Gas falls 48 cents across U.S. in two weeks; highest prices at Alaska pumps
Published Sunday, November 9, 2008
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Stumble It!CAMARILLO, Calif. -- A national survey shows gas prices took a dramatic tumble across the nation in the last two weeks, falling by 48 cents a gallon. But Alaska still has the highest prices.
The average price of a gallon of regular gasoline at self-serve stations was $2.30 Friday. Mid-grade was at $2.44 and premium was at $2.56.
That's according to the Lundberg Survey of 5,000 gas stations nationwide, released Sunday.
Diesel was at $3.19.
Gas was cheapest in Tulsa, Okla., at $1.89 for a gallon of regular. It was most expensive in Anchorage, Alaska, at $3.14.
The California average was $2.57, down 61 cents from two weeks ago. The highest was in San Francisco, at $2.65 for a gallon of regular while the least expensive was in Stockton at $2.30.
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On the Net:
Lundberg Survey: http://www.lundbergsurvey.com
Community Discussion
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Please, fellow Alaskans. Someone explain to me why we have the highest prices and why we "allow" it.
I'd like to know too, Truth. This is cr@p. I filled up today down here in Missouri and paid $1.99/gallon. You guys produce the oil. Yeah, you get the yearly Permanent Fund checks, but that doesn't even begin to touch the disparity here. Why is there such a difference? Are your taxes per gallon extremely high? Ours are about 30%.
Can you say greed
Goldstreamer01 could be right. Corporate greed, I'd add. Or maybe it's corporate revenge. Maybe the oil companies are getting back at Our Sarah for her mavericky standing up to them. In another DNM article, Governor Palin says she hopes to work with Obama on energy. Coming from the state with the highest gas prices, I don't think she would have much useful advice to offer to Obama. But maybe she'd have some advice for the oil giants: wink at the people and bribe them and they'll believe anything you tell them.
I have friends in Washington state paying 1.98 a gallon. I think at think point it would be cheaper for them to buy it and mail it to me rather than keep buying it here.
With the Clintons backing Obama, I'm sure Hillary will nix any involvement with Sarah.
Folks, you can thank the billionaires Charlie and David Koch, who Fortune reports have at least 19 billion dollars each.
These are the greedy guys who own the North Pole refinery. It would seem that they hate the people in the Interior.
Maybe it is time we ask DNR to stop selling Alaska's royalty oil to the refinery. When does the current contract expire?
Let the refinery try and get its feedstock from Exxon.
When I left OKC last week gas was just starting to dip under 2 dollars a gallon. Now I see it is at 1.77.
Susie77...No we do not have high taxes, as a matter of fact the state tax was suspended back in August. It is pure unadulterated greed on behalf of the oil companies.
The villages are bearing the brunt of the pain. While we here in the populous areas see fluctuations in the price, their fuel was delivered this summer when prices were at their peak unfortunately. A 5 gallon can of gas runs 50 dollars in Arctic Village, if you can find it. Not to mention the 1 dollar per KWH for electricity, when the generators are running.
Gods, shortpath, that borders on criminal. I got ripped off here too on my propane. In mid Sept., I was sold 243.9 gallons for slightly over $1,000.... at a time when price per barrel of crude was dropping, and refined car gasoline was a bit under $3/gallon. Now crude is less than half it was then... but guess what? I'm still paying $200/month (budget billing and we have mild winters here) for that propane. I notified our state's atty. general but never heard anything back... surprise.
Ron Paul looks good to me too.
So I thought that there was supposed to be some kind of investigation into our high gas prices here...Whats happening with that?
Where's Sarah?
It's starting to really tick me off that nothing is being done. The gov't, in my mind, should play a very limited role in people's daily lives. This is one of those occassions, however. The gasoline retailers are engaged in a monopolistic enterprise. It's interferes with free-markert capitalism and rips off the consumer. It's the reason why we have consumer protection attorneys at the AG's office. When is something actually going to be done. I'm tired of Jay Ramras talk around in a big circle about this. It's time our elected officials broke up the trust.
