I went into a local gas station and asked for a quick $2 sale of gas. (I did save 10 cents a gallon paying in cash!) Gas prices had gone up 40 cents in the last two weeks said the guy behind the counter. I dont know if he was the owner but I continued to ask him why they continue to go up. This was last weekend and he noticed looking outside and seeing all of the tourists coming to the Cape, going to Woods Hole and Marthas Vineyard. He said that they have plenty of money and they dont care if our gas prices go up 5 cents a day. He has just bought $40K worth of gas the other day and all of the local gas stations are marking up their prices.

   I said do you read the papers? Our economy is in a recession, homes are in foreclosure, food prices are climbing and the Cape's major source of income is those tourists now showing up in our motels, hotels and restaurants to enjoy our local weather, beaches and shopping. If they stop coming we would be in a world of trouble! He said this is only the end of April and the long line of cars at the red light means that the cars were going to still come and that they were going to continue to pay whatever gas prices the local gas stations ask. He says that Marthas Vineyard is already at $4 a gallon so $3.53 is a bargain! I thought that this is out of control and this is just getting worse. We never got this bad last summer. I see people siphoning gas in the news stealing it from each other cars. People stealing catalyic converters right from under their parked cars? Is that in our future? Weve got plenty of greed but where is the sanity? when will our government step in to do something? Our economy is being held hostage by the Oil Companies and our president the Oil Tycoon soon to be replaced!

 
This post has been included in Massachusetts Information Barnstable County, MA Information East Falmouth, MA Information
Post is included in group: Realtors®
Post is included in group: The Art Of Marketing You
Post is included in group: Services for Real Estate Professionals
Post is included in group: Cape Cod Real Estate
Post is included in group: Boston Area Real Estate

17 Comments on Gas prices to $4 a gallon by the summer? Plenty of greed but where is the sanity?

APR
29
2008
282,594 Points Outside Blog
Stephen, I guess we will see 5 per gallon before August with end in site.
10:32am • #1

 Dear Stephen,

 The only thing in this economy that is not changing is your and my COMMISSION. Can you amagine?

 I happen to do many rentals on the side this people don't undewrstand that one month  commission is not enough any more.

 With the gas prices I think w are going to $5 very soon.

 Thank you for your post

10:47am • #2
1 Featured Post
I bought a Hybrid but still don't think its helping all that much at these prices!
10:49am • #3

Stephen,

I drive an SUV that gets about 15 mpg...it's pretty brutal right now at the pumps!  In addition, I also have deisel.  It gets better mileage, but the fuel prices for it are about 4.19 a gallon here.  Yikes.  I think it's time to buy a moped.  :)

 

    

 

11:13am • #4
I filled up for $4.19 this morning, I wouldn't doubt that it will go up to $5
12:28pm • #5
Outside Blog
Ive been thinking of buying a smaller car for my husband to drive to and from work.  But then I thought of the additional insurance and money to buy it, maintainance-it might not be worth it.
12:31pm • #6
Stephen, the government is in on it.  We all have to work together if we want to change anything, and that is the hard part.  We have an oil barren for a president and lobbyists paying off the people that we elect.  That's why big oil can make 14 billion in 1 quarter!  We have to work together!!!
12:41pm • #7

Gas prices are a function of the world oil market and basic supply / demand. The government cannot "do something" about a function of the market. Unless you mean they should green light oil exploration projects in the gulf and ANWR and/or help facilitate building some light water nuclear reactors. This would help increase supply and reduce demand. What government solution would you propose?

2:43pm • #8
APR
30
2008

We have to start limiting our dependency on oil. We need other kinds of energy. The goverment can offer incentives for people and businesses to use other kinds of fuel.

 Katie surely you're not suggesting that supply & demand is a righteous reason that ridiculously rich oil companies are increasing prices? that they are not gauging the public and holding our economy hostage? their product- gas is the same product that you bought years ago for $2.25 per gallon or less. We're not getting a better product or better service!

 Sharona I agree with you that the only thing these days that doesnt increase is our commission! why is a real estate commission always negotiable? because Agents make it negotiable! If I go into the local convenience store and buy a gallon of milk is the price negotiable? No you dont have a choice!

