Fairbanks finally sees gas price relief
Published Saturday, November 15, 2008
Digg
delicious
Facebook
Mixx
Reddit
Stumble It!
FAIRBANKS — The price for a gallon of unleaded fuel finally slipped beneath the $3 per gallon mark at some Fairbanks stations, following a national trend as crude oil prices continue to fall.
The statewide average price for a gallon of unleaded fuel was $3.221, with a low of $2.984 in Anchorage, $3.080 in Fairbanks and $3.399 in Juneau, according to the American Automobile Association’s Web site, www.fuelgaugereport.com.
Daniel Moschell of Delta filled his SUV’s 40-gallon tank Friday night at Fred Meyer East, where unleaded was $2.98 per gallon — or $2.95, with a discount from the store’s retail shopping card. He was pleased to see the price slide below $3.
“I’m surprised it is dropping as fast as it has,” he said. Prices have steadily declined since October. “It’s pretty impressive. It’d be nice to see it go down more.”
The milestone seems notable as Alaskans watch and wait for pump prices to regain parity with those in the Lower 48 — although we’re not there yet.
Gas prices in Alaska historically paralleled those Outside, hanging only slightly higher than Seattle prices. But costs shot away from a parallel in March 2008 and haven’t regained parity.
The slow path down is under investigation, both by a legislative committee and a state consumer advocacy attorney.
Rep. Jay Ramras, a Fairbanks Republican and chair of the house judiciary committee, is leading the legislative query. The committee held hearings in September and October, and plans to take public comment at a third gathering Friday in Anchorage.
“I’m happy, like everyone, that prices are below $3, but Alaska still has a problem,” he said.
The committee will consider some legislative remedies, including price-gouging and anti-trust rules and government regulation of refineries producing more than 25 percent of the state’s gasoline. The only refinery producing that much gas is Tesoro’s Nikiski refinery.
Ramras cautioned that the committee is only discussing those options, which would have to be thoroughly analyzed for “unintended consequences” before the group makes recommendations to the legislature. At least one refiner has suggested that industry regulation could push private industry to pull out of the business.
“You get into quicksand as soon as you’re screwing around with industry regulation, but the public is demanding a better answer than retail gasoline that is trailing the Seattle marketplace by 70 cents a gallon,” he said.
The lawmakers will tentatively hold an executive session Jan. 5 to meet with high-level representatives of Flint Hills Resources, which owns the North Pole refinery. Flint Hills officials said earlier this year the refinery is losing money, and they are considering whether to sell the refinery or invest in upgrades to boost output and profitability. A decision is expected by the end of the year.
Ramras said the talks with Flint Hills corporate leaders should help the committee better understand how the refining business works.
“It’s such a black box,” he noted. “It’s frustrating.”
He awarded the committee some credit for the falling pump prices in Alaska. The hearings turn the spotlight on high prices, possibly pressuring refiners, middle-men and retailers to adjust costs.
“Ideally what we’re looking for is Seattle pricing, plus 15 cents,” he said. “Then we would feel like we restored historic price parity to the marketplace ... and we’re far away from that right now.”
Alaska’s average prices remain 50 to 70 cents per gallon above Seattle averages.
The state attorney general’s office also is investigating gas prices, but no one was available to comment on the status Friday.
Crude oil fell to $57 per barrel on the New York Mercantile Exchange on Friday. Analysts largely attribute the continuing declines to spending and demand decreases by consumers. Nationally, pump prices hit a 21-month low average of $1.962, according to AAA. The record-high average of $4.114 was recorded July 17.
In Alaska, prices hit an all-time average high of $4.695 per gallon on July 24, compared to $3.221 Friday, $4.066 a month ago, and $3.172 a year ago.
Community Discussion
Newsminer.com doesn't necessarily condone the comments here, nor does it review every post. Read our full user's agreement.
Gasoline prices in Fairbanks would still be over $3.00 per gallon if not for the fact that Alaska has suspended the gasoline tax.
Legislators should be funding a small tank farm at/near the Port of Anchorage so that retailers could bring wholesale fuel up from Seattle. Alaska's gas prices would then not be pegged to the price gouging crooks at Tesoro and Flint Hills.
We should also be building a gas line so folks up here could divorce themselves from gasoline. Using compressed natural gas to fuel our cars and trucks would lower our costs dramatically.
Fairbanks just now drops below $3 while the US average adjusted for state tax has been below $2 for a week now. When you look at other oil producing states you are looking at prices below $1.50 a gallon.
