Gas wars? Or Someting Else?

whodunit · #1 12/10/12, 12:33 PM

Has anyone else seen a dramatic drop in gas prices in their area?

A week or so ago the prices in the town where I work and buy gas had been
very slowly dropping but were still in the $3.42-$3.47 range. I was kind of suspicious it was some kind of post-election phenomenon from the powers that be.

On Friday DW drove there and found that the convenience store that normally is a penny cheaper than anyone else was at $3.19!

I drove there Sunday and went to that store to find it had dropped again to $3.05! I was ecstatic and filled up my tank just to find $2.97 half a mile down the road at another convenience store! I later heard another convenience store was also $2.97

Well, it then dawned on me that last convenience store is brand new (part of a fairly large chain) and just had a grand opening a several days ago. I had driven by that day and they basically in line with all the other prices, so I thought to myself they won't get my business unless they really come in lower.

The other convenience store with the $2.97 price is also part of a large chain, but the one with $3.05 (normally the lowest of all) is mom and pop.

So, it looks like maybe the two chains are going to battle it out and the mom and pop is having to play since they have always been the cheapest in town.

But then as I drove home, I saw gas everywhere from the $2.97 to $3.49 and one of the places is also part of the previously mentioned large chains and it was still $3.15 (18 cents higher than its partner store).

The town closer to where we live has for several years always been a dime cheaper than the town where I work and their prices have remained fairly stable with maybe a few cent drops.

So, not sure what to think- post-election shenanigans or gas wars?

Either way I know I can use the break and will enjoy every minute of it!

Laura Zone 10 · #2 12/10/12, 12:34 PM

3.05 a gallon in northern IA this past weekend
3.49 a gallon last week in IN
3.39 a gallon this week in IN

pancho · #3 12/10/12, 12:43 PM

Gas has been around the $3 mark for months around here. It gets down below $3 every once in a while.
Many people thought when it started dropping before election it was Obama trying to get votes. Now after the election some people think it is him again.

The price of gas goes up and down according to how much we, the people, are buying. When we buy a lot the price goes up. When we slow down buying gas the price goes down.
It is real simple. I don't know why people keep looking for someone to blame and someone to thank. They do not control the price of gas, we do.

comfortablynumb · #4 12/10/12, 12:47 PM

Gas goes up, gas goes down, supply and demand, wall street speculation and lots of other things effect gas prices.

Presidents have nothing to do with it.

arabian knight · #5 12/10/12, 12:51 PM

It is going down because we are going back in the 2 dip of a recession.

simi-steading · #6 12/10/12, 12:55 PM

It's running anywhere from $3.29 to $3.45 average in this area.. I've only seen two place it's the $3.29 and been that way a week at those two, right across from each other.

Darren · #7 12/10/12, 12:59 PM

Quote:

Originally Posted by arabian knight

It is going down because we are going back in the 2 dip of a recession.

I thought we were in the third or fourth dips of the Great Recession.

pancho · #8 12/10/12, 01:19 PM

Quote:

Originally Posted by comfortablynumb

Gas goes up, gas goes down, supply and demand, wall street speculation and lots of other things effect gas prices.

Presidents have nothing to do with it.

Bout time you stopped by for a visit.

plowjockey · #9 12/10/12, 01:27 PM

Frankly, if I'm going to gauge the economy off fuel sales/prices, I go with the price of diesel, since trucks and railroad trains, move the economy - or not.

Road diesel is still well over $4 gallon, at least around here and the company I work for, has been delivering railroad fuel, big time.

It has been that way, for quite some time, now.

MoonRiver · #10 12/10/12, 01:50 PM

I heard late last night that the refiners just dropped the price they charge off brands by 5 cents a gallon. That will force the big brands to also drop their prices.

whodunit · #11 12/10/12, 02:15 PM

I'm not a huge conspiracy theorist, but sometimes the timing just seems kind of odd. Many here believe that corporations are in the bag for the president (regardless of party), so why is it inconceivable that they would throw him a bone, so to speak, right in the middle of the budget talks to make it look like his "plan" is working?

As far as consumers controlling the price and buying more- why would this suddenly occur? Maybe the holidays? That makes sense, but supposedly we are all struggling and many are forgoing credit purchases this year.

If it's the beginning of another dip, does that help me? I have a stable job and am starting another part-time job soon. I commute 125 miles a day, so lower gas prices help me, right? Or does it get me in the pocket somewhere else?