 

Cape Cod Realtor sdw1

10:39am • #9
I filled up at $3.75 yesterday at a Indian Reservation.  If I would have filled up at a station not on the reservation the price per gallon would have been $3.99 per gallon!  Yikes, this hurts when most of our job is driving.   When does our commission go up to compensate for the added expense?  Never.  Funny how everything else seems to increase in price but our commission stays the same.  So in essence, every day the cost of gas goes up we experience a pay cut.  I do try to optimize the stops on my route by mapping out the homes on Microsoft Streets and Trips, but even with that the cost is getting unbearable. 
10:46am • #10

Oil companies do not set the price of oil. If they did, the price wouldn't ever fluctuate downward. The price is determined by the world oil market as commodities are traded on exchanges throughout the world. So yes, I am indeed suggesting the supply and demand set pricing for any commodity including oil. This is good because every time price controls are put in place it always results in shortages. You may remember the gas lines of the 70's. As far as reducing dependency on oil, it's true that a reduction in demand would effect price. This actually happens naturally as prices increase. You may notice that as fuel prices have increased, so have the number of small cars and hybrids on the road.

If mandates are put in place for certain types of non-petroleum based energy, there are unintended negative consequences. One example is ethanol mandates in the Energy Independence and Security Act. This has resulted in 30% of corn crops now devoted to ethanol and higher food prices. It takes 450 lbs of corn to fill a 25 gallon tank with ethanol. That much corn contains enough calories to feed a person for a year. It also takes 1.25 gallons of gasoline to produce one gallon of ethanol.

3:52pm • #12
MAY
01
2008

Katie Im still noticing the numbers of SUV's on the road who are going to get clobbered with these future $4/gallon or more prices. And why hasnt congress or our Oil Tycoon Pres Bush suggested setting price controls? and I dont understand how that would result in shortages unless the oil companies wanted it that way?!

8:02pm • #13
1 Featured Post

Katie,

Thank god for your comments.  There is someone else that has a basic understanding of economics and a grasp of the facts.  I thought I was the only one here that has an understanding of the facts.  It is so easy to blame the President, congress, the oil companies, the guy next door with a freaking lawn mower, etc. etc. 

There is not enough room to refute some of the ridiculous assertions relating to oil prices but then we are Realtors on this board.  For some reason people don't want to discuss the facts or principles behind the facts.  It is too mentally challenging.  It is so easy to just lobbed undocumented stupidity back and forth.  It takes real guts to stand up against it and I respect you for it.

I recently refuted the hysterics surrounding global warming and only received a single comment on my blog.  A corresponding blog pushing eco-brokers got all sorts of press without any facts being discussed but they all felt better.

Don't ever back down from the stupidity. 

Tim

8:28pm • #14
MAY
02
2008

Stephen, here is a link to a good article on why price controls result in shortages. Unfortunately, I don't have enough room in a comment box to explain it in enough detail. http://www.econlib.org/library/Enc/PriceControls.html

BTW - Thanks for adding me as an associate!

3:02pm • #15
AUG
09
2008

Here we are into August and finally our gas prices are below $4 per gallon!!

9:29pm • #16
AUG
11
Good morning. Never rely on the glory of the morning nor the smiles of your mother-in-law. I am from Japan and , too, and now am writing in English, tell me right I wrote the following sentence: "A unique handmade clock made from sustainable sources." Waiting for a reply :(, Ansel.
Ansel
7:55am • #17

Leave a response…



(optional)
What does the graphic say?
 
Rainmaker_large

Stephen D White, E-Pro, ABR Cape Cod Realtor®

Falmouth, MA

More about me…

Ocean Blue Realty llc

Address: 14 Nye rd, Falmouth, ma, 02540

Office Phone: (508) 540-1964

Cell Phone: (508) 847-1474

Email Me

My Falmouth, Bourne, Mashpee, Sandwich, Hyannis, Yarmouth & Cape Cod Single Family Home & Condo descriptions & pics, Land for sale, Active Rain Networking & referrals, national Real Estate Market, Economy & Mortgage issues, Real Estate Tech,SEO,BPO's,REO's and Web Interests!






Get the SDW1's Active Rain Blog widget and many other great free widgets at Widgetbox!



Chat With me Now!

Join Active Rain Network

Disclaimer: Steve White disclaims liability for any damages or losses direct or indirect that may result from reading or reliance upon info contained in my blogs or for any inaccuracies of comments and opinions from visitors of my blogs.


Links

Archives

RSS 2.0 Feed for this blog

Find MA real estate agents and Falmouth real estate on ActiveRain.