If there was a way to bring in regular shipments of gasoline from the west coast we would not be having this discussion. For centuries marine transportation has been the cheapest way to move goods. The estimated cost to transport a gallon of gas by barge from Cherry Point Washington to the Port of Anchorage is less than 15 cents a gallon. Ten days ago the wholesale price was $1.45 in WA. If that gas was being unloaded today in Anchorage the price at the pump would be $1.45 + .15 transportation + .18 fed tax + .10 retail markup = $1.88 at the gas pump. For 8 cents more we could bring it here to Fairbanks on the railroad and be paying $1.96 instead of $2.96.
Tell the legislature to build a bulk fuel storage facility at the Port of Anchorage so we can end this price gouging for good without messing with regulations that may or may not work.
The fuel industry up here is the John Luvitz of Alaska.
"We have to import rare, extreamly expensive refining chemicals. Ya ... thats right.... thats what it is. Rare, extreamly expensive refining chemicals. Yaaaa....... Thats why fuel up here is so high."
So, let's see I have this right.
We send raw crude oil down to Seattle (OK, maybe it goes to Anacortes instead). It is refined into product, and you want to have that refined product shipped back up here?
Personally, I get more than a little irritated that Alaska sends her resources Outside, and then pays a premium to have them shipped back as finished products.
I'd really like to see a tax levied on all raw resources shipped out of State, and a good sized tax break on all finished products exported. I think it wouldn't take long for us to see refineries, saw mills, smelters and who knows how many other manufacturing plants being built - in Alaska by Alaskans. Once completed, those industries would be hiring Alaskans to produce the goods and we might actually be producing goods (and the associated jobs) instead of shipping our wealth to the Lesser-48.
What is the discount per gallon of gas at Freddie's now?? When we lived up there I thought it was 10 or 15 cents/gallon but according to this article the discount is only 3 cents now.
I paid $1.85 in Minnesota yesterday for unleaded.
Fred Meyers is $0.03 per gal until you hit $100 in shopping then you get a 1 time $0.10 per gal discount
$1.88 in Michigan. Now our Governor wants to add yet another tax on gasoline. We are already one of the highest taxed states as it is.
We pay $2.00 tax per pack of cigarettes here.
Why isn't the Ice Queen Palin trying to at least give the impression she's doing something? or is she too busy going through the clothes to send back to the RNC? Seriously, how can everyone go crazy and support her? We have yet to see anything real about a gas pipeline, and the issues we have at hand, like high fuel prices she hasn't done anything! Not even something that looks good on TV.
We do not have enough barge or rail capacity to bring fuel up from Seattle. Think about it, if there was money to be made shipping fuel in on the Alaskan Railroad it would be happening right now. There is only one rail line from ANC to FBX and that means only one to maybe two trains on a good day. An avalanche, moose in the way, or derailment puts a halt to all the movement. More roads and rail need to be built in the interior.
Daniel Moschell of Delta is surprised that the gas prices have fallen so quickly?????????? What a joke. Gas prices have fallen but not quickly. If you want to see quick wait until oil prices climb and then watch as the price of gas goes up quickly. We are being taken at the pump, for our heating oil and for our electricity. Let us get the gas line in and get a little bit of competition.
Diesel fuel is about 4.00 a gallon ,heating fuel is around 2.60 it is the same fuel!! No road tax. why the difference????
Yes this is about as unjust as it gets. Diesel fuel is still a buck a gallon higher when it use to be way cheaper then gas,MMMmmm wonder if this is because we need heat to survive, they keep the price of diesel, alias heating oil a buck a gallon higher.After building a huge addition to the refinery back in 98 to make millions of gallons a day they are still screwing us for building the expansion. Towns in the lower 48 that dont even have an oilwell, refinery or pipeline with in a 1000 miles are still getting fuel for a buck a gallon cheaper. We need a congressional investigation to see who is sharing the loot? Uncle Ted, of course not, ask him he will tell you. Sorry Uncle Ted for exposing another court battle. But someone is raking in the dough. DAM POOR excuse for an energy commission here in Alaska or what. When you get some one over the barrel everyone takes turns and laughs all the way to the bank...............Thanks you greedy BASTARDS
Big deal it is $2.98 and Ohio is paying $1.88.
Are we paying for Ted Stevens trial???
