fly off. Great buys on Hummers.
where is Mad Max when you need him? oh yea, he’s at the Thunderdome!
I’m totally with you PCC. Companies nation wide are going under… record numbers of people are out of homes and out of work… and the gas companies continue to rake in money hand over fist. It is morally wrong… and needs to be stopped.
Sure… lower gas prices might give some people the idea that they can still afford their monster SUV. But the lower prices will really help people like me who have been driving 4-cylinder econocars for years.
The rich people in their Hummers will always be able to afford gas… even if it is $10 a gallon. But these prices are severely hurting the lower and middle class. People who have to rely on their little cars to get them to work every day. I hate to admit it… but there are days when it comes down to I can either buy food or buy gas… and my car gets 25+ MPG.
I’ve already scrapped any plans of a summer vacation run to the beach… and my family has cut eating out down to once a month. I don’t travel to see my parents or grandparents anymore on the weekends because it costs me $20 to get up there and back… and I’m sure that I’m not alone.
The thing that scares me most is that prices won’t go down… even as demand drops. B/C gasoline… like food and water… is a necessity for most of America, so we have to choice but to bend over and take it from the billionaire oil barons… and just hope that we can make enough money next month to pay for gas when it tops $4.50
Exxons profit is nothing compared to Petro Canada. It’s up EIGHTY-TWO percent in Q1!!!
The weak dollar leads to higher prices. The profits for oil companies is coming from increased demand in places other than the U.S. It’s a hard pill to swallow but sometimes the U.S. isn’t the center of the universe.
you guys really need to look deeper into things than just the surface, do you realize that exxon has just paid a record amount in taxes for any company ever. . .and also keep in mind, this is a free market economy, they are allowed to make as much money as they want. . .if you don’t like free markets, maybe you should go to cuba?
damnit, are not is, I must have the LLN editor checking my grammar. ha.
Last I’ve heard Mad Max is taking lessons on race relations and tolerance.
RaineMan, it may be news for you, but if you parents or grandparents own any 401K or IRA retirement plans they may be the oil barons and indirectly benefit from miseries. Oil companies are publicly owned, there are people who more shares then others, but if bother to check, 70%-80% of their stock is owned by even more public funds and fund families. There are very few, if any, large privately owned oil companies.
So we now know what Hillary and McSame think about this, but what about the other candidate??What was his name?? Rev. Wright or something??
Dude, you guys that stand up for the oil companies sound like complete brainwashed idiots. Worldwide demand doesn’t increase that much in a minth to push gas up 40 cents a gallon. And exxons profits are NET profits, meaning AFTER they pay their “record” taxes. Everyone “speculated” gas would go to $4 a gallon by memorial day, well there’s no shock since we “expected” it, so here it is, and all they can say is, “yeah, you thought it would be anyway, oh, I what I meant to say was, supply and demand”
Brainwashed, huh. take a quick peek at any news channel or even online. All that’s on in the nation bemoaning the increase in prices. woe is me. Sounds like you’re the one taking the company line.
Hey dude, if you like taking it in the rear with the oil companies pump, then great for you. Don’t even dare tell me $4 a gallon gas is a fair price.
The issue is not the price it is rate at which it has risen and the timing. It is on top of inflation from weak dollar, mortgage and building industries teetering and a war costing 1/2 a bill a day. I am in the freight industry and cant even begin to explain the scrambling for survival I am seeing in the entire industry.
You don’t have to be a genius to know that the prices are set based on expected fuel consumption. For as long as I can remember, starting late April/early May our driving habits increase. Gas has been slowly creeping up to the point where we are supposed to be getting numb to it. Now comes the peak driving season and here we are… $4.00 a gallon. Are we expected to be that naive. Of course it’s about increased profits for the oil companies. I’m not saying that in a “Free Market Economy” we’re not entitled to as much profit as we can get. What I am saying is that we are reaching a crisis point. How many of you are going to be using your economic stimulus checks for buying TVs or cars? not nearly as many as will be using it for credit cards, groceries, and GAS!
Here, this will get you all choked up for the good ole days.
http://www.time.com/time/magazine/article/0,9171,938911,00.html
The articles’ last line is the best “I see no end to it”
Inflation? Speculation? Gas goes up as soon as the price of oil goes up, even if the gas you’re pumping was made from a $100 barrel, if barrel prices are $120 today that’s what your price will be based on. That’s downright theft, and clever accounting I guess.
4 dollars a gallon is a fair price for gas.
Especially seeing as how the US is ranked #45 out of the top 150 economies for low gasoline prices.
