Gas and Diesel Could Hit Record Prices

We thought the recent spike in oil prices might not impact prices at the pump quite as much as usual. A recent explosion at a Texas refinery, however, is one reason next week could see the highest prices yet for unleaded and diesel gasoline in the U.S.

Diesel hit a record high of $3.54 per gallon today, and unleaded gasoline is up to a $3.11 national average price, which is an increase of more than 6.2 cents in two days.  If it keeps rising at that rate, it could hit the previous record of $3.22 from May 2007, despite decreased demand.

The unleaded prices aren’t as bothersome as the diesel. Those prices could impact consumer goods because the semi trucks that move virtually every good in the U.S. drink diesel. Higher diesel prices could also slow the sale of new diesel consumer vehicles from various manufacturers like VW and BMW.

Gasoline, diesel prices leap toward records (USA Today)

Comments

[Frank]

gas is going up again... great I should start driving a VW Bus or a moped. This gas thing is getting out of control.

[VW Double cab]

or a pedal bike can't get much more fuel efficient then that.

[VW Double cab]

or a pedal bike can't get much more fuel efficient then that.

[Bowrider]

It's a bit scary. Although I am always skeptical of speculation over gas prices, the prices have gone up of late. It's another sign of stagflation - a depressed economy with rising prices. We could be in a world of poo poo if gas prices continue to rise.

[Red]

This is bad news for all the prospective diesel car buyers. Diesel fuel is more expensive than gasoline in large part because so many professionals use it, the demand for the fuel is steady, and doesn't fall as the price rises. When we get a bunch of new so-called "clean diesel" cars putting more diesel demand on the refineries, the gap between diesel fuel prices and gasoline will only widen - to the point that even with the mildly better diesel mpg there will be no cost savings to driving a diesel car. It's best to stick with a gasoline car - when the price goes up, discretionary driving goes down, putting downward pressure on prices at the pump. For the first time in recent years, gasoline use dropped recently, and as a result pump prices in the Midwest are as low as $2.79 - at the same time that Diesel is hitting its all time high price of $3.54. If a larger percentage of new gasoline cars and trucks are hybrids, gasoline demand will be even more elastic. Buy diesel and you're competing with truckers and other business people for the fuel, and its price will only go up.

[rob]

Not to get all poitical on a car blog, but our nation's economic and foreign policy is to blame. Increased national and consumer debt has lowered the value of the dollar. Instability in Iraq and poor relations with Iran have edged oil prices higher. So because of our expensive war, our money's worth less and oil is worth more.

[Mike Paahana]

everyone should ride 1 moped an save on fuel