# Why the sudden rise in gasoline prices? **URL:** \ **Category:** Factual Questions\ **Created:** [August 22, 2003, 8:27pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010 "2003-08-22T20:27:32Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![godzillatemple](https://avatars.discourse-cdn.com/v4/letter/g/49beb7/32.png) [@godzillatemple](https://boards.straightdope.com/u/godzillatemple)\ **Post date:** [August 22, 2003, 8:27pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/1 "2003-08-22T20:27:32Z")
I only fill up once a week and don’t normally notice gas prices in between fillups. I just filled up with premium today and was shocked to discover that the price at my favorite station and jumped about $0.20/gallon since last week. Other stations in the area seem to have raised their prices as much as $0.25-0.30/gallon as well. I don’t remember reading anything about this in the local papers. Is this just a local phenomenon, or is it nationwide? Does it have anything to do with the big blackout we just had? Is this a long-term thing, or just a temporary hiccup (_e.g._, due to the blackout]? Regards, Barry ---
**Author:** ![Hello\_Again](https://avatars.discourse-cdn.com/v4/letter/h/85e7bf/32.png) [@Hello\_Again](https://boards.straightdope.com/u/Hello_Again)\ **Post date:** [August 22, 2003, 8:48pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/2 "2003-08-22T20:48:35Z")
Couldn’t say exactly, but I know in MI, the blackout caused some damage to refineries and I know of at least 1 that is running only at 1/2 capacity right now. ---
**Author:** ![MaryEFoo](https://avatars.discourse-cdn.com/v4/letter/m/ba8739/32.png) [@MaryEFoo](https://boards.straightdope.com/u/MaryEFoo)\ **Post date:** [August 22, 2003, 9:48pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/3 "2003-08-22T21:48:45Z")
It was rising around here before the blackout (and here is California, a long way away). Actually I noticed it rising immediately after the announcement that Iraq had started pumping oil to a Mediterranean port in Turkey, which drew the attention. Estimate, 10-20 days ago. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [August 22, 2003, 10:03pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/4 "2003-08-22T22:03:46Z")
The price of gasoline will rise to whatever level the market will bear. There’s no mystery to it. That’s exactly the reason given by the company (Chevron) I work for. The company’s margin, not the price at the dispenser, is determined by the cost of production etc. Peace, mangeorge ---
**Author:** ![Tuckerfan](https://avatars.discourse-cdn.com/v4/letter/t/eada6e/32.png) [@Tuckerfan](https://boards.straightdope.com/u/Tuckerfan)\ **Post date:** [August 22, 2003, 10:08pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/5 "2003-08-22T22:08:25Z")
> [@](#): > > \*Originally posted by MaryEFoo \* > \*\*It was rising around here before the blackout (and here is California, a long way away). > > Actually I noticed it rising immediately after the announcement that Iraq had started pumping oil to a Mediterranean port in Turkey, which drew the attention. Estimate, 10-20 days ago. \*\* Funny that, the amount of oil available goes up, and so does the price. Anybody know if some OPEC nation decided to _cut_ production at that point? Or is another Enron style disaster awaiting us? ---
**Author:** ![Qburn](https://avatars.discourse-cdn.com/v4/letter/q/bc79bd/32.png) [@Qburn](https://boards.straightdope.com/u/Qburn)\ **Post date:** [August 22, 2003, 11:02pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/6 "2003-08-22T23:02:48Z")
2 Things: East Coast: Blackout Squeezes Gas Supply [http://www.cbsnews.com/stories/2003/08/20/national/main569206.shtml](http://www.cbsnews.com/stories/2003/08/20/national/main569206.shtml) WestCoast: Phoenix Running On Empty(pipeline rupture) [http://www.cbsnews.com/stories/2003/08/18/national/main568834.shtml](http://www.cbsnews.com/stories/2003/08/18/national/main568834.shtml) ---
**Author:** ![frixxxx](https://avatars.discourse-cdn.com/v4/letter/f/eb9ed0/32.png) [@frixxxx](https://boards.straightdope.com/u/frixxxx)\ **Post date:** [August 22, 2003, 11:05pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/7 "2003-08-22T23:05:35Z")
Ever hear of Pheonix…they have no gas and the rest of us are paying to truck it in. BTW, it was a pipeline break…So…here’s my question? If less oil is being used there…we should have more here…less demand and more supply…but I reach. I know there are many different economic and political reasons gas prices fluctuate…but this is ridiculous. ---
**Author:** ![frixxxx](https://avatars.discourse-cdn.com/v4/letter/f/eb9ed0/32.png) [@frixxxx](https://boards.straightdope.com/u/frixxxx)\ **Post date:** [August 22, 2003, 11:08pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/8 "2003-08-22T23:08:58Z")
Man Q…you fast! ---
