June 6th, 2008 12:27pm
Thomas V. Bona
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 03:02pm
Thomas V. Bona
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 06:03pm
Thomas V. Bona
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.
May 29th, 2008 11:22am
Thomas V. Bona
What does the deal between UPS and DHL mean for Chicago Rockford International Airport?
Airport Executive Director Bob O’Brien suspects it’ll mean a boost in cargo coming through here. DHL only flies one plane a day between here and Bloomington. But UPS’s second-largest hub in the country is here, and they already fly about 25 planes a day. If UPS takes on DHL air business, O’Brien said, it stands to reason that more of that traffic would go between UPS hubs. Plus, O’Brien said, Rockford has more room for growth than UPS’ largest hub, Worldport in Louisville.
UPS spokeswoman Christine Hand said it’s too early to say what the local impact is until the deal is finalized.
If you’re a DHL customer, you’ll still apparently be served by that company and its trucks. Your packages will just fly in different planes.
May 21st, 2008 05:55pm
Thomas V. Bona
Rockford gas prices remain at $3.95 at many stations today, a week after they first hit that mark. But over that week, the average price for the metro area, the state and the nation all rose at least five cents. Meanwhile, since Friday, oil prices have risen 11.5 percent. It’s clear that gas retailers are waiting as long as they can to hit the $4 mark here. But as their supply costs continue to increase, they’ll have to pass that on to the customer soon.
Linda Casey, spokeswoman for Marathon Petroleum - which operates several gas stations and a supply terminal here in Rockford - said gas stations are not fully passing the cost along to consumers. On May 13, 2005, oil was at $45.12 a barrel, according to the U.S. Energy Information Administration. Through May 16 of this year, oil prices jumped 166 percent. Gas prices in that period rose only 74 percent.
“We are truly not where gasoline should be based on what we’re paying for it,” Casey said. Basically, retail margins are dropping precipitously, so they’re making less profit on a gallon of gas. But if they raise the prices too much, they scare customers off, and they lose sales both at the pump and in the store.
If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford increased a third of a cent to a record $3.92 a gallon for the metro area. We’re up to fourth in the state, as Peoria ($3.91) and Bloomington ($3.90) slipped behind us. The state average dropped a tenth of a cent today, remaining at $3.98 a gallon and a fraction of a cent shy of that record. The national average rose almost a cent to a record $3.81 a gallon. Illinois has the fourth-highest gas prices in the nation.
Diesel: All prices here are records. Rockford increased a cent to $4.62 a gallon today, while the state average rose more than a cent to $4.61 a gallon. We still have the second highest diesel prices in the state. The national average increased about two cents to $4.56 a gallon. Illinois is tied with the 16th-highest prices in the country.
May 20th, 2008 02:39pm
Thomas V. Bona
According to reports in other media, Southern Skyways has cut its Bridgeport, W.V.-Myrtle Beach, S.C. route and its Charleston, W.V.-Orlando route. In both cases, it’s due to high fuel prices. Rockford’s routes are still on the Web site, and there’s no sense they’re in trouble. However, the airport director in Charleston seems to indicate Rockford’s Myrtle Beach route may stop in Charleston on the way in and out. No confirmation on that, though, and we’re checking on it. Watch BusinessRockford.com for an update later today.
May 20th, 2008 01:33pm
Thomas V. Bona
It’s been almost a week since Rockford gas stations hit $3.95, and still no movement. Yet, oil prices continue to go up, so something’s gotta give soon. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com. Also, let me know if high gas prices have made you change your Memorial Day travel plans.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford increased two tenths of a cent to $3.91 a gallon for the metro area, back to an all-time record. We remain sixth in the state, as other metro areas barely moved. The state average rose a tenth of a cent today, remaining at $3.98 a gallon and a tenth of a cent shy of that record. The national average rose almost a cent to a record $3.80 a gallon. Illinois has the fourth-highest gas prices in the nation.