^^^ This guy is so right. Oil consumption has FLAT LINED here in the U.S. Don’t tell me china and india is growing, they aren’t growing fast enough in a month to spike gas what it has become. It’s funny when katrina hit, the refineries and oil drilling stations in the gulf were down a while and the most gas got here was in the $2.50 range. There is no oil shortage now, refineries are back up, so why is it near $4 a gallon? Supposedly a few years ago ALL refineries were at full potential, we didn’t build anymore, yet we were producing just enough gas for the world. Now, world demand is up, operation can’t keep up with demand (supposedly), yet we still have enough capacity to support a world gas thirst that has supposedly grown that much from a few years ago when we were maxxed out? No company is using less, so if we were maxxed out how are they making this extra gas? Hmmmmmm, maybe because the greedy @$$ holes cap off production whenever speculation is bad for them, in othe words demand goes DOWN. Then when it comes back up again, then make juuuuuussssst enough to keep us running our cars.
Well, that retard had to post before I was done, Seriously is brainwashed, PCC and iglesias is right
Gasoline is just one by product of the refining process. Growth in the third world is focusing on their increased presence in industry which runs on other petroleum products.
Not brainwashed, just playing devils advocate. I’m out of the country right now and not paying for gas so I thought I’d enjoy it a little bit. Great comments though.
Anybody remember the original Rollerball movie? If you have a chance watch it not for the game action, but rather for the political and social commentary on corporate society. Then try and convince me that we’re not headed in the same direction.
Peak oil recovery and production occurred in US in mid 70. We can extract much less oil from fields in US then we consume. Thus we are dependent on foreign crude. China, India Europe are in the same boat. The biggest oil producers are Saudi Arabia, Russia & Nigeria. Russia had missed contracted deliveries due to technical problem, something quite common in Russia. Nigeria has internal political and terroristic calamities. Supply of oil shrunk. Demand went up: in China and India cars are selling at the same rate as US now and those cars run on gas. Their cars are smaller and consume somewhat less gas, but those are millions of cars that weren’t present 3-4 years ago.
European Union has larger population then US, but less cars. However, even cars they have consume fraction of fuel we squander.
OPEC has been playing the world for a fool and using oil to manipuilate the rest of the world to its own benefits and the benefit of its member nations for some 30 years. Its us against them we need to ban together (all non opec nations). Find solutions globally to energy, distribution, pollution and food supply issues. If these issues are left to the speculative free market and the profit barons things are going to get gradually worse (less rich more poor). We will all continue to be controlled by and dictated to by a small group with know interst in the general good of the human race.
Last winter half of eastern europe had their heating oil supplies held hostage by Russia because they controlled the pipeline. This is unnacceptable.
The Gas tax Holiday is crap. It takes money away from the infrastructure trust fund, that wad of cash meant for the upkeep and improvement of roads and bridges, form the government as so our roads and bridges collapse further and faster.
Don’t start with me about how that money is being used for **** it shouldn’t. I know it too well.
But The Gas tax holiday would not solve the problems of high gas prices, would likely just give another 18.4 cents for every gallon to the oil companies, put people who build and fix the roads out of work because suddenly there is no money to pay them and/or buy the materials they need to do the job, and encourage consumption that will lead to gas prices being hastened up to or even over $5.00 a gallon.
The high gas prices are good for a number of reasons. They encourage conservation, the decline of of Full-sized Trucks and SUVs, The development of new fuel sources (included cellulosic ethanol away from grain based), more demand for more efficient vehicles, the subtle reduction in green house gases (oops I pooted), and more.
This “Gas Tax Holiday” only sounds good on the stump. It is “feel-good” policy that does nothing but make things worse.
This is pure crap and if Clinton and McCain were not so blindly desperate to grab votes they would see it and shut up about it.
It’s time for new automotive executives for the American automobile industry. The current ones are too old, out-of-touch, overpaid, and just plain ignorant of what it takes to make it today.
All I can say about the gas-tax holiday is can you say b-u-l-l-s-h-i-t?
GUYS.
Like anything, the solution for now is to adapt and kiss the old lifestyle goodbye. You’re already seeing a mass migration to smaller cars and away from huge SUVs. If you don’t want to pay tons of money for gas, then start doing the same.
I was looking at a Cayenne for my next car, but no more. I’m thinking of a small economical car like a GTi now; not because I can’t afford the gas on a Cayenne (remember, in Montreal gas is $1.30 a liter, which is about $5.00 a gallon), but because I think it’s obscene to spend $120 at the pump every week or two.
