Archive for January, 2009
January 14th, 2009
A very slight drop in gas prices, but nothing to write home about. We also fell a tad relative to the rest of the country, but again, not a very notable level.
Here are the prices (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford dropped a cent to $1.92 a gallon. We have the third-highest gas prices in the state, behind Chicago and Quad Cities. We’re tied as the 56th-highest of the nation’s 280 metro areas. The Illinois average dropped a fraction of a cent to remain at $1.93. The national average remained at $1.79. Illinois has the seventh-highest gas prices in the nation, including the District of Columbia. Alaska, California and Hawaii average more than $2 a gallon.
Diesel: Rockford dropped a fraction of a cent to remain at $2.40 a gallon. We have the sixth-highest diesel prices in the state. The state average dropped a fraction of a cent to remain at $2.55. The national average rose a fraction of a cent to remain at $2.43. Illinois has the 14th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
January 13th, 2009
Prices in Rockford proper have dropped a little to the $1.96 range, but we still feel the pressure of higher wholesale prices out of the Chicago market. Check out this gas price temperature map and see - the West Coast leads the nation, but the Midwest is also quite above average. It ain’t just Rockford, folks.
A lot of it is taxes - at last count by the American Petroleum Institute, Illinois had the third highest gas taxes in the country and was on average 16 cents higher than the national average (hey, that accounts for more than the difference with the national average!) Also, we’re farther away from most refineries on the Gulf Coast (it’s no coincidence the West Coast has the highest fuel prices, then the Midwest). And you’ll see northern Illinois, which is generally the most expensive and most taxes part of the state as well as the farthest from the Gulf, has the highest prices consistently.
Also, I have a correction. Somewhere along the line I started reporting that there are 250 metro areas in the U.S. tracked by AAA’s fuelgaugereport.com. It’s actually almost 280, and somewhere on this blog I transposed that number … I apologize. We’re still in the upper reaches of the nation’s prices, though we might drop a little when things are updated tomorrow.
Here are the prices (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford dropped a fraction of a cent to $1.93 a gallon. We have the third-highest gas prices in the state, behind Chicago and Quad Cities. We’re the 52nd-highest of the nation’s 280 metro areas. The Illinois average dropped a fraction of a cent to $1.93. The national average remained at $1.79. Illinois is tied with the sixth-highest gas prices in the nation, including the District of Columbia. Alaska and Hawaii are joined by California in averaging more than $2 a gallon.
Diesel: Rockford rose six cents to $2.40 a gallon. We have the sixth-highest diesel prices in the state. The state average increased a cent to $2.55. The national average rose a fraction of a cent to $2.43. Illinois has the 14th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
January 12th, 2009
Communities around the country are sending President-elect Barack Obama their “wish lists” for his proposed multibillion-dollar economic stimulus package. The Rockford region joined in, listing $1 billion in transportation, public building and other infrastructure projects that could start construction in four months.
You’ll be shocked to know that I not only don’t get a say in the stimulus package, but my own wish list was returned from Washington, D.C., unopened (something about “insufficient postage”). But that doesn’t stop me from listing it here:
- Amtrak between Chicago and Rockford. I don’t care which route, as long as it goes fast, minimizes delays and gets done soon. There are good reasons to bring it back on the old Black Hawk line through Genoa or to run it through Belvidere. I’m not smart enough to say which is better, but I do know that high-speed rail is key to reducing our dependence on oil, minimizing damage to the environment and improving our quality of life in the Rock River Valley. Successful Amtrak routes downstate show that people are willing to get out of their cars if the price, reliability and time are right.
- A feasible and funded plan for commuter rail. It’s not greedy to want both. Amtrak will serve day-trippers and those heading to Chicago and points beyond, while commuter rail will aim toward those working in the Chicago suburbs. To see one of the many benefits of commuter rail, look at the “Metra effect” in suburban downtowns with train stations — cafes, shops and service providers have flourished in recent years. Sure, the economy is in the toilet right now, but it’ll recover eventually and Chicagoland will resume its westward expansion. This is a key to becoming the next great bedroom community.