And we are happy to see gas drop a nickel, go figure. I am sure Ramras, Kelly, Coghill, and the likes will be all over this like they always have proved themselves to be.
N-O-T!!!
We deserve how we get treated!
And you thought you were going to get to reap the benefit of low gas prices when the two companies in Alaska know most people up here got an extra $1200 each to help off set prices. Wonder what it will be like if Flint Hills does close it's refinery and we are left with one producer.
For those of you new to Alaska, ask some of the old timers what prices looked like before the State started getting income from oil.
DracSlack: Sarah's taking a long weekend. She deserves one, too. Because on Monday she's going to have to face the Alaska music.
Susie77, when are you moving to AK?
ButterToes, welcome.
Read this link, it has some information on the investigation. The article is at the very top of the site.
http://www.fairbanksgas.com/index.php
personally i would have rather gas prices dropped to under $2/gallon than received an extra $1200 from sarah and co. i would have ended up saving more money that way
No one has a chrystal ball to predict: local, state, national or international events. Hind sight is 20/20.
Per the laws of supply and demand, with a refinery at North pole we should lead the nation in inexpensive gas. Not only would that help us, it would increase the Tourism business. Costs should be based on the location of the supply, the location of the refinery, the cost of transport to said refinery and on to the consumer. Since we pay the most , you would all think we were in Florida. We are the closest, but we pay the most.We are getting the shaft on this one ..Big Time, If Sarah is going to redeem herself, she can start there. Stay Frosty Friends....
Economist are now saying the US debt could double in the next year to $1,000 billion. Warren Buffet has lost 77% of his companies wealth, a share has dropped from $3,000 to about $650. Some how gas prices may soon be the least of people's worries. Have a friend in Germany who e mailed me and said the problem there is they have a lot of things to buy, but people don't have the money to buy them. At least Fairbanks hasn't gotten to the point yet, where you don't have the money to meet basic needs.
Someone else is getting our money on this Oil thing. It is high time we find out who it is and get it back. Lower fuel costs will mean more money to spend as we need to , to care for our families. It will then boost the local economy, more business will translate to more local jobs, as the cycle continues,more investment from outside sources in the local economy, and as local businesses grow, the competition will help lower other costs as well. Competition for local workers will raise wages and benefits. A strong local economy is the best source for jobs, increased wages and benefits, and continued growth. So let's find out who is squeezing us and give them the squeeze.. Stay Frosty Friends..
As long as there are to many people, that line of thinking will never happen. Jobs will be few and wages will continue to fall and pretty soon people will get even meaner.
The oil companies are reaping the rewards of their hard work and risk taking. It's the free market, it's capitalism, it's the American way. Just ask any republican they'll explain it to you.
To those who think gas is high, Where is Sarah ? Jay Famous, I would like to know ... Let's Talk Gas Gouging ... The price has gone down... yes... but, not enough ... what is it with you "Big Guys" that have deep pockets ...
I am burning wood to keep My Money from the "Big Guys" ... You can keep your Oil ... I don't need it ...
I am just a small person ... You will not get my Money ...
CEO, You haven't called me... No Balls... Yes, I kept the Spanish version out of this ... That is Balls for English ... My Number has not changed ...
Sarah ... what is your Problem ? ... can't communicate on our level ... Put on your real clothes and help us out here ... "Big Oil"... Is Ripping us off ... What are you going to do ? ...
Now that you are back in Juneau/Wassia ... What are you gonna do ?
Smoke some of that rich Erb ... or Help Us...
I Don't expect this comment to stay long... but to those who view it...
May God Bless and keep you safe....
Terry
Does anyone understand:
It costs the State of Alaska about $10 per barrel to have your royalty oil pumped and delivered to the North Pole for processing.
The State of Alaska sells your royalty oil to the refineries at the current OPEC price of about 60 dollars.
The refineries refine the oil and sell it at a price high enough to recover their whole sale crude price of 60 dollars.