**Author:** ![godzillatemple](https://avatars.discourse-cdn.com/v4/letter/g/49beb7/32.png) [@godzillatemple](https://boards.straightdope.com/u/godzillatemple)\ **Post date:** [August 22, 2003, 11:31pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/9 "2003-08-22T23:31:59Z")
Thanks for the info. Barry ---
**Author:** ![dnooman](https://avatars.discourse-cdn.com/v4/letter/d/839c29/32.png) [@dnooman](https://boards.straightdope.com/u/dnooman)\ **Post date:** [August 23, 2003, 1:43am UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/10 "2003-08-23T01:43:47Z")
Also this via Drudge Report [http://www.chron.com/cs/CDA/printstory.hts/topstory/2060592](http://www.chron.com/cs/CDA/printstory.hts/topstory/2060592) ---
**Author:** ![ftg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ftg/32/2801_2.png) [@ftg](https://boards.straightdope.com/u/ftg)\ **Post date:** [August 23, 2003, 3:16am UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/11 "2003-08-23T03:16:23Z")
Note that Labor Day is coming soon and gas prices typically spike around that time. And we all know the reason for that… ---
**Author:** ![handy](https://avatars.discourse-cdn.com/v4/letter/h/b5a626/32.png) [@handy](https://boards.straightdope.com/u/handy)\ **Post date:** [August 23, 2003, 3:02pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/12 "2003-08-23T15:02:37Z")
How are you guys doing? We have $2.34 for premium today. ---
**Author:** ![Jinx](https://avatars.discourse-cdn.com/v4/letter/j/c6cbf5/32.png) [@Jinx](https://boards.straightdope.com/u/Jinx)\ **Post date:** [August 23, 2003, 3:56pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/13 "2003-08-23T15:56:23Z")
> [@](#): > > \*Originally posted by mangeorge \* > \*\*The price of gasoline will rise to whatever level the market will bear. There’s no mystery to it. That’s exactly the reason given by the company (Chevron) I work for. > The company’s margin, not the price at the dispenser, is determined by the cost of production etc. > Peace, > mangeorge \*\* I hate to disagree, but that is not how it works with gasoline. It’s not like we, the consumer, have a choice. For example, the competition usually sells gas for about the same price. The gas stations can ask whatever price they like…within reason. If a station pushes up the price a few pennies, the rest follow suit…even the no-name stations. Besides, the price of gasoline is said to be “sticky upwards”: quick to rise, slow to fall. It does not follow the classic “supply and demand” rules. (It’s a controlled market, in all honesty.) - Jinx ---
**Author:** ![SanibelMan](https://avatars.discourse-cdn.com/v4/letter/s/a88e4f/32.png) [@SanibelMan](https://boards.straightdope.com/u/SanibelMan)\ **Post date:** [August 23, 2003, 6:02pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/14 "2003-08-23T18:02:56Z")
Here in St. Louis, all summer long, the gas prices followed about a 10-day pattern. They’d spike to something like $1.57 for regular unleaded, then slowly fall down to about $1.32, then spike up again. In SW Florida, where my parents are, gas has stayed at about $1.52 all summer. Here, it’s been around $1.65 since the blackout. Can anyone explain how the prices are so steady in some places (FL) and so changeable here? ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [August 23, 2003, 6:17pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/15 "2003-08-23T18:17:02Z")
handy: $1.79 for regular here… probably $1.99 for premium. I’m near Akron, OH. ---
**Author:** ![MortonC](https://avatars.discourse-cdn.com/v4/letter/m/6a8cbe/32.png) [@MortonC](https://boards.straightdope.com/u/MortonC)\ **Post date:** [August 23, 2003, 7:31pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/16 "2003-08-23T19:31:06Z")
There are many places to place the blame for the way gas prices rise and fall in the US. Damaged piplelines, ports on strike, lower supplies, expectations of lower future demand, lowered production or holding back for higher prices, power grid blackouts, President Bush’s buddies in oil & gas lobbyists, and on and on and on. But be sure of one thing, if you, the consumer, do not make a public outcry and convince the producers of gasoline to stop damaging the American public’s transportation infrastructure, the end will never come to the rising prices. As Americans, we tend to sit in our living rooms and complain, but rarely go outside just to make our voices heard. Don’t bother to write your Congressman or Senator, they have to listen to the lobbyists and corporate interest campaign contributions or risk not having money in the campaign funds to run in an election. Get yourself out of the house and on TV as fast as you can. Hold a sign up at your local gas station and make