North Sea Brent closed at $51 Friday, at the rate it is going we could see oil drop below $50 a barrel within a week or two. The Break even point for the Middle East producers is about $22 a barrel. The break even point in Alaska is in the $40 plus range. Will be interesting to hear what will happen to oil production in Alaska when the market price matches the break even price and profit disappears. Seems like this State may have a lot more to worry about than gas prices going down slowly. This State's economy is based on oil and the market is telling oil producers they won't be seeing very much profit.
Energy rebate people! that is what the extra money was for stop complaining! Oh you didn't spend your rebate on energy...sorry... commence complaining
And yet, here in Southwestern Alaska, the price of gasoline remains steady at $5.59 per gallon. In smaller villages, the price also remains steady between $7 and $10 per gallon. When will WE see a decrease like the rest of the United States? I would love being able to pay ONLY $3 a gallon! (Of course, one gallon of milk is $11 so I guess it is all relative.)
Maybe we should put the upper management of the two refineries on trial? If you abuse people, you should be arrested. This black box of murk surrounding the industry is nothing but hiding behind loopholes and using paper to show costs. Anyone who has run a business knows you can lose money on paper and still make a profit. It is time our politicians grew some courage and take on the refineries and quit talking.
How about a class action suit against the two refineries for price gouging???? I am no lawyer, but maybe one is out there who can answer. Once again, they don't need to "talk" to each other to know what the other is charging,,,hell, it's common practice for station employees to drive around and compare prices at gas stations. With only two refineries, it isn't hard to figure out they are both charging the same ammounts.
Keep hammering your legislators. Make yourself a pain in their butt.
We have been getting taken to the cleaners for a while now.
Stand grow a backbone and BE HEARD!
CALL YOUR CONGRESSMEN, Bombard them with snail mail and emails OVERWHELM them!
To answer the above comments on diesel, it's due to the new "ultra-low-sulfur" diesel requirements that went into effect the beginning of 2007. Before this, diesel was cheaper than gas. Now, with the extra refining requirements, it is more expensive. Heating oil is still cheaper than gas because it doesn't have the same requirement to drop the sulfur.
Nice post Crucible.
To blue5011. The is one main line but many "sidings" along the way. I know in the summer while working on the passenger trains that there is at least three trains of fuel, I believe mostly jet though, traveling. Add in the multiple gravel trains going, a few cargo transporting, Princess cruises, and they really keep those tracks busy.
Unfortunately Alaska has no laws on price gouging and very weak anti-trust laws. Our legislature will need to make a law before the attorney generals office goes after anyone. At the hearing there was a comment made that they could be charging $20 a gallon and there is nothing the state could do about it.
Of course no laws regarding on price gouging, that would imply some sort of regulation and oversight.. which as we know is Communism and Socialism.
Someone asked where Sarah was. Last night they had pictures of her lounging around a Florida swimming pool drinking Champaign.
Sure is nice to know that we pay $125,000- plus expenses for a part time governor.
My sister paid $1.77 in Kentucky yesterday. I don't see how $3 a gallon is "relief" for Fairbanks when we have NEVER been this much higher than the lower 48 in the past. What a bunch of hooey.
fspab3, I know there are many sidings and yet there is still only one main line. As I stated before, if there was money to be made, ARR would be shipping unleaded gas right now. ARR does not have the capacity to load it, move it, or unload it. Also, I am sure there are additional environmental and security concerns. Could gas be unloaded at Talketna, Cantwell? How about Healy? The infrastructure is just not in place. The lack of infrastructure is one reason for prices being what they are now. The goods we all want are just not easily transported in the interior. WHY? Lack of roads and railroad. The power-players (oil companies, government, and environmentalists) DO NOT WANT you to have cheap fuel or goods.
Oh, and, my energy relief check DID go into my heating oil tank, thank you. But just because we got some help doesn't mean we should have to squander that money on inflated prices just so oil and refinery execs can get rich.
Yay for Fairbanks and the Railbelt. Those of us, your fellow Alaskans, are still stuck with gasoline and heating fuel over $8 a gallon and upwards in our villages. Again, I am sure I will hear the disgruntled people say, well, if you don't like it move to the Railbelt.
Fairbanks and the Railbelt communities and our villages need to be thinking about a State-Wide Fuel Coop that can lock in the spot market for gasoline that is now at $1.29 and heating fuel that is now at $1.83 a gallon. If we were to lock in those prices now, we could save ourselves a ton of money over the next two years before crude oil prices spike again. We need to buy when the spot market is low and use that instead of being stuck with the ebb and flow of volatile crude oil prices.