The state of Alaska pockets a 50 dollar profit!
If you buy diesel at 4.20 per gallon at the pump.
3 dollars of the 4.20 is a hidden royalty oil tax paid to the State of Alaska!
So who is ripen you off? The "oil companies" or the state of Alaska?
That $1,200 you received represented about 1/4 the amount of hidden royalty oil tax you paid in the last year.
In cause you have NOT noticed the cost of everything has gone UP!
It has gone up because all businesses pass their cost of heating fuel on to you as part of their price! And, because everything is imported the cost of freighted goods has gone up to cover transportation fuel costs!
WELCOME TO THE PEOPLE'S UTOPIAN ------SOCIALIST STATE OF ALASKA!
The high price of fuel is for your own good per 38.05.183.(e) Sale of Royalty.
Wait, Alaska has socialist tendecies? According to queen Palin Obama is the socialist. Oh am so confused. What is a concerned citizen to do. I know ,I'll continue to vote for corrupt politcans who are to stupid not to get caught with their hands in the cookie jar. Oh wait we just did that.
One other thing:
OPEC ran up the price of crude at the request of the global warming moment and the UN to cut Co2 emissions by reducing oil consumption.
Those guys in their bed sheets took you all for at least a few trillion dollars into their pockets.
Fell better now!
Your suffering has saved the planet!
And stopped the current warming trend during the current interglacial warm spell which stated about 20,000 years.
The Polar bears are safe!
FreeDarfur--
"Warren Buffet has lost 77% of his companies wealth, a share has dropped from $3,000 to about $650."
You got suckered believing CRAP on the net.
BRKB was trading at about $4,000 it is down to about $3,700 PRE share!
Ref:
-http://finance.yahoo.com/q?s=BRKB
You mean Palin4prez doesn't comment on stories like this?
"If you buy diesel at 4.20 per gallon at the pump.
3 dollars of the 4.20 is a hidden royalty oil tax paid to the State of Alaska!
So who is ripen you off? The "oil companies" or the state of Alaska?"
That is one way to look at it, but lets say the state decided to let the refinery have the oil for 10 a barrel. What would keep the refinery owners from dropping the price just a little and pocket the rest? As long as we the citizens do not own the refinery we will never have control over the prices. I would rather the state just give us energy dividends each year then to have some billionaires skim profits from Alaska's share. Also how do you keep separate the cheap state oil for heating fuel and gas from the crude that goes to manufacture jet fuel for cargo flights etc? I do not want the state share of crude helping to fund the import of Chinese junk via cargo flights coming into Walmarts across the land.
Someone ask why we allow the high prices for our fuel..
This offers a goody reason why..
It is about GMAC (General Motors finance arm) and it's bond ratings!
-http://www.bloomberg.com/apps/news?pid=20601213&sid=a_AUFalIF.Dg&refer=home
"So who is ripen you off? The "oil companies" or the state of Alaska?""
"The state of Alaska pockets a 50 dollar profit!"
Fox,
If the state gave the oil to the refinery, would that not be just like what Venezuela does for its citizens? There is a difference, they also own the refinery. BEWARE OF SOCIALISM IAKFOX! It can creep into the society in subtle ways and it wouldn't be too long and we would wake up to find we have free health care, 50 cent heating oil, or some other travesty.
akbearable--
There was a time then the OPEC price sank to 10, 15,20,30,40 per barrel. The retail price followed some what. When the OPEC price went to half; the retail price did fall to half.
This state does NOT have any price gouging law; and if it did no governor has the testicles to enforce it and no legislator has the spine to pass an effective law.
You might want to reflect upon this question: why wasn't hidden royalty oil
tax brought up during the campaign?
This link goes to "Biofuels" etc A detailed discussion with a Shell Oil co. rep.
-http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5040501.ece
"There was a time then the OPEC price sank to 10, 15,20,30,40 per barrel. The retail price followed some what. When the OPEC price went to half; the retail price did fall to half."