I am actually feeling good about my financial situation, partly due to having finally found a much-needed second job, but also because I am expecting a large tax return in early 2013. It also makes me sad, though, since part of my good feelings are courtesy of the federal government, but that's another thread.

plowjockey · #12 12/10/12, 02:17 PM

Quote:

Originally Posted by arabian knight

It is going down because we are going back in the 2 dip of a recession.

GDP is up 2.7%, the DOW is over 13,000 and holiday shopping is up 9.5%, over last year.

Where's the dip? (unless it's french onion)

Bearfootfarm · #13 12/11/12, 12:27 AM

Quote:

Originally Posted by plowjockey

GDP is up 2.7%, the DOW is over 13,000 and holiday shopping is up 9.5%, over last year.

Where's the dip? (unless it's french onion)

Quote:

The U.S. economy expanded at 2.7% pace in the third quarter, mostly because of higher inventories and exports,

Quote:

Yet the increase in consumer spending last quarter was cut sharply to a rate of 1.4% from 2% originally, while final sales were trimmed to a 1.9% increase from 2.1%.

Inventories rose by $61.3 billion in the third quarter compared to $41.4 billion in the second quarter. Exports were revised up to a 1.1% increase from a 1.6% decline and imports were revised to 0.1% rise from a 0.2% drop. Business capital investment fell a sharper 2.2% instead of 1.3% as originally reported.

Investment in equipment and software was revised to a 2.7% decline from a first estimate of no change. The increase in disposal personal income was revised downfor the quarter to 0.5% from 0.8%. Inflation as measured by the PCE index rose 1.6%, or by a tame 1.1% excluding food and energy.

http://articles.marketwatch.com/2012-11-29/economy/35422115_1_third-quarter-gdp-second-quarter

whodunit · #14 12/11/12, 01:33 AM

When I drove to work today, the tribal station on the highway was at $3.20 and most other places in the downtown area were suddenly all at $3.15 after being at various prices yesterday.

I checked with a co-worker and found that the other stations in the different part of town were still at $2.97.

By the time I left work tonight, one downtown place had lowered theirs to $3.09 and the tribal station was also down to $3.09- just eight hours time.

I heard on the news that nation-wide the prices have dropped I think it was 50 cents in the last month and the average is now about $3 a gallon. We are normally well above the national average.

I wonder how long this will last.

mnn2501 · #15 12/11/12, 08:16 AM

Been just below $3.00 for about a month now $2.95-$2.99 depending on location and brand.

arabian knight · #16 12/11/12, 08:46 AM

I tell ya it is a recession.
How many remember what Obama said about the gas prices were low when he took office?
He said it was because of the RECESSION.
Well prices are dropping again it mUST be because we are going back into a deeper recession.

Beowulf · #17 12/11/12, 10:11 AM

Really?

No one else noticed that the price of gas dropped 10% on nothing but the news that the US will be out-producing Saudi Arabia in energy by 2015?

http://www.reuters.com/article/2012/...8AB0IQ20121112

Gas prices in the Ft Worth, TX area dropped from 3.39 to 2.99 in the week after this story broke. They have since hovered in the 2.89-3.02 range. It's not a conspiracy, it's just that the cat got out of the bag regarding real supply and demand for energy.

Halfway · #18 12/11/12, 10:20 AM

Isn't it funny how we will rejoice at $3 / gallon gas??

Crowd and social behavior is always fascinating. It's tough not being a sheep.

pancho · #19 12/11/12, 10:48 AM

Quote:

Originally Posted by Beowulf

Really?

No one else noticed that the price of gas dropped 10% on nothing but the news that the US will be out-producing Saudi Arabia in energy by 2015?

http://www.reuters.com/article/2012/11/12/us-iea-oil-report-idUSBRE8AB0IQ20121112

Gas prices in the Ft Worth, TX area dropped from 3.39 to 2.99 in the week after this story broke. They have since hovered in the 2.89-3.02 range. It's not a conspiracy, it's just that the cat got out of the bag regarding real supply and demand for energy.

What makes you think the drop in price was because of that story?
Do you think the drop in demand might have something to do with it?

whodunit · #20 12/11/12, 12:23 PM

Quote:

Originally Posted by pancho

What makes you think the drop in price was because of that story?
Do you think the drop in demand might have something to do with it?

I've actually heard it's opposite- that when the economy is whirring along the prices drop. Basically, if nobody is buying, the prices go up to maintain profits. When people buy they depend on volume rather than price.

It makes sense and again speaks of manipulation.