Diesel: All prices here are records. Rockford increased almost three cents to $4.61 a gallon today, while the state average rose half a cent to $4.59 a gallon. We still have the second highest diesel prices in the state. The national average increased about two cents to $4.54 a gallon. Illinois still has the 15th-highest prices in the country.
May 19th, 2008 02:57pm
Thomas V. Bona
Rockford gas stations seem stuck at $3.95 a gallon, but could the increased demand of Memorial Day traffic push prices over $4? I’d bet on it, given how volatile the market has been this spring. What’s interesting is that recent history shows an inconsistent trend in the run up to Memorial Day:
In 2007: The Illinois average was almost $3.46 the week before Memorial Day, and steadily rose to $3.52 by the end of the week. After Memorial Day, prices fell as far as $2.95 by early July before going back into $3 territory.
In 2006: The Illinois average was almost $2.93 the week before Memorial Day, and prices fell to $2.88 by the day after Memorial Day. Then they rebounded and hit $3 by July.
In 2005: The Illinois average was almost $2.11 the week before Memorial Day, falling to $2.08 the day after Memorial Day. Then they started their upswing.
In 2004: The Illinois average was $2.10 the week before Memorial Day, increased to almost $2.12 the next day and then fell back to $2.10 by Memorial Day. Prices eventually fell as far as $1.85 that September before rebounding.
The takeaway? I have no clue what’s going to happen this week or into the summer. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com. Also, let me know if high gas prices have made you change your Memorial Day travel plans.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford held at $3.91 a gallon for the metro area, a tenth of a cent below the record set Friday. We’re still sixth in the state. The state average rose to a record $3.98 a gallon Sunday, and backed down a fraction of a cent today. The national average rose a fraction of a cent to a record $3.79 a gallon. Illinois has the fourth-highest gas prices in the nation.
Diesel: All prices here are records. Rockford increased another two cents to almost $4.58 a gallon today, while the state average rose haf a cent to $4.59 a gallon. We still have the second highest diesel prices in the state. The national average increased a penny to $4.52 a gallon. Illinois has the 15th-highest prices in the country.
May 19th, 2008 12:59pm
Thomas V. Bona
An observant Belvidere resident noticed an oddity this morning - a passenger train riding on the freight tracks through Belvidere. Moreover, it said something about “George Bush” on it.
That’s the Operation Lifesaver train that Union Pacific is using to raise awareness about railroad crossing safety. The railroad is taking a few carloads of local leaders and dignitaries from Rockford to Union and back today, talking about the Operation Lifesaver program. Tomorrow, the train goes from DeKalb to Clinton, Iowa, and back. I was invited on today’s train, but couldn’t make it as I’m on vigil for $4 a gallon gasoline.
What’s George Bush got to do with it? Well, Union Pacific and other railroads have several special edition engines. One of UP’s was painted in honor of the George Bush (the elder, obviously) Presidential Library and Museum, which opened in Texas in 1997:
And here’s a video of the train in action:
Drive safe out there!
May 16th, 2008 12:56pm
Thomas V. Bona
For the third day in a row, stations in Rockford are at $3.95 a gallon. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com). All prices are records unless otherwise noted:
Gasoline: Rockford jumped another two cents to almost $3.91 a gallon for the metro area, a smaller increase than most areas of the state. We’re back down to sixth in the state, and more places are north of $3.90 than not. The state average increased two cents to $3.97 a gallon, while the national average rose a penny to $3.79 a gallon. Illinois has the third-highest gas prices in the nation, behind only Connecticut and Alaska.
Diesel: Rockford increased another two cents to almost $4.55 a gallon. Every metro areas in Illinois rose today, especially Quincy (up 15 cents to $4.52 … did a few tankers fall into a ravine?). Rockford holds at the second-highest spot in the state. The state average rose two cents to $4.54 a gallon. The national average increased almost three cents to $4.48 a gallon. Illinois has the 16th-highest prices in the country.
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