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Gas Price : Now $4.59 per gallon

Remember those debates about whether or not gas would reach $5 per gallon this summer? No? Well, surely you remember when they suggested it might reach $4 this summer? Well, it’s not summer yet, and where I live regular gas has reached $4.59 per gallon already. Check Google News to see all the reports of problems related to the unusual run up in gas prices… you won’t see much.

gas sign showing 4.89 per gallon gas price

Oh sure we up here in the Upper Left Corner of the US are long drive away from refineries on the Gulf coast… transport from those refineries would add significantly to the cost of gas, especially if gas were increasingly expensive. And that’s why we have our own refineries just 5 miles away. Did you notice the picture above is a Conoco station? Yup.. they own the nearby refinery. Remember that thing called the Alaskan Pipeline? Ever wonder where that ends.. where the terminals are for all that American oil? yup.. relatively close to us, since we are the closest mainland terminus for the shipping routes. So why is gas so expensive? I bet it’s not yet $4.59 per gallon near you. I also bet it will be soon.

At $4.59 for regular, things are already starting to break.

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7 Responses to “Gas Price : Now $4.59 per gallon”

  1. Josh Says:

    Here in Australia petrol is about $1.60 a liter (fluctuating up and down).
    1 US gallon = 3.78541178 liters = AU$5.70 a gallon
    1 Australian dollar = 0.939 U.S. dollars
    1 gallon of fuel in Australian = US$5.37

    @josh: I’m not sure what that comparison says…. there are many factors involved in currency exchange and more importantly, costs of living. If the rest of the world views this along the lines of such comparisons, we’re in for an even bigger shock. Take one look at pharmaceutical prices and you’ll get an idea of just how bad an idea that would be… if the whole world had to cover the costs of research and development, for example. Last I heard nations with zero contribution to the costs of development of advanced health care balked at paying thousands of dollars per dose for the drugs they need to stay alive. So we subsidize them… considerably. And it evens out… or used to. And when it no longer does, what will happen?

    I’m not saying it should be cheap gas; I’m saying this instability is bad news, and not all due to market forces.

  2. Merrick Says:

    You’re right, it’s only $4.69 in San Diego for 87 :)

  3. Josh Says:

    yeah i agree with you :) just thought you might be interested in what it is here as well

    @josh yeah, sorry for the edginess… I understand it’s $11/gallon in Hungary and Turkey.

  4. kid mercury Says:

    the reason gas prices are so high is because the money supply (amount of money printed and credit available) has been WAY overextended. this has caused a falling dollar (the primary source of rising gas prices) and excess capital to be pushed into the commodities market, where speculators have created a bubble in oil trading (this is after the excess capital created the nasdaq bubble, then created the housing bubble). there is of course, lots of suppression of supply, as well as suppression of alternative energy sources.

    americans need to realize how bad things have gotten. and it starts with 9/11 truth. but americans don’t want to accept that, so we get the world we have. and this is just the beginning. it’ll keep getting worse until we wake up.

    @kid: In my view the only “perfect storm” acting out here is the collision of excessive greed, fear, tyrrany, medication, and ineffective public school education. As a society we are beyond a “wake up” I’m afraid.

  5. Neil Says:

    Thought I’d share like Josh, just out of interest, I live in France and we pay the equivalent of $8.2/gallon. I’m pretty glad I work from home!

  6. Tsatkin Says:

    I just shipped my car to my father. Thank god I live in the city and do not rely on a car to get around. It turned into a luxury that just doesn’t make sense anymore. Hopefully this will force better public transportation.

    Thanks for the post Jon.

  7. Maddin Says:

    Guys, relax! -All you got to do is get yourselves a bunch of future contracts or options on the rising oil price. What speculators earn the big bucks with on all the markets of the world is very feasible for the private household, too. Just make sure you make more on the rise of the oil price in your portfolio than the increased costs at the gas station. Easy, huh? ;)

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