So… conserve conserve conserve.
What about those of us who cannot conserve anymore? I’ve already got a small car that gets good mileage. But I don’t have a choice when it comes to getting back and forth to work. I have to drive. There are no busses… and 15 miles each way along a major highway is suicide on a bike.
Let’s forget about just fuel prices. Look at the price of food! A 99 cent bag of rice now costs $1.50… and milk is up to $5/gal. People who were barely making it a year ago aren’t making it at all now.
Why should the sensible ones of us in America who did the right thing years ago and ditched the V8 trucks & SUVs still have to pay for all the idiots who bought Escalades, Expeditions, & Hummers?
^^ Even the old asshat deanster gets it… which is a lot more than I can say for some other people on here.
Regardless… a gas tax holiday is the last thing we need right now. One of the big things that have gotten into this mess has been cutting taxes without cutting ridiculous amounts of spending… we’re carrying massive debt thanks to careless deficit spending which has directly affected the value of our dollar - it just doesn’t buy as much as it used to.
While global demand would have eventually drove gas up to a certain extent, if anyone wants to boil down the reason to its common denominator, look no further than the retarded cowboy that half of this country put into the White House for the past seven years.
If I were a Saudi oil baron I’d be funding terrorists to disrupt supply. The Saudis pump out like 20M barrels a day, so if they give Osama $100M to kill people & cause other fear issues and the price pops 5 bucks they make that money back in 24 hours, and every day after that is gravy and “money well spent.”
Can’t prove it, but I guarantee that’s part of it.
RaineMan, you are not paying for idiots who are driving hemi’s and hummers. It is normal part of life called inflation. It is always been here and always will be here. You did everything right, but to live in this world you have to increase your income. You can’t live on yesterday salary tomorrow and despite whatever politicians are saying during election year it is fact of life.
Inflation? Whatever! Yeah, I’m sure the oil companies CEO’s NEED that extra money to survive while the price on EVERYTHING goes up because of gas. What a dumb@$$. Inflation isn’t even a concern to these oil company @$$ holes. Their price gouging CAUSES the current inflation, not the other way around. Get your head out of your @$$, get off your nerdy @$$ of your computer, step outside, and take a look at the REAL WORLD.
Funny xyunya. I don’t remember “inflation” running rampnant 5 years ago… and you’d better believe that we are all paying for the idiots out there with their gas guzzlers. Demand goes up… price goes up… simple economics. We are all paying more for gas b/c some of us chose to be wasteful pigs.
Part of what you said about increasing income is true… but fuel and food costs have doubled in the past 5 years… and the pay scale across america sure hasn’t.
Gas prices aren’t totally the fault of the oil companies. A lot of it has to do with the weakness of the dollar in the current market… and I wonder who is responcible for that?
Hows about a higher gas tax, along with the increased CAFE standards? That way it’s a win win. No, really this is ****. These schmucks just want your vote and will say anything they can to get it. It’s a stupid idea, kinda like this “economic stimulus package”, it’s a bandaide on gaping gash. F****** sad.
There’s this thing called peak oil….production doesn’t meet demand, so oil prices increase. The refineries have nothing to do with it, they’re running well under 90% capacity last I checked, and gas inventories are okay, it’s just that the raw price of oil is high, and increased significantly the last 3 months, which is why gas prices are going up now, as the more expensive oil hits the market as refined gas (skeptics think gas goes up as soon as oil goes up, but it isn’t true if you actually analyze the numbers).
Don’t expect prices to recover to 2004 levels, ever. As oil production really hits the peak and starts to decline, probably in the next 2-8 years (big uncertainty because OPEC doesn’t release information about their oil reserves), prices could be triple what we complain about today. Put that in your tailpipe and smoke it.
A gas tax holiday would work if this was a temporary event (another Hurricane Katrina, or some pipeline is disabled for a couple months). But this isn’t temporary, so this kind of band-aid fix is nonsense and doesn’t solve the problem. Anybody who goes thru more than 30 gallons a month is a major part of the problem. Reducing consumption is the only answer until electric vehicles and cellulosic ethanol are in place. And bike lanes and public transportation, if that ever happens.
So in other words, it’s not so much about the choice of people to pick what vehicle they would like to buy, but about controlling what they buy, how they buy it and profits?