Which retail price are you referring to? I seem to remember complaints about the refinery price gouging almost since there was a refinery in N.P.. It usually would flare up months after a big decline in crude while the local prices were frozen high. I also remember them selling Mapco gas in Anchorage for 15 cents less then Fairbanks. What a ruckus that stirred.
Good article AKfox, we are going to need to do something, like it said, with 9 billion soon to be populating the earth and all. Today's energy crisis reminds me of one I read about in eastern Europe about 400 years ago when they used up most of the forest for firewood. That spawned a new invention, the masonry heater, which extracted upwards of 90% of the heat out of the fire into the house. We are going to need serious investment from somewhere to fuel the next 10, 20, 30 years. I am happy to see Shell doing this, or at least saying they are doing it. Maybe with "peak oil" the oil companies will all start looking at alternatives. Hopefully they are long term good ones like the masonry heater was in the 17th century.
You just have to love the continuing price gouging in Alaska, national prices continue to drop. Yet, why is it that on Friday local prices for diesel was $4.12 avg, to $4.33 again, by the way diesel is 2.79 avg lower 48. Amazes me that none of our politicians are actually doing anything about it.. It surprises me that alot were reelected. Yes local refineries, gas stations and local distributors are ripping us off, completely shamelessly. In Texas, they're enjoying Gas for less than $1.89, the produce oil and gas, yet we Alaskan are paying $3.12 and produce a lot more oil for export, yet, we are paying higher prices. Once again, politicians and our governor is not listening.
So with all the complaining etc. what can "we the people" do? I still say that even though it is a ridiculous idea, but people should park their cars at the gas station pumps for extended periods of time. Sort of a "sit in". This MUST stop. My friends in KC, MO are paying 1.81 today!!!
In the past 24 years, I always filled all my vehicles fuel tanks and obtain a reciept and write down the odometer reading as I keep up with the mileage, consumption, and purchases and can tell you every aspect of accounting upon my purchases over the years and still have them on file.....
There are a wide range of fluxuations across the nation as state tax, sales tax, etc. are different and even the processed gasoline rate itself is broad in different areas.....
Oil commodities pricing is suppose to be a futures market, however since Hurricane Katrina happened in Aug 2005, the price of fuel jumped 30 cents a gallon here overnight (with no disruption in Alaska Crude Oil supply) as it is supposed to take 1 to 3 months for the delivery crude price to readjust to the posted future market price, so it has clearly been a 'overinflated reaction' market the past three years due to world market demand.....
Sometimes Alaska gasoline prices are the lowest in the country, sometimes not... I remember when there were surges in gasoline prices in the past, Alaska market prices were the last to adjust to the peak price when the price went up as the rest of the nation was seeing, and Alaska gasoline prices were the last to readjust to the lowered gasoline price when prices went down again - that was the same trend as always ... until this year : 2008.
What mind boggled me was how Alaska was the first region to reach the $4.00 per gallon mark back in May 2008, before any other state or region seen the $4 mark - as Alaska only has an 8.5c per gallon state tax as other states have higher rates, as high as 35c per gallon the last I knew.
California was the first state to see the $3 per gallon mark in 2007, as Alaska finally made the $3 per gallon like two months later before the gas prices fell down to the $2.30 per gallon mark here last winter....
Don't worry everyone -
OBAMA will fix it!
He will fix everything:)
YEAH RIGHT!
www.infowars.com
www.prisonplanet.com
I remember in 2002 when Alaska local prices here were $1.45 per gallon, and in more remote areas of New York State they were paying $1.20 per gallon at the pump...I was informed that New York State Tax was 31.5 cents per gallon, as I knew Alaska has an 8.5 cent per gallon rate, so I knew this wasnt right... Alaska pays 23 cents less per gallon on adjusted taxes, AND bottom line was this local area was paying 25 cents per gallon more at the pump (so in reality the Fairbanks area was paying 48 cents more 'fluxuation' per gallon vs New york State)...
