The articles are talking about fuel prices. I’m talking about oil prices. Fuel prices are based on numerous factors, one of which is the price of oil. In my comment I stated that oil prices will decrease as demand decreases. Which, to a degree, will decrease fuel prices.

So, yes, decrease in consumption of gas will decrease the cost of oil and eventually fuel… in the long run. In the short term… who knows.

“Gas consumption so far this year is down about 0.2 percent compared to last year, according to the Energy Information Administration.”
http://www.kansascity.com/105/story/585815.html

Vs this

The average price of gasoline jumped 15 cents over the past two weeks to a national average of $3.62 per gallon of self-serve regular, according to the biweekly Lundberg Survey released Sunday.

http://money.cnn.com/2008/05/0...../index.htm

saladdin

If consumers drive less, there will be less of a demand on oil, which means more supply. The issue of supply (or lack of) has been a major driver in oil price increases in the past couple months. More supplies means oil can be sold at a cheaper price, which will flow down to cheaper gas.

So for all you naysayers, driving less not only costs you less, but also drives down gas prices!

Even being a fan of the free market as I am, I never have or will buy the thought that private industry is efficient. For every governmental screwup you can find there is one just as bad in the private world.

In my experience people seem to be ok with govenment support (roads, police, firemen, teachers) but not the taxes associated with those things.

saladdin

A simple way to figure things is this:

Assume you spend $10 at the gas station, then you go to McDonald’s and spend $10 to buy yourself and your kids lunch. You have spent the same amount at both businesses, but…

Exxon will have made just under $1 in profit off your $10 purchase. They will pay $2.50 in taxes and royalties.

McDonald’s will have made $1.60 in profit. I’d have to double-check their latest 10K to see the taxes they will pay, but I guarantee it is far less than $2.50!

Care to guess which company, Exxon or McDonald’s, is “gouging” people?

The fact of the matter is that most consumers are woefully undereducated about how the economy works. They assume if prices are going up, someone *must* be making a huge windfall in profits off of them, and they always point the finger at the most obvious target without bothering to actually do some research to find out if it is true. A few might wait until they get some half-arsed “news” report (most news, especially on TV, is Infotainment at best and downright lies at worst) that appears to validate their assumption before they go off, but many don’t even wait that long.

Your mistake is thinking both groups of people are the same. There are 300 million people in this country. Not everyone believes the same thing.

I, for one, believe very strongly in the free market and the inefficiency of government. Therefore, I oppose universal healthcare (at least so far as it is managed by the government) and I oppose regulation of gas prices. It’s very consistent, actually.

As a side note, I also oppose government subsidies to the oil companies. They seem plenty capable of making money on their own.

Boycotts won’t work and neither will only buying from one gas brand.

Poor Mr. Smith rolls over in his grave everytime someone mentions setting limits to the amount of profit Exxon can make. I never thought I would see the day where we had Congressional hearings asking a company “Why are you making so much money? And pretty please stop doing that.”

saladdin

I’ve cut down on gas usage drastically by deciding not to take part in as many activities that I’d normally get in the car to do. Saves time sitting in traffic and gives me more time to do fun things in my neighborhood or at home.

Also, what happens when we eventually start running out of oil in ANWR? That’s a short term solution at best.

The reason gas has gone up so much is NOT due to increased consumption/demand. It is due to the dropping value of the dollar. Most oil exporting nations denominate their oil in dollars, and since a dollar is worth so much less vs. other currencies than it was 7 years ago, it now takes many more dollars to purchase the same amount of oil. Thus, the price of oil goes up.

If you want lower gas prices, don’t engage in these stupid boycotts, and don’t complain about ANWR, as the increased supply due to opening up ANWR will barely affect the price of oil. Rather, compalin to your government officials, particularly the Federal Reservce and Ben Bernanke, how they are handling the dollar.

Again, the reason for the sharp increases in teh price of oil is caused by the weak dollar. Since 2000, the price of oil has increased 237% in dollars, but only 74% in Euros.

Link http://www.chycho.com/?q=node/1685

The answer (until a technological breakthrough) is more supply. Drill in ANWAR, drill in the Gulf of Mexico, drill at the North Pole, drill off the coast of Florida and California.

Some ignorant politician recently remarked that it would take 12 years to get the oil flowing from ANWAR…but we started talking about it in 1994. Today, that supply would be hitting the markets. Politicians only think about the next election, at most 2 years down the road.

Russia, by contrast, has started drilling in the Caspian Sea, even though they won’t get any significant oil from it for 20 years. They are planning ahead, rather than staring at their navels and hoping things get better…somehow.

Matt, unless you bring the facts about global production, reserves up/downstream and consumption over the last few years to the table. And with that you support your conviction. I’d agree that there is speculation, but on your conviction.

I pay about $4.50 per gallon here in Japan, but it doesn’t matter so much to me because the cars are so fuel efficient. I only pay about $50 per month on gas, even with a 40 minute roundtrip commute everyday.

Although it’s from 2005, check this out: http://money.cnn.com/pf/featur.....gasprices/

So yeah, gas boycotts ARE stupid.

At 6 gallons a week, I can easily absorb $4-5 per gallon gas. If I was buying 20 every week, the story would be different.

I understand this but the price of oil has gone up pretty drastically in the past few years in the order of 2-3 times. I don’t think the consumption increase around the globe is matching that not to mention many of the industrialized countries are stockpiling oil to levels that they probably don’t need.

I’m still convinced that demand isn’t driving the price of oil but speculation.

My fiance and I drive less than 10 miles a day. We put our money where our (rented) house is.

Riding a bike – I’m really concerned for my safety. I’m concerned while I’m driving in a car, let alone while I’m on a tiny bike… plus the extra amount of time it takes. Time is money too!

I don’t know the solution – I do know that we all complain but we all still keep paying whatever price gas happens to be that day.

You can pick up a decent motorcycle or moped for under $1K. These vehicles get 40-60+ MPG! They also cost ~$300-$500 to insure for an entire year!

It’s not for everyone, but if you drive alone and don’t “need” storage capacity, buying a $1K motorcycle and driving that through the summer will save you significant amounts of cash over the next 2-3 years.

Option 2 is buying a $250 bicycle, which is what I did for my trips to work.

The gas boycott is an interesting idea that you’re right will never work. Leaning on our local politicians might have more of an impact though. Writing a letter to your local officials can get the message to the government that the prices are too high and that something needs to be done to curtail the spiral – just an idea