Archive for June, 2008
June 12th, 2008
A year ago, gas prices were retreating from then-records in May. By June 12, they had dropped more than 20 cents from the high, reaching $3.23 a gallon in Rockford. Eventually, they would even get below $3 for a spell. Those were the days. Now we’re just happy when prices don’t go up.
On to the prices:
Gasoline: Rockford stayed at a record $4.14 a gallon remaining second in the state and. We’re above the state average ($4.13) for the second day in a row. Most metro areas dropped slightly today. The state average dropped half a cent today to hold at $4.13. The national average rose almost a cent today to a record $4.06. Illinois still has the ninth-highest gas prices in the nation.
Diesel: Rockford dropped more than a cent today to $4.80, almost seven cents behind the record set May 30. We now have the third-highest diesel prices in the state, dipping behind Quincy (just over $4.80). The state average rose a fraction of a cent to $4.81 a gallon. That’s less than a cent behind the record set May 31. The national average also gained less sthan a cent today to sit at a record $4.79 a gallon. Illinois is tied with the 19th-highest prices in the country, (including the District of Columbia).
June 11th, 2008
The U.S. Energy Information Administration reported today that oil inventories have dropped more than three times what analysts expected, sending prices upward. Oil hit as high as $138.3, and is now at $136.38 a barrel. Analysts say gas prices haven’t caught up to rising oil prices, and will keep rising even if oil plateaus. The EIA projects fuel could peak at $4.15 a gallon nationally in August, but one analyst sees $4.25 a gallon gas by July 4 if oil remains around $140.
Looking long-term, the EIA suggests that fuel-efficient cars and increased use of ethanol could drop oil prices to $86 a barrel in 2010 and back up to $107 a barrel in 2015. Wonder what the cost of corn would be, then?
On to the prices:
 Gasoline: Rockford increased more than two cents today to a record $4.14 a gallon. We remain second in the state. Most metro areas increased today and now only Champaign ($3.99) remains under $4. The state average rose a fraction of a cent today to remain at a record $4.13. The national average rose a cent today to a record $4.05. Illinois still has the ninth-highest gas prices in the nation.
Diesel: Rockford increased a fraction of a cent today to $4.81, five cents behind the record set May 30. We still have the second-highest diesel prices in the state. The state average rose a cent to $4.80 a gallon. That’s a cent behind the record set May 31. The national average gained les sthan a cent today to sit at $4.79 a gallon, tying the record set May 30. Illinois still has the 20th-highest prices in the country, (including the District of Columbia).
June 10th, 2008
The U.S. Energy Information Administration projects gas prices to average at least $4 a gallon nationally every month for the rest of the year. The projection doesn’t have national prices dipping below $3.90 until *next* September, which means Rockford’s date with $4 gas would probably go through then.
Let’s hope the EIA is wrong. However, the last few times they were wrong, they had underestimated gas prices…
Rockford increased two cents today to a record $4.12 a gallon. We remain second in the state. Most metro areas increased today. The state average rose a cent today to a record $4.13. The national average rose two cents today to a record $4.04. Illinois has the ninth-highest gas prices in the nation.
Diesel: Rockford increased almost two cents today, six cents behind the record set May 30. We still have the second-highest diesel prices in the state. The state average rose less than a cent to sit at $4.79 a gallon. That’s two cents behind the record set May 31. The national average gained more than a cent today to reach $4.79 a gallon, less than a cent shy of the record set May 30. Illinois has the 20th-highest prices in the country, (including the District of Columbia, which rose past us).
June 9th, 2008
Today’s fun fact.
There are 42 gallons in a barrel of oil. So, using some crude math (get it? crude?), for every 42 cents the price oil goes up, the main component of gas prices goes up a cent a gallon. Even with as much as a 10-cent spike in gas in parts of Rockford over the weekend, that doesn’t make up for the $10 a barrel hike in oil prices Friday.
Which means that, even with oil retreating some today, gas prices haven’t necessarily “caught up.” Retailers are still seeing very tight margins and can’t pass along the full increase in their costs. It would take a while of sustained decreases in oil prices to get any kind of relief at the pump.
On to today’s prices (data courtesy of AAA’s fuelgaugereport.com):Gasoline: Rockford increased a cent today and four cents over the weekend to a record $4.09 a gallon. We remain second in the state. Most metro areas increased over the weekend. The state average rose a cent today and two cents over the weekend to $4.12, a penny short of the record set a week ago. The national average rose almost two cents today and three cents over the weekend, topping $4 for the first time and settling at a record $4.02. Illinois has the ninth-highest gas prices in the nation.
Diesel: Rockford dropped a fraction of a cent today, but still gained more than half a cent since Friday, and now stands at $4.79 a gallon. That’s seven cents behind the record set May 30. We’re back up to the second-highest diesel prices in the state, ahead of Quad Cities ($4.78). The state average increased almost a cent today, but remains about where it was Friday at $4.79 a gallon. That’s two cents behind the record set May 31. The national average gained a cent today to reach $4.77 a gallon, two cents behind the record set May 30. Illinois has the 19th-highest prices in the country.
June 9th, 2008
Even though Illinois was one of the first states to see $4 a gallon gasoline, and now ranks eighth in the nation, we don’t have it as bad as a lot of places, according to a survey by the Oil Price Information Network and a related story in the New York Times.