- A better funding mechanism for transportation projects. Federal and state gas taxes in their current form don’t work. Because they are per-gallon flat taxes, they go down when prices go up because people buy fewer gallons. Meanwhile, it’s very unpopular to raise those taxes, because people are so sensitive to gas prices. But the national highway trust fund is running out of money, and we need a way to find more funding for infrastructure. Also, we need to not just build highways, but use such money for transit and other alternatives to driving.
- Allegiant Air to open a new destination less than 1,000 miles from Rockford. That’s the only way we’re going to see significant growth from Chicago Rockford International Airport’s top carrier, since they’ve made a habit of cutting route lengths to save fuel costs and increase efficiency. Florida, Mesa and Vegas are great, but Rockford is one of the first to lose service when fuel spikes. It was good news when Allegiant honchos suggested New York as a future destination, which would be a perfect fit here (at least for me).
- A calmer year for truckers. They’re the backbone of the logistics sector in the Rock River Valley, and they got hit particularly hard in 2008. First fuel prices soared, and many independent truckers went out of business. Now it’s just plain hard to find shipments. Truckers have an unenviable, but vital job, and I wish them the best this year.
- A Chick-fil-A at the Belvidere tollway oasis. This isn’t technically a transportation wish, but I really want a Chick-fil-A. Come on, Mr. Obama, make at least one of my dreams happen.
Contact staff writer Thomas V. Bona at 815-987-1343 or tbona@rrstar.com.
January 9th, 2009
Seems no real change in Rockford itself, so any increase is probably outlying stations catching up. I sense $2 is a real barrier gas stations don’t want to break if they don’t have to (it’s a big psychological blow to consumers), so they’ll stop going up at $1.99 even if their costs go up and perhaps won’t go back down as fast when costs drop.
While oil prices are slightly down again, it’s apparent that something it causing gas prices to elevate in the Midwest. A few more metro areas around the Midwest have passed Rockford in prices, and in general the region is behind only the west coast, Alaska and Hawaii.
Here are the prices (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford rose less than a cent to remain at $1.93 a gallon. We have the fourth-highest gas prices in the state, behind Chicago, Bloomington, and Quad Cities. We’re the 66rd-highest of the nation’s 250 metro areas. The Illinois average rose more than a cent to $1.94. The national average rose two cents to $1.78. Illinois has the seventh-highest gas prices in the nation, including the District of Columbia. Only Alaska and Hawaii remain above $2 a gallon.
Diesel: Rockford rose almost a cent to $2.45 a gallon. We have the fourth-highest diesel prices in the state. The state average dropped almost a cent to $2.54. The national average rose almost a cent to $2.44. Illinois has the 15th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
January 8th, 2009
The Midwest is still getting hit harder than the rest of the nation. Another industry source told me yesterday that wholesale prices out of Chicago were 12 cents higher than on the NYMEX, and gas out of Chicago dropped half as much as NYMEX gas yesterday … even though crude fell.
“This tells us that there is a real disconnect between crude and Chicago gas, typically related to supply and refinery margins. I haven’t really looked into this but I think it is all related to reduced refinery runs and demand in the Midwest,” he said.
It’s telling that even though prices in the Rockford metro area rose significantly since yesterday, we went down 10 spaces on the list of U.S. metro areas. Almost half the metro areas above us are in Michigan, Ohio, Indiana and Illinois.
Prices in Rockford seem to have stalled at $1.99 a gallon, and in some cases receded back a cent or two. With crude down again, I expect prices to stabilize or back off a bit … and we’ll work our way down to the bottom of the top third of the country.
Here are the prices (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford rose four cents to $1.93 a gallon and has gone up 24 cents in the past week. We have the third-highest gas prices in the state, with crazy Springfield passing us at $1.94. Bloomington and the Quad Cities are right behind us. We’re tied as the 63rd-highest of the nation’s 250 metro areas. The Illinois average rose five cents to $1.93, a 24 cent increase in the past week. The national average rose more than three cents to $1.76, only a 14 cent increase in the past week. Illinois has the sixth-highest gas prices in the nation, including the District of Columbia. Only Alaska and Hawaii remain above $2 a gallon.