Who would have known, but hey, I’m getting pretty tired of this bull****. Not so much prices, but the people in office regulating things in my life, it was never meant to be that way. Taxes are out of hand, and don’t consider bringing up Europe, I could care less if their taxes are three times higher, it just goes to show they have yet to grow any intolerance.
nerfer- You need to understand, it’s not just gas that’s taxed. It’s also the building of the refineries, the operation of the refineries and the production output, and then it’s taxed every cent of the way. I had been reading that taxes is a major reason for the price increase, more like twice the current advertised tax.
And you also need to understand that we really have no clue where peak oil lays. Estimations are there, but only based on known sources, production and output. We refuse to drill any more in Alaska, not because it’s an environmental threat, but where there’s profit to be made, they’ll do it.
Raineman- Then explain Europe, where the average car gets much better fuel economy than the average here. Taxes, yes, but take out a big chunk of that and your still left with four and five dollars a gallon, despite them barely using as much for their vehicles.
Much of it is due to inflation.
Let me ask all of you here, how does the Federal Reserve lower interest rates?
Live closer to where you work, that’s the answer. Oil companies make less money off of you if you buy less gas. Will it happen? Maybe after the housing slump and record gas price. Any kind of government subsidy is just temporary. Market economy will win ultimately. So the only thing consumers can do is to think of ways to cut back: smaller cars, living closer to work, consolidate shopping trips are just a few things. In order to NOT be part of the problem, you have to be willing to change part of your liefstyle instead of just whining about oil company profits or failed government policies.
There is no problem with Exxon making the profits they do if they weren’t so subsidized. Subsidization is not part of a free market system, that reeks of a command system. Speculation is what is driving up the price, Exxon’s execs and other companies execs agree that the price of a barrel should be about $50-60, not almost $110 like it is now.
Also, the Fed making the dollar so worthless by decreasing the interest rate so freaking much and increasing the money supply so drastically, the dollar has lost 30% of its value since 2000 alone. The fed is a useless bureauacracy. The price spike is not based on supply and demand.
I hate when people from Europe come on sites and bitch that Americans should shut up about gas prices because they are so much “cheaper” than in Europe. Last time I checked only Saudi Arabia produces more oil a year than America, so our prices should be cheaper, that is the supply and demand aspect, but prices should only be at most $2 a barrel based on supply and demand.
I love this notion that oil companies are only now raking in billions of dollars in profits… it’s only in the limelight now because the price at the pump is so high.
Whether or not anyone wants to admit it (or more likely whether or not they can understand it), inflation is a big factor towards the rise in prices across the board, however - the other factor which is exasperating the pain felt at the consumer level because of inflation is the record devaluing of the dollar… it’s not worth as much - period. If it’s not worth as much, then it doesn’t buy as much, which means it takes more dollars to buy the same amount of goods/services/commodities.
The end result of inflation in this country has generally been kept in check by a strong economy and a strong dollar. However, thanks to the “special-ed” version of economics that’s been practiced by our government for most of this decade, we have neither of those things…
Bad policy generally equates to a failed policy… which is why the last thing we would possibly need right now is this gas-tax “holiday,” because again, the last thing we need is the elimination of another tax without any cuts in spending, especially since this particular proposed tax cut won’t even be felt by consumers at the pump… so it’s a “lose-lose” proposal being touted by losers.
Gregsy- Spot on in the first two paragraphs!
AMGoff- And now, we see the consequences of those “special ed” economics.
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Talking about Europeans mentioning their gas prices, is it just me or does it seem America’s tended in the past 20 years to be more like it’s European counterparts and punish everything with a fee? That may sound silly, but when you start hearing that your state may pass taxes on things you sell at your own yardsale, then what’s not crazy?
AMjackoff, I’ll take asshat as a compliment from a flaming gay pedophile like yourself.
^^ that’s more like it… except IIRC, it used to be “AMGackoff” lol… I remember when people used to get all pissy and sensitive from your world-class insults and I never understood it… you’re nothing but a crude, vile, foul-mouthed asshat - but unlike others you don’t constantly try to litter this and other sites with biased, ignorant BS and then lie to try and cover your own ass… you’re just a ****er plain and simple… and for that - much respect my friend, much respect.
LOL. I’m actually a really nice guy when I want to be. You should see me at work with the older patients, I’m so sweet to them it’s disgusting. They tell me outright they want to adopt me, and I laugh when I think “If only they got on LLN, they would crap their ****ing pants when they saw how heinous we can be…” LOL!
It’s pretty obvious now that most who work at LLN are Obama supporters. Love how it explicitly mentions how Clinton and McCain are for a gas tax, and then an article is written to try to say lifting the gas tax is bad