From what I understand a lot of New York State refineries were processing Arab Crude that arrived on the eastern seaboard as this local area has a direct tap to the pipeline to process crude, so I was thinkin the MapCo Refinery was profiting the majority of the 'fluxuation bubble' at the time (although Arab Crude is one of the purest oil that you can refine 90 pct of it to make fuel as compared to 70 pct to make fuel from Alaska Crude from what I understand).
So after learning just this one aspect alone back in 2002 on fuel pricing, the current market can be and will be flawed just to make more capital for some firm as long as the federal or state government doesnt regulate them, funny how they want us citizens to 'save energy' so they can build more subdivisions to energize the new houses however they tax us on each US gallon of fuel and encourage us consumers to consume fuel and spend more more more.
I got turned on to this MSN website four years ago if anyone by now doesnt know about it, just enter the zip code area of interest and you will see the other regions on price reporting.
http://autos.msn.com/everyday/gasstation...
One guess that I have to blame on (as no one else mentioned yet) as to why Alaska still has the highest gas prices average in the nation and the first to have surpassed the $4 gallon mark is :
The federal government assessed fines, lack of maintenance by cutting corners as well as disregarding to follow standard procedures as well as fabricating inspections of aging pipelines surrounding Prudhoe Bay - you guessed it - I wont directly name the company responsible but they have the same initials as 'Big Puddle' - Us Alaskans are paying the extra $1-2 per gallon of fuel for their mistakes as they didnt want to pay for materials and labor they needed to do in the first place....
With a 16 mile pipeline to replace, im sure that costs a lot of money to do... as well as every Alaska Railroad gondola car was hogged up for 4 months as no local companies could get their hands on one this past spring/summer, in order to transport the pipe by rail and truck it north from Fairbanks, im sure thats included in our are gasoline purchase price as well...
I just cant put too much blame on the refineries for the price gouging in this situation, I dont see them as the full direct cause this time.
but when has the price of diesel ever been more than the price of gas?
The really sad part is that anyone here might actually believe that there is/was a shortage of oil! Newsbreak folks.....there is no shortage! The rapid jump in the price of crude this summer was a result of speculators and deep pocket folks lieing to all of us. My understanding is that there is fuel tankers parked all over the middle east full of oil that they cant even sell. I'd also like to state that I truly believe that the ridiculously high oil prices that we fraudulently were forced to pay for this year has been a solid contributor to many of our nations economic problems we have now come head to head with. The whole thing is a mess and the bottom line is that greed has been the cause for all of it! Someones laughing somewhere and I would guess that someone lives in the middle east!
Waa. Waa. Waa. Move. Please just get the heck out of Alaska. Nobody is forcing you to stay. Oh, and leave your PFD and $1200 gas check before the door hits you in your behind. Nobody will force you to keep it. Since you Liberals detest Sarah so much, it will make you feel better NOT to take her "dirty" money. Please consider giving it to me. I need to prepare for the distribution of my wealth.
Really - it will be for the best. Our taxes are going to go up in the Socialist Boobama reign. All of us middle class worker bees will be asked to give more. It might make the expense of living up here impossible. Hard workers like my husband and I are already prepared to distribute our "wealth". After all we have SO much and others have SO little. I mean, it doesn't really matter that I get my fat butt up out of bed Monday through Friday and work like a dog all day at a job I really don't like very much. I can just keep telling myself that my husband and I combined make over 125K a year - we don't deserve to keep it. We don't deserve to have money in the bank, nice vacations, a motor home or a paid off home before we're 45. How dare I think I can have such luxuries when there are single, unwed mothers out there popping out the fifth squalling brat by the fifth separate deadbeat father. She needs my money more than I do. We can help support lazy, stupid, worthless malingerers that can't survive without our monetary assistance.
I'm going to enjoy the next four years immensely (except for the tax hike). I wonder what the liberal, left wing media will use for their public whipping boy now that their darling has won. They can only blame Bush and the "evil" Republicans for so long. You all do understand that ANY criticism of our new President will be labeled racist?
