March 11, 200818 yr I'm no economist so someone help me: Why is it that gas prices make such large jumps, i.e. $3.19 to $3.49? Why does it not simply slide from $3.19 to $3.21 to $3.25, and so on?
March 11, 200818 yr Together with strong economic growth, China’s demand for energy is surging rapidly. The Energy Information Administration (EIA) forecasts that China’s oil consumption will increase by almost half a million barrels per day in 2006, or 38 percent of the total growth in world oil demand. China is the world’s third-largest net importer of oil behind the United States and Japan, an important factor in world oil markets. http://www.eoearth.org/article/Energy_profile_of_China http://en.wikipedia.org/wiki/Peak_oil Demand growth is highest in the developing world. World demand for oil is set to increase 37% by 2030, according to the US-based Energy Information Administration's (EIA) annual report. Demand will hit 118 million barrels per day (bpd) from today's existing 86 million barrels, driven in large part by the transportation sector.[10][11] As countries develop, industry, rapid urbanization and higher living standards drive up energy use, most often of oil. Thriving economies such as China and India are quickly becoming large oil consumers. China has seen oil consumption grow by 8% yearly since 2002, doubling from 1996-2006[12], indicating a doubling rate of less than 10 years. It currently imports roughly half its oil, with predictions of swift continued growth in coming years. India's oil imports are expected to more than triple to some 5 million barrels a day by 2020.[ I bolded a key statement in there. China and India are both growing countries that means their demand for oil is increasing. Now unless the oil barons are fathering all of those children in India and China, they can't get ALL the blame. They deserve some, but not all or a lot. And the President and Congressmen don't either. Now you want to talk not have an alternative energy plan, I would put that blame squarely on the shoulders of the men in office before 2000 who should have had some contingency plan. But that thought has holes in it too.
March 11, 200818 yr Must be a Hurricane a brewing somewhere.......... paid $3.15 this morning in Lexington- Even though I knew gas would go up refused to fill up and only put $30 in the tank.
March 11, 200818 yr I'm no economist so someone help me: Why is it that gas prices make such large jumps, i.e. $3.19 to $3.49? Why does it not simply slide from $3.19 to $3.21 to $3.25, and so on? I have a friend who owns several gas stores. He says he has a profit margin that does not change. It is a certain amount no matter what the price of the gas is. The changes of prices are a result of the changes that the gas is sold to him at. Also, for the small business owners it creates a problem. They have a certain credit limit to purchase gas, sell it and then payoff their credit limit. At $2.50 a gallon and a $100,000 gas credit limit, they coudl purchase 40,000 gallons. Price goes up to $3.00 and they now can only purchase 33,333 gallons. If this weekend's projected sales were 40,000 gallons, they either a) can't cover their projected sales; b) have to come up with more money to put down to increase their credit line.
March 11, 200818 yr I have a friend who owns several gas stores. He says he has a profit margin that does not change. It is a certain amount no matter what the price of the gas is. The changes of prices are a result of the changes that the gas is sold to him at. Also, for the small business owners it creates a problem. They have a certain credit limit to purchase gas, sell it and then payoff their credit limit. At $2.50 a gallon and a $100,000 gas credit limit, they coudl purchase 40,000 gallons. Price goes up to $3.00 and they now can only purchase 33,333 gallons. If this weekend's projected sales were 40,000 gallons, they either a) can't cover their projected sales; b) have to come up with more money to put down to increase their credit line. So this is why my theory of being lowest price doesnt work i guess , right?
March 11, 200818 yr So this is why my theory of being lowest price doesnt work i guess , right? I am not sure what that theory is.
March 11, 200818 yr I am not sure what that theory is. Just being the station with the lowest price. Everyone at 3.15- I would be at 3.00, but your story shows why that doesn't work.
March 11, 200818 yr Author http://www.huffingtonpost.com/2008/03/07/jon-stewart-ponders-bush_n_90395.html
March 11, 200818 yr http://www.huffingtonpost.com/2008/03/07/jon-stewart-ponders-bush_n_90395.htmlThat's all great for comic relief, but I ask: What happened to Nancy Pelosi's and the Dem's promise?
March 11, 200818 yr Author Diesel is up to 4.25 A GAL in the Canton, Ohio area. TRUCKERS STRIKE WOULD BE NICE RIGHT AB OUT NOW.
March 11, 200818 yr Paid $3.24 yesterday here in Ashland. Not sure what it is today. I'm buying a motorcycle or a horse.
March 11, 200818 yr I have not gotten gas in about 2 weeks, butlast time I looked at the price a few days ago it was like 3.13, I am sure it has risen though.
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