the demand for lower prices. Afterall, if you are willing to pay me $600 for a toilet seat and not complain, then I will gladly take your $600 in cash. Tell the controllers they’re out of control and you are now going to take control. GASOLINE IS ONLY GOOD FOR 30 DAYS This can be the consumers advantage over the gasoline price. Almost all gasoline produced in today’s US market is basically only good for about 30 days of storage before it begins to go bad. Use this fact to your advantage when deciding when to buy and how much to buy. STOP BUYING AS MUCH GASOLINE Pool your trips into a shortest route schedule. TURN OFF the A/C when you drive. Carpool or offer someone else a ride when you go to an event. Decide to vacation close to home and use public transit to do it. If everyone starts buying less, the supply is only good for 30 days and thus the price has to fall in order to sell it or lose it. STAGE A PROTEST AND GET EACH OTHER INVOLVED Talk to other consumers when you are at the gas station pumps. See if they want to get together somewhere and make a protest. But try to make it as big as it needs to be in your area in order to draw the press attention. Get on your evening news by being BIG news. BUY A 30-DAY STORAGE TANK Although it’s illegal in most US cities to do so, you can consider a 30-day or smaller storage tank to take advantage of the lower gas price and use it up during high prices. Most pickup trucks can have a secondary fuel tank added. Buy in bulk, but be sure to use it up before 30 days. It’s still gas after 30 days, but the quality will be lessened with time and it could damage most internal combustion engines and their fuel systems if it gets too old. ---
**Author:** ![MarkD](https://avatars.discourse-cdn.com/v4/letter/m/839c29/32.png) [@MarkD](https://boards.straightdope.com/u/MarkD)\ **Post date:** [August 23, 2003, 10:43pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/17 "2003-08-23T22:43:30Z")
I am sure gasoline is usable for more than thirty days. Many times I have not driven my car all winter and it runs fine in the spring…The same with my lawnmower. And Chainsaw. And generator. And weedeater. The neighbors don’t seem to have a problem with old gas either. ---
**Author:** ![Susanann](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@Susanann](https://boards.straightdope.com/u/Susanann)\ **Post date:** [August 23, 2003, 10:58pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/18 "2003-08-23T22:58:45Z")
Labor Day is coming up. Gas prices always go up during a holiday, more profit since people need to buy the gas to go somewhere, cant postpone it. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [August 23, 2003, 11:23pm UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/19 "2003-08-23T23:23:09Z")
> [@](#): > > \*Originally posted by Jinx \* > \*\*I hate to disagree, but that is not how it works with gasoline. It’s not like we, the consumer, have a choice. For example, the competition usually sells gas for about the same price. The gas stations can ask whatever price they like…within reason. If a station pushes up the price a few pennies, the rest follow suit…even the no-name stations. > > Besides, the price of gasoline is said to be “sticky upwards”: quick to rise, slow to fall. It does not follow the classic “supply and demand” rules. (It’s a controlled market, in all honesty.) > > - Jinx \*\* I’m not sure exactly where you disagree with me, but prices _are_ set as high as the sellers can get away with. They generally go up in anticipation of high demand (summertime, etc) and then go down _following_ the decrease in demand (wintertime). Suppliers “seasonally adjust” their prices to the dealers. The free market in all it’s glory. 😉 To say we “can’t do without” gas is nonsense. We’re just spoiled by easy access and low (relatively) prices. As with most things in the USA, I think. ---
**Author:** ![Tuckerfan](https://avatars.discourse-cdn.com/v4/letter/t/eada6e/32.png) [@Tuckerfan](https://boards.straightdope.com/u/Tuckerfan)\ **Post date:** [August 24, 2003, 12:45am UTC](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010/20 "2003-08-24T00:45:36Z")
> [@](#): > > \*Originally posted by mangeorge \* > \*\*To say we “can’t do without” gas is nonsense. We’re just spoiled by easy access and low (relatively) prices. As with most things in the USA, I think. \*\* I have a 70 mile (roundtrip) commute to school, the _bulk_ of the jobs in my field of study are either near where I live, or equal distance away from where I go to school as I am now. There, effectively, is _no_ mass transit in this state. How would propose about my getting to class and work _without_ the use of gasolene? [Next page](https://boards.straightdope.com/t/why-the-sudden-rise-in-gasoline-prices/197010.md?page=2)