"The price of diesel has gone crazy...biggest 1-day increases we've seen"

[Bush_Eats_Beef]

Gas prices jump 11 cents

WEEKEND SPIKE ACROSS NATION

By Gary Richards

Mercury News

http://www.mercurynews.com/mld/mercurynews/news/special_packages/gas_prices/12804425.htm

Gas prices soared 11 cents nationwide over the weekend, a sign that the country's overtaxed refineries are having trouble cranking out enough fuel despite a glut of oil on the worldwide market and a major drop in sales at the pump.

Americans were paying an average $2.92 a gallon for self-serve regular on Sunday, up from $2.81 on Thursday. according to the AAA. Prices also inched up several cents over the past three days in California and the South Bay to $2.98.

It's worse for drivers who own diesel cars and transit agencies whose buses run on diesel. That average price in California climbed to $3.39 a gallon Sunday, up 19 cents from a day earlier and four-tenths of a cent lower than the diesel record set on Sept. 8. ``The price of diesel has gone crazy,'' said Jerry Cummings of Rotten Robbie, calling them the ``biggest one-day increases we have ever seen. It looks like we will be in for higher prices and lots of volatility.''

Prices should be dropping. Refinery damage from Hurricane Rita in the Gulf of Mexico wasn't as severe as feared. And the nation's drivers -- stung by prices that for the first time hit $3 a gallon from Iowa to New York after Hurricane Katrina's fury late last month -- have eased off the pedal. Demand in the United States is down by 200,000 barrels a day from a year ago, one of the biggest declines in more than two decades. But there are other worries. Eleven refineries in Louisiana and Texas remain closed, damaged by the dual wallop of Katrina and Rita. That's idled more than 10 percent of U.S. production.

[TheFarseer]

1. Glad to see demand is down

I'm afraid it won't matter. They are going to milk this hurricane for all it's worth. I seriously doubt we will ever see gas below 2 dollars again. Most republicans are still acting like this is a temporary thing.

[DainBramaged]

2. Sec. Of Energy said today 6 months before lower prices

License to steal announced today by the Bishy government. No one is going to lower anything anymore. Face it, they got what they wanted. And we get the short end.

[TheFarseer]

6. Oh, so it's going to get better when driving season

kicks off next spring?? That's just f*cking stupid. I was expecting it to go down this fall before heating oil demand got going but the hurricanes screwed us. I think we need to switch over anything that is using petroleum or natural gas based fuels for power but could use coal or nuclear ASAP

[Richard D]

3. I doubt . . .

. . . we'll see prices hit 2.50 again. They got it high, profits are out of control, and the oil people are very happy. BOHICA, so to speak.

[Skidmore]

4. Last week that R Congressperson who does the energy forums

looking at alternative energy on WJ said something to the effect that he expected regular gasolinet to top $5/gal before all is said and done. All of your paycheck will be going into your gas tank. Will sure cure the obesity problem we have in this nation.

[aint_no_life_nowhere]

5. I feel sorry for guys who own tow truck companies

or any other businesses whose vehicles have diesel engines. They must really be hurting right now.

[TheFarseer]

7. I'm telling you alot of farmers are about ready to fold

Last year they were bitching that a gallon of diesel cost the same as a bushel of corn. This year they are bitching that a gallon of diesel costs double a bushel of corn. How long do you think that can keep up?

[CBGLuthier]

8. farmers and truckers

Those are the ones that scare me the most. Harvesting food will cost more. Shipping that food will cost more.

We could be in for one damn bumpy ride in the coming months. Everything will go up. We will see a return of inflation that will mak the 70s look like, well, the 90s.

If the assholes in charge do not do something and do it fast this could be the beginning of something we do not want to contemplate.

[Lugnut]

10. You're right

My son is an owner/operator. He hauls produce, frozen food and some dairy products. When his costs escalate his hauling rates go up which escalates prices at the grocery store. As he likes to say, if you got it a truck brought it, so it affects prices for consumer goods beyond simply groceries.

[Ezlivin]

9. $3 is the new $2

Once the American public gets "used" to that price, it will continue ratcheting upward.

Oh, there will be some downward movements in price, but the trend will be always upward.

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