Let's work together and get this done.
I'm taking bets that NOT A DAMN THING will happen as a result of the legislative inquiry. Who needs an inquiry to inform us that the oil companies are ripping us off?
..... or rather it's just supply and demand and there is nothing that the oil companies can do about it. LMFAO!
Danthemanratahan, I spent me $1200 on 177 gallons of heating fuel at $6.37 a gallon plus a 6% sales tax. My wife and I will spend the rest of our PFDs to keep our house heated and lighted for the remainder of the year. Many Alaskans in the Railbelt can use their $1200 plus PFDs on things other than heat and light. They are blessed. Again, we need a State-wide Fuel Coop to buy heating oil and gas on the spot market and use that before crude oil prices spike again. It can be done with the right leadership from the state and our local governments working together.
Listen to All the Crying going on here over the Gas Prices!
Remember Obama saying “All you need is a Tire-Gauge to check the Air-Pressure in your tires, and you won’t have to be Spending Money on gas saved!
So stop the Crying and go get your Tire-Gauge!
Wishing All Democrats a Empty Wallet, an Empty Gas Tank AND A “Brand New Tire-Gauge”
A close friend called me from Columbus, Ohio recently.
Told me she paid $1.59 a gallon there......then laughed about it.
Haven't heard from her SINCE I hung up on her......seriously.
We're actually UNDER $3 dollars a gallon for gas?
Goody...goody...ha ha!
How about running the next story on this when we get under $2.
WOW!!
No Wonder Governor Palin gave you guys an EXTRA $1200 in your Permanent Fund Dividends this year!!
You'll Need to have an Extra Thousand JUST TO PAY the Difference in Fuel Prices from Here in Vermillion, South Dakota!!
Now at $1.89/gallon, we are paying $1.19/gallon Less!
With Housing Prices lower, Wages only about $1/hour higher in Fairbanks than here......
I'll Keep Thanking My Lovely Wife for suggesting that it would be a STEP AHEAD to move down here........and I'm VERY THANKFUL NOW!!
Rub it in why dontcha..lol
Slighty off topic:
I was just wondering why there is very little news on the major networks about the impact the Kyoto treaty is having on some countries during the worlds economic crisis?
I noticed a single sentence on the Bloomberg ticker yesterday that said that Japan and a few european countries are now facing a penalty of 46 billion dollars.
Sure hope the new Party taking control along with Pelosi and her environmentalist army fail to get us signed up for that program... we are getting drowned in enough debt under the current crisis without fabricated disasters (global warming)..the Kyoto treaty alone will probably cause more deaths and pain too it's victims then the naturally occurring warming trend itself is supposed to cause.
http://news.mongabay.com/2008/1116-co2.h...
By the way It looks like the only winners of the Kyoto treaty who don't have to pay fines yet, are several eastern bloc countries who are generally dirt poor with low standards of living and lack any real industry capable of coming even close to GNP of the countries being penalized.
How many times you need to hear it, build road and rail infrastructure beyond Fairbanks. Cry because fuel prices are high in Ft Yukon, Venetie, Galena, etc. Well, build a frickin road/railroad/utility easement and prices will be lower. I can see why a gasline from the slope will never be built. Folks would rather cry "the-sky-is-falling", than put what they need in place. Want cheap goods? Put the infrastructure in place to support it... As I said before: The power-players (oil companies, government, and environmentalists) DO NOT WANT you to have cheap fuel or goods.
$8.00 per gal. in Anaktuvak Pass. Some of the small villages to the north can't afford it and are just running out. We probably just got our last PFD for several years.. The subsistence life style may become more than just a point of contention for rural Alaska, it may become a lifeline.
I find it ironic that the same reason people celebrate living in Alaska (i.e. the remote wilderness/lack of city amenities) is the same reason they whine, moan, and complain about living here. Did everyone move here to be miserable? I don't think so ('cause that would need a shrink to fix); but please do not expect living in the last great wilderness on earth to be easy or cheap. Go back to the lower 48 if you want it cheap and easy. Alaska is do-it-yourself country.
For those of you complaining about diesel- look online and buy a bio-diesel still. Final cost per gallon after materials is about .90 after the first 6 months (time to cover the purchase price of the still). My friend had one before I moved and it is an excellent way to recycle your old oil/cooking oil/fry grease/etc. into fuel.
If you don't like the price of paying someone else to refine it for you, do it yourself.
Post a comment
Commenting requires registration.