Despite prices, U.S. demand for gasoline is soaring

[Regis Philbin]

http://www.latimes.com/business/la-fi-gas11jul11,1,6394842.story?coll=la-headlines-business

Growing Demand for Gasoline Keeps Pump Prices Climbing

By Ronald D. White, Times Staff Writer
July 11, 2006


As motorists around the country dig deeper to fill up, analysts warned Monday that rising gasoline prices wouldn't make a U-turn anytime soon because of brisk demand, tight supplies and expensive oil.

"Last year, people were saying 'no mas' to gasoline prices. Now, they are just saying 'mas,' " said Automobile Club of Southern California spokesman Paul Gonzales.

California drivers paid an average of 3.5 cents more Monday for a gallon of self-serve regular gasoline compared with a week earlier, and the average U.S. price increased 3.9 cents a gallon, the Energy Department said.

That put the average cost of self-serve regular gasoline in California at $3.224 a gallon, almost 70 cents above the year-earlier level, according to the government's weekly survey of about 800 U.S. filling stations.

The U.S. average reached $2.973 a gallon, up nearly 65 cents from a year earlier. It was the highest U.S. average since Hurricane Katrina pushed gasoline to a record $3.069 a gallon Sept. 5.

The Energy Department said that gasoline was cheapest in Gulf Coast states at $2.85 a gallon, up 2.5 cents for the week.

California had the most expensive gasoline in the survey, which didn't include Hawaii, where prices usually top those in other states.

Despite the fuel-pump sticker shock, gasoline demand — the estimated volume sold at the wholesale level — was robust during the week ended June 30 at more than 9.6 million barrels a day, the Energy Department said Thursday.

[pinky]

Wait a minute.....in your other thread about gas prices and the expected environmental impact, that analyst said this:
"We expect 2006's price surge to be less severe than 2005's, but more severe than any other year on record," Lundberg said in a report. "While we don't expect retail gasoline to revisit the $3 level in 2006, we do expect a 57 cent hike by July."That article also said that prices are around $2.20 per gallon.

Now, I wasn't a math major in college, but I'm pretty sure that a national average price of $2.973 is a lot higher than $2.20, and real close to the $3.00 per gallon level that your other "expert" analyst said we wouldn't see this year.

[Regis Philbin]

That was a 2005 article, dear...the price data is out of date but the jist of the article remains true. Refineries have to blend umpteen different blends of gasoline for all these states and cities that have different environmental regulations and that costs money---which is passed on to the consumer at the pump. :o

[pinky]

Oh, honey, the so-called "expert" said we wouldn't see $3.00 a gallon this year. there has also been nothing like a 57-cent hike so far this year. It's just stayed at about the same level since Katrina.

Obviously, you're contradicting yourself with these two threads. Why am I not surprised? Read and think, then post!

[db44]

Talking like a married couple, how sweet. :tongue:

It's a hard comparison to make Brad. It's not like gas is a luxury. It is a necessity in our modern society, and at this time of year, when kids are out of school and families travel, demand will always be high. The summer holiday is a time to spend and I doubt families which look forward to it who can afford to take trips (via car or plane) would cancel their plans.

[Annoyedlistner]

Talking like a married couple, how sweet. :tongue:

It's a hard comparison to make Brad. It's not like gas is a luxury. It is a necessity in our modern society, and at this time of year, when kids are out of school and families travel, demand will always be high. The summer holiday is a time to spend and I doubt families which look forward to it who can afford to take trips (via car or plane) would cancel their plans.

i sure as hell plan on taking a week off of work and heading to the beach in Sept...although gas prices arent going to stop me from taking my vacation which i work all year for and deserve...gas prices are going to keep me from spending as much money while im there.....i have a feeling more meals will be cooked at the condo instead of going out to eat....less putt putt games...less t shirts being bought....most of my time will be either spent on the beach or by the pool instead of doing the tourist stuff.