Before you get too P.O.'d, check out the gas price at the Galena liquor store (the only place in Galena to buy gas) There are some extinuating circumstances, but the last I heard it was still $7.00 a gallon, and will be that until the next barge arrives in May!!!
badger7, did you get onto the wrong blog? This one is about gas prices and gas gouging. I think your friends are over hammering away on the latest Palin news story.
Next time the barge brings gas to Sams Club in Fairbanks in May, I will have to remember what Galena is paying.
It happens because they (the oil companies and Flint Hills refinery) can, and there's not a damn thing we can do about it.
I'd bet the oil companies are retaliating against Alaska because they have to pay the state higher taxes. Please remember that, when you see all the oil companies (including Denali) commercials, trying to convince us how much they care about Alaska and how well they are striving to get us our gas line.
Under normal circumstances, the laws of supply and demand would work, but in our case, when we cut back reducing demand, instead of the prices falling, the excess gas and oil is just sold down the pipe to the other markets.
It's not greed, it's vindictiveness on the part of the oil companies. Pure and simple.
It's not that big a surprise, they're just trying to get their $1200 back from the so-called Energy Rebate. Perhaps we shouldn't have been so eager to get our greasy little fingers on that, eh.
See i was having a pretty good day until about five minutes ago when i started reading this article then i got pissed off i am not allowed to hear about how cheap the states are getting gas for because you guessed it i get pissed and the family has to listen to me gripe about our over priced gas and listen to me call my reps and ask why are we getting gouged and then i get even more mad when my reps office slacky says if i can get proof on paper or tape that the gas stations are gouging us they will step in i will get right on getting info when i reply thats my reps job to find out about this they say their hands are tied and they cant do nothing i again i ask why and i get nothing. So when i calm down i just bend over and take it at the pump cause lets face it it wont stop and we can bitch and moan but it wont stop cause our reps dont want it to stop. Heres a little challenge for you DNM why dont you guys send out a reporter if you even have one to the fred meyer on airport way and ask how they can sell gas a nickel cheaper on the same day as thier old steese site go do that and show your readers you guys can actually do something. Hey jay when you gonna get on here and say something useful and not just retype your standard comment you post. Hey sarah how about you why dont you come on here and say something.
Two friends called today - one visiting in Texas where the price per gallon is $1.99; another from Montana where the price is $2.19 per gallon. I wonder how long Governor Palin's investigation into price-gouging in Fairbanks will take?
If the price of gas is so offensive to everyone, why do I still see people leaving their cars idling in the Fred Meyer parking lot while they run in for tampons and a gallon of milk?
Perhaps it is so they can drive by the Fred Meyer gas station and gripe about the high price of gas in a toasty warm vehicle.
Complain in comfort, I always say.
Why are waiting for the government or the oil companies to do something? Isn't there SOMETHING "we the people" can or perhaps should do about this?
For the record, I have lived in Alaska almost my whole life, but we moved out for about year.. which denied us a PFD and the rebate this year. Oh and I vote republican, so you can take the remarks about leaving the state and stick them in your ear. We aint leaving, but we don't have to be happy about being gouged!
Palin has to pay for all those clothes and jewelry somehow!
WELL JAY WHAT DO YOU SAY? Your last report to the residence in the interior was that your committe did not know why gas was high here.
I don't like being at the mercy of the profitering of a producers duopoly. I think it is time for Alaska to bypass the current fuel supply system. It may not be feasible for the state to buy the Flint Hills refinery because that refinery is not capable of efficiently producing the fuels Alaska needs and it would be too expensive to expand and modernize. Anyway, the Kochs would hold out for an exorbitant price and try to take the state for a bunch of suckers pressed by a ground swell of public demand to buy it. I suggest that the state should consider building a propane topping facility (much less expensive than a refinery) and promote the use of propane for vehicles, heating, and electric generation. Propane is a viable alternative, it is a "green" fuel, environmentally better than gasoline or diesel, less spill hazard, easy to transport, and familiar to most people, proven technology. Vehicles are already available and in wide use in many areas of the U.S. Propane vehicles are easier starting in cold weather and the engines last longer than gasoline engines. Large amounts of propane are available from both North Slope crude and natural gas.