Diesel: Rockford dropped two cents to $2.44 a gallon. We have the fifth-highest diesel prices in the state. The state average rose half a cent to $2.55. The national average rose a cent to $2.43. Illinois has the 14th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
January 7th, 2009
…because we went down faster. That’s the reason one of my industry sources cited, and looking at the data it makes sense. Check out this chart from Illinoisgasprices.com:
You’ll see how, for much of November and December, Illinois’ average was around or below the national average, even though generally it’s a bit above the average (because of taxes, distribution and business costs. So Illinois going up more is offsetting that (you can complain about it, but technically you were paying less than you might have been a couple weeks ago). And my source expects prices elsewhere to rise more later in the week.
Oh, and before you say “See! Oil prices fell more than gas prices” check this out, over a six year period:
In a sense, we’re still recovering from that spike a year ago. Man, that really sucked Here are the prices from this morning, and it seems like little’s changed since (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford rose four cents to $1.89 a gallon. We have the second-highest gas prices in the state, but every metro area in the state rose significantly and they’re close to us. We’re the 53rd-highest of the nation’s 250 metro areas. The Illinois average rose almost five cents to $1.88. The national average rose four cents to $1.63 (EDIT: woops, $1.73). Illinois has the seventh-highest gas prices in the nation, including the District of Columbia. Only Alaska and Hawaii remain above $2 a gallon.
Diesel: Rockford rose more than a cent to $2.46 a gallon. We have the fourth-highest diesel prices in the state. The state average rose more than a cent to $2.54. The national average rose a cent to $2.42. Illinois has the 14th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
January 6th, 2009
Gas prices are up to $1.99 a gallon around Rockford, and they pretty much went up throughout the region today. Must be something going on with supply prices out of Chicago (which has prices north of $2 now). Obviously, the rise of oil is the main reasons prices are up across the country, but I’ll look into what’s causing the somewhat faster spike in the Midwest tomorrow.Here are the (already outdated) prices from this morning (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford rose two cents to $1.85 a gallon. We have the second-highest gas prices in the state and we’re the 50th-highest of the nation’s 250 metro areas. The Illinois average rose almost two cents to $1.83. The national average rose almost two cents to $1.69. Illinois has the seventh-highest gas prices in the nation, including the District of Columbia. Only Alaska and Hawaii remain above $2 a gallon.
Diesel: Rockford rose three cents to $2.45 a gallon. We have the fourth-highest diesel prices in the state. The state average rose half a cent to $2.53. The national average rose half a cent to $2.41. Illinois has the 14th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon (though D.C. is getting close).
January 5th, 2009
Looks like it, as it’s closing in on $48 today. There are several possible reasons, says Phil Flynn:
- The Russian-Ukraine conflict over natural gas.
- The Israel-Gaza conflict, and Iran’s call on oil producers to withhold oil in response.
- The threat of *another* OPEC production cut in February.
- General optimism about the economy with the new year, and a sense that there’s a lot of investing money on the sidelines looking to buy something.
He’s not sure $50 will hold, but I personally think it will - there are too many negative factors going on, and at some point the market is going to have to jump on that, no? Though Mr. Flynn is far more experienced and knowledgeable than I am. We’ll see what happen.
Gas prices are up all over northern Illinois. Here’s the damage (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford rose almost five cents to $1.83 a gallon, the highest it’s been in more than a month. We have the second-highest gas prices in the state and we’re tied as the 55th-highest of the nation’s 250 metro areas. The Illinois average rose three cents to $1.81. The national average rose more than a cent to $1.67. Illinois has the ninth-highest gas prices in the nation, including the District of Columbia. Only Alaska and Hawaii remain above $2 a gallon.
Diesel: Rockford dropped almost three cents to $2.42 a gallon. We have the fifth-highest diesel prices in the state. The state average dropped a cent to $2.52. The national average dropped almost a cent to $2.40. Illinois has the 14th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
January 2nd, 2009
Allegiant Air just released its schedule through July, and there’s good news for Chicago Rockford International Airport. While it’ll mostly remain behind 2008 levels in departures through the spring, things pick up dramatically in the summer. Allegiant is scheduled to have three to five more flights a week more for most of June and July. That’s simply because fuel prices are so much lower (last year, Allegiant slashed its departures out of Rockford when fuel prices were particularly high). If the economy wasn’t in the toilet, you might see Allegiant expand even further.
Here are the details:
Sanford/Orlando, Fla. - 2-3x weekly in January and early February; 5-6x weekly from mid-February through mid-April (cept for an 8x week during spring break); back down to3x weekly through May; then 5-6x weekly most of the summer.