The average American is spending 4 percent of his or her take home pay on gasoline. According to this map, we here in northern Illinois are paying between 3 and 5 percent. Some parts of the Chicago suburbs are paying only 2 to 3 percent. Meanwhile, rural parts of the South and upper Midwest are paying a double-digit percentage of their paychecks. Obviously, the rise in gas prices has hurt everyone to some extent - and the poorer folks anywhere are getting particularly squeezed - but it puts things in perspective.
I’m trying to get regional data from OPIS for our own story this week. What are readers experiencing?
June 9th, 2008
Courtesy of the venerable and hilarious Consumerist.com:
“UPS’ horse, Big Brown, failed this afternoon to deliver a much-anticipated Triple Crown victory. Maybe he’ll try again tomorrow from 2pm-5pm.”
June 6th, 2008
When things get worse, they get worse in a hurry. Oil prices have gone up $13 in two days, reaching a new record of $136 a barrel. Expect gas prices to follow.
What happened? Well, first, the head of the European Central Bank yesterday made some comments about strengthening the euro - and thus further weakening the dollar - that sent the market into a tizzy. As Alaron analyst Phil Flynn colorfully put it, “Mr. Trichet basically said sorry Ben the dollar is your problem and don’t look to Europe to help you out. In fact look for Europe to squeeze you because we are raising rates to squeeze you and drive you into recession because we are in better shape to handle it.”
Then, pouring fuel on the fire, a Morgan Stanley analyst today predicted $150 oil by July 4 because of Asian demand. The oil market took that as a challenge, and prices continued to soar.
A voice of dissent, Shawn Tully of Fortune magazine today said the oil boom will eventually bust (he uses an obvious pun, but The Passenger Seat would never go that route. No, never.).
I’ll say this. Every day, something like this space-age vehicle is seeming more and more attractive.
On to today’s prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford dropped a fraction of a cent to remain at $4.05 a gallon. We’re now second in the state, as East St. Louis dropped just behind us. Most metro areas dipped slightly again today. The state average dropped almost a cent to $4.10. The national average dropped a fraction of a cent at $3.99. Illinois has the eighth-highest gas prices in the nation.
Diesel: Rockford dropped more than four cents to $4.78 a gallon this morning. We now have the third highest diesel prices in the state, dropping behind Quad Cities ($4.80). The state average dropped almost a cent at $4.79 a gallon. The national average dropped a cent to $4.76 a gallon. Illinois is tied with the 19th-highest prices in the country.
Expect all this to change over the weekend.
June 5th, 2008
Well, that didn’t last long. After oil prices fell for several days in a row, due to dropping demand and indications of a strengthening dollar, they rebounded to top $128 a barrel today, before settling just under that mark. Basically, the dollar is looking weaker against the euro, which sends everyone into a tizzy.
This probably means the slight decrease in gas prices throughout Illinois may stop. Will they go up? Who knows. A couple interesting facts to note. First of all, according to the above AP article, oil prices have risen 89 percent in the past year, while gas prices have “only” gone up 27 percent. Gas station margins are really tight right now, and you might not see prices drop as quickly as oil prices do because of that. Before crying foul, note that they also didn’t raise prices as quickly as they could have.
Also note that Illinois gas prices are closer to the national average than they’ve been in almost two months. We’re still a good 12 cents above the nation, but now down to eighth in the country. Perhaps Illinois retaillers hit a ceiling of what they think customers will pay? But, given today’s unexpected news on the oil front, that could all change tomorrow.
Here’s the info (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford stood at $4.05 a gallon, down 3.5 from the record set Saturday (Sorry, I misspoke the other day when I said the record was Sunday). We’re still third in the state, behind Chicago ($4.20) and East St. Louis ($4.06). Most metro areas dipped slightly today. The state average dropped almost a cent to $4.11, down two cents from Monday’s record. The national average, however, continued at a record clip, rising almost a cent to $3.99. Illinois has the eighth-highest gas prices in the nation.
Diesel: Rockford dropped more than a cent to $4.83 a gallon this morning, down almost four cents from the record set Friday (again, I misspoke, I had forgotten how many days were in May). We still have the second highest diesel prices in the state, behind Chicago ($4.88). The state average dropped a cent to $4.79 a gallon, down almost two cents from Saturday’s record. The national average dropped almost a cent to $4.77 a gallon, two cents shy of Friday’s record. Illinois has the 18th-highest prices in the country.
June 2nd, 2008
Sorry it’s been a while since I last posted one of these. I’ve had nothing insightful to say about high fuel prices
Here’s the info (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford dropped half a cent this morning to $4.07 a gallon, 1.5 cents below the record set Sunday. Hopefully Sunday was the high-water mark, but I wouldn’t bet on it. Our prices have gone up about 40 cents in the past month, and we’re third in the state. The state averaged inched up a fraction of a cent to a record 4.13 a gallon, a 38 cent hike in the past month. The national average remained at a record $3.975, up 36 cents from a month ago. Illinois has the sixth-highest gas prices in the nation.
Diesel: Rockford dropped a fraction of a cent to remain at $4.83 a gallon this morning, down more than three cents from the record set Saturday. Still, prices are up 53 cents from a month ago. We still have the second highest diesel prices in the state. The state average dropped half a cent and sits at $4.81 a gallon, 48 cents up from a month ago. The national average dropped almost a cent to $4.79 a gallon, but is till up 54 cents from a month ago. Oddly enough, Illinois has the 19th-highest prices in the country.
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