Then build a coal to liquids plant to supply diesel and jet fuel for market and the Marine Highway and the Alaska railroad.
That report is BS I flew to the Oregon Coast this weekend to see friends from Brookings to Astoria. I rented 4 cars and filled them before I returned them, Reg was 3.49 in Brookings down to 3.29 in Newport and back up to 3.69 in Astoria the 3.19 in Portland..Just have to have the right person writing the story and ,,,he** someone saw someone walk on water.....IT'S ALL BS...Prices are still high for everyone.
I agree with Imusuallyright. I never could understand people leaving their cars running in parking lots. If it is too cold out, why don't they dress for the cold? It is a lot cheaper to put on a pair of snowpants and boots, and you don't have to worry about someone stealing your car.
Gee....The Gondolas were full of the pipe to replace the 16 Miles?? NOT! The pipe that has been coming up here all summer and fall is DRILL PIPE & Gathering Line Pipe (12in & Less). The 20 Inch pipe JUST started arriving in the Rail Yard this week. In other words, the 16 miles HAS NOT been replaced.
where is Jay at now? He was on this newspaper forum last month talking gas prices.
Most here should up study on how things really work !!!
Correction "Study up"
Thanks for clarifying that AkOdin.... I was told different.
Read it and weep, "There is no law in Alaska that prohibits price gouging."
"Senior Assistant Attorney General, Ed Sniffen Jr. said that Alaska does not have any laws against price gouging on the books. Under the current laws the refineries can charge whatever they want and there is nothing we can legally do about it."
"mariebarr"---- If you have them mail it to you from the lower 48 you may NEVER get it with the mail service we have!
so five minutes from my house it's $1.99. but I just paid $2.89 on a weekend trip. how is it possible? it's called taxes, people. all I have to do is cross the bridge from NJ into PA 15 minutes from my home and the price goes up about 5 cents/gallon. I enter NY state, and it jumps another 10 cents or so. By the time I got to Buffalo, my destination, it was 90 CENTS more than here! outrageous, yes. but to assume you all are unique is to show that once again, you don't get out much. add to that transportation costs to get it up there (nothing new to you all -- at lest you don't live in Hawaii) and it's worse. And who hasnt been to the bush, where it's either flown and barged in, and is worse still?
Pin from the east said "...add to that transportation costs to get it up there..." Boy, you sure learn something new every day. I thought this was where it came from to start with. I guess non-existant transportation costs added to the price are why our prices are so high.
Re the price.. I mentioned that the retail price does NOT track OPEC price--- exactly.
Last summer #2 diesel peaked at about $5 when the OPEC price was in the $140s. OPEC price is now $65 and the price of #1 diesel it $4.17.
If the prices tracked -- the price of diesel should be about $2.50 -- around half of the $5 peak price!
Who is riping us off?
Looks to me like the State of Alaska with the royalty oil tax and the refinery price gouging?
And, it is done with covert consent of our local legislators! Because they like spending the tax money on interest groups who help put them into office.
At the national level, looks like feds are going to save the UAW, Ford, and GM.
One stock market commentator said, the value of GM's stock is zero ($3.26). Ford ($1.96) owes $25 billion to the UAW pension fund and only has 27 billion in the bank.
In my opinion, their financial decline is mostly tied to the price of oil causing the auto sales to fall!
Also, many people here in Fairbanks have lost their home due to the high cost of heating fuel!
It jumped from about $1,000 to $4,000 per year
in less then 3 years.