Las Vegas - 2x weekly through mid-March, then 3-4x weekly until mid-April; back down to 2x weekly in late April and all of May; 3-4x weekly most of the summer.
St. Petersburg/Clearwater, Fla. - 2x weekly until mid-February;3-4x weekly until mid-March; 5-6x weekly the rest of March; 4x weekly in early April; back down to 2-3x weekly the rest of the schedule
Phoenix/Mesa, Ariz. - 2x weekly until mid-February; 3-4x weekly until mid-April; 2x weekly the rest of the schedule (except a 1x week in late April). This is one of the bigger improvements - we lost Mesa service in July, August and September last year.
In terms of overall departures out of RFD, the airport will remain below 2008’s levels until July, barring service additions. But from then on, it should top 2008’s levels. That means traffic will likely be up for 2009 (especially if Allegiant keeps achieving its ridiculously high load factors) but probably won’t threaten the all-time record unless there are some big service announcements. But Bob O’Brien has said 2009 could be a record year, so we’ll see what he has up his sleeve….
January 2nd, 2009
Probably due to the conflict in Gaza, oil and gas prices have spiked this week. Oil is up to $46 a barrel last time I checked, and gas prices around Illinois are flirting with the $2 a gallon mark. According to gasbuddy.com, some stations in Chicago have moved up to $1.99 a gallon, and I expect others to follow. Prices in Rockford jumped to $1.89 a gallon. We’ll see how this plays out around the state.
This is as good a time as any to talk about the difference in prices between Chicago and Rockford, since I got another email this week from a reader on the subject. Sure, there are going to be occasions where gas prices in Rockford are around Chicago’s prices - those are blips in the radar (see below how, at the end of yesterday, Rockford was actually lower than much of the state … neither blip tends to last).
A key driver of the difference in prices is taxes. The Cook County area of Chicago has 11 cents per gallon extra in gas taxes. It also has a sales tax that’s 2 percentage points higher than Rockford’s. The latter actually isn’t a big deal right now - when gas is under $2 a gallon, that tax difference isn’t quite 4 cents. When gas was around $4 a gallon, the difference is much more. Interestingly enough, the sales tax difference between Rockford and Chicago was only 1 percentage point before July.
Another key component of the difference is the different blends used in Chicago versus other parts of the state. But that’s only in the summer - in the winter, it’s not a big difference in gasoline between Chicago and other parts of the state. So you’ll see more of a flattening in the winter.
Finally, I talked to Bill Fleischli, executive vice president for the Illinois Petroleum Marketers Association/Illinois Association of Convenience Stores, and he said Chicago doesn’t see quite as much of a demand drop in fuel than other parts of the state - think of all the business and commerce that has to go through there. Higher demand in this case is actually keeping prices down a bit because retailers can move more volume than other parts of the state - and are forced, by a very, very competitve market to keep prices down more than they would otherwise.
That may seem counterintuitive - after all, prices are typically higher when demand goes up nationally over the summer. But that’s because one of the many reasons high demand causes high prices in the summer is because it’s a check on consumption to keep supply flowing. If prices were too low, demand would increase further and supplies would get shorter. But in this case, demand is still pretty low and retailers want to entice motorists to shop at their stores. Expect prices in Chicago to rise more in the spring and summer.
Complicated? You betcha. But there are generally good reasons why prices are what they are. Also remember to look at price differences over the course of time, not just in isolated moments. Things have a way of balancing out - with Rockford generally in the top third of the state, but not the worst off.
Here are the now-outdated prices as of the end of yesterday (courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford dropped half a cent to $1.68 a gallon. We had the seventh-highest gas prices in the state. However, we’re up to the 74th highest of the nation’s 250 metro areas. The Illinois average rose more than two cents to $1.71. The national average rose a cent to $1.63. Illinois has the 11th-highest gas prices in the nation, including the District of Columbia. Only Alaska and Hawaii remain above $2 a gallon.
Diesel: Rockford dropped four cents to $2.43 a gallon. We have the sixth-highest diesel prices in the state. The state average dropped almost three cents to $2.53. The national average dropped almost a cent to $2.41. Illinois has the 13th-highest diesel prices in the country. Only Alaska and Hawaii remain above $3 a gallon.
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