7:45 am Monday 11/10/2008
NYMEX gasoline $1.38
Heating oil $2.02
$1.49 in Texas after you adjust for State taxes!
www.texasgasprices.com
The best thing for Alaska would be for Flint Hills to close down their refinery. This would justify the investment of an expanded fuel terminal at the port of Anchorage and we would start receiving regular shipments from the West Coast. The Senior Economist hired by the state during the ongoing investigation estimated the cost to import gas from the West Coast at 5-6 cents per gallon. Shipping by water is the cheapest form of transportation around.
The only thing that keeps our prices in check right now is the small amount of gas that Chevron in bringing in from the lower 48. Without these shipments we are an island and the refineries will continue to extort us. Importation is reason that Hawaii has lower prices than Alaska.
Please Flint Hills, close down your refinery and lower the costs for all Alaskans.
www.fairbanksgas.com
I rest my case: re the amount of royalty oil tax hidden in the wholesale price of royalty crude.
" The Alaska railroad tariff on petroleum products between Anchorage and Fairbanks is $0.087/g. which equals out to 3.5% of the retail price of gasoline.
October 2008 Prudhoe ANS spot price $84.77 - $1.550 - $5.11 + $1.10 - $.07 = $79.14 Flint Hills price [..snip...]."
FROM THIS YOU CAN SEE THE WHOLESALE MARK UP PRICE BY THE STATE OF ALASKA IS
ABOUT $79 IN OCTOBER 2008.
Using my ESTIMATED current figures:
It appears the current ANS spot price is about 68 dollars less the about 8 dollars which makes the hidden royalty oil tax about $60 dollars per barrel.
Ref: (about 2/3 of the screen page down)
-http://www.fairbanksgas.com/index.php
MY THANKS TO FAIRBANKSGAS (DOT) COM FOR THEIR DILIGENT EFFORTS TO PROVIDE SOLID INFORMATION
crosswind -- got any refineries up there? maybe you do, but I am not familiar with them. where ar they located? if so, then I take it back, that's not an added cost. my mistake. we have refineries right here. can't miss 'em, the stink is unmistakable.
I'm grateful were not paying $4.20 still.
Yes, we have several refineries. Flint Hills(owned by the Koch Bros.) has a refinery about 30 miles outside of Fairbanks, Tesoro has a refinery in Nikiski near Kenai, and Petro Star has a refinery in Valdez. Flint Hills produces jet fuel, diesel and gasoline for the airlines, Alaska Railroad, and interior Alaska market. Tesoro produces a variety of products for the southcentral Alaska area and some rural areas of western Alaska. The issue at hand is why the cost of product from these refineries is so much higher than lower 48.
crosswind, thanks, as I have said before, I learn from you all every day. I would still contend that like everything up your way, things are more expensive due to your location. item for item, I would bet your grocery bill at Fred Meyer is far worse than mine at my grocery. and again, why is there such a huge difference in gas prices in just these 3 adjacent states where I live? I trust the other posters here to figure out all the math. but whoever said greed nailed it. we have a station by us still charging 2.39 when everyone else is at 1.99. why? because he can.
Pinhead East - Glad to help. The comments above on this article have been very insightfull. The bottom line assesment seems to be "greed", however the capitalist economy and theory being what it is the bottom line would be called "profits" for the owners and corporate shareholders. That's where the pricing starts, not at the wellhead. Profits first, then costs. There are some anomalies. Fairbanks gas points out that marine transport is the least expensive and reasons that it would be cheaper to import our energy from lower 48 refineries. He says that imported energy from Chevron is the competitive force in our market. But if that is so then why is water transported fuel from Chevron, the fuel that Crowley supplies to riverine and coastal Alaska, the highest priced in North America? Riverine Alaska is paying upwards of $7.50 per gallon and as was pointed out in an early comment, Arctic Village pays $10.00 p/g. Of course, economy of scale, profits, and pure unadulterated greed come into the equations.
wow, Arctic is up to $10!!! unreal. when I first starting going up it was $5.00. I heard several months ago that they started turning off the generator at night to conserve, and at that time I believe it was $8. it's a different world. thanks for the info...
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