Jump to content
IGNORED

Gas Prices and how low can they go?


RH
 Share

Recommended Posts

Member · Posted

TL;DR:

The world is crazy right now, for multiple reasons. How cheap might gas get?

Long Rambling Text Wall. Unproofed! Read at your own risk or in case of severe bordem:

We are in a very interesting time for many reasons.  Obviously, with the COVID running havoc in the world, nobody is going anywhere.  We're suppose to be on a full lock down starting this afternoon here in NC. I'm honestly not sure how it's changing since it was already suppose to be a quarantine, but now we can do even less as of this afternoon.  Yesterday my wife and I did some final shopping before today. We had to do some pick ups where, as I'm sure you are all aware, associates now come and bring your pre-ordered items to your car. There was nobody out on a Sunday afternoon and around here, that is super odd.  People like to do stuff on Sunday afternoon.

Driving around we were able to seethe gas prices and how in a matter of weeks, they've dropped by  about $.50.  I'm sure it's even higher from the start of the year, and that's probably a decrease of around $1.00 a gallon from where it is now, which is about $1.60/gallon.  Supposedly, Russia and Saudi Arabia are also in a "production war".  I don't claim to be an expert and if you've been watching or reading the news, you probably know as much as I do this topic.  If the two of them are looked in a game of "oil chicken", then oil production can get really crazy... in a time where no one in the world needs a lot of oil anyway because we're not driving anywhere.

I try not to quote headlines without even skimming articles and worse, I try not to mention them without remembering the reference but since this is just idle chitchat, I'll mention that I did see a headline state that we could get to the point where we are globally producing so much oil that we don't even have any place to put it, including reserves.  "Barrels" may need to be practically given away.

I have intended to read up on this topic more thoroughly lately but, ironically, I've not had the time.  Anyone else moderately interested in oil markets and how they run the world?  Where do you think this might bottom out at the pumps?  I have no clue. I'll give a random guess of a national average of around $.75 a gallon.  That might feel impossible, but I assume the major problem is that you usually can't just shut down big production plants for goods like oil.  You can scale back production flow up or down but shutting down complete facilities is a huge problem.  So the supply has to go somewhere.  Reducing gas prices to near-zero profit is one way to try and dump supply.  I honestly have know clue what that equates to at the pump for us Joe Schmoe consumers, but I think it could get really, really cheap if all of these factors are true with Russia and Saudi Arabia.  We'll see.

Link to comment
Share on other sites

Taxes will limit how low the price can go. The state fuel tax is 49.4 cents per gallon here in Washington, one of the highest in the nation but still lagging California (61.2 cents/gal) and a few others.  The fed tax is 18.4 so the give-away price here is about 68 cents.  You still have to pay workers, delivery drivers, electricity for the pumps, etc etc.   Given that, I doubt we'd ever see prices fall below $1.50/gallon.  FWIW, I paid $2.29 yesterday.

 

Link to comment
Share on other sites

Member · Posted
1 hour ago, nrslam said:

Taxes will limit how low the price can go. The state fuel tax is 49.4 cents per gallon here in Washington, one of the highest in the nation but still lagging California (61.2 cents/gal) and a few others.  The fed tax is 18.4 so the give-away price here is about 68 cents.  You still have to pay workers, delivery drivers, electricity for the pumps, etc etc.   Given that, I doubt we'd ever see prices fall below $1.50/gallon.  FWIW, I paid $2.29 yesterday.

 

Yeah, I completely get that everyone's "mileage" will very.  Generally, in the South-East up through to Ohio, we can have some of the cheapest in the nation.  Taxes are always an issue and I think our taxes in NC are around $.40/gallon, where just across the border in SC it's around $.20.  I recall back in 2003 (or so) I stayed one summer with my uncle in Kentucky.  That was the lowest I had ever seen it and I saw gas at $.59.  My wife at that time was in NC and she said it was $.89.  Of course, at that same time due to California being California, I don't think it ever got below $1.00 and was probably closer to $1.20.

You can't ever see "free" gas.  But it can definitely get really, really cheap.

Link to comment
Share on other sites

It never used to be that bad here in NJ until they screwed with the gas tax a year or two ago. I suppose it's still not bad compared to other parts of the country. But before they did that I think we were one of the lowest gas taxes in the country, which was the only positive note in NJ's tax world. The last time I remember seeing it below $2 for an extended period of time was right before or right after the recession I can't remember which. Around the time I graduated high school.

Link to comment
Share on other sites

48 minutes ago, LeatherRebel5150 said:

 Around the time I graduated high school.

Heh - when I graduated from HS it was around 20-25 cents a gallon.   (I don't remember exactly - been awhile.)  Good thing too - I had a powder blue  Bonneville convertible with a 389 and a 30 gallon tank!   "Pumping ethyl" was never the same after that car.

Edited by Tabonga
  • Haha 1
Link to comment
Share on other sites

12 hours ago, nrslam said:

Given that, I doubt we'd ever see prices fall below $1.50/gallon

It dropped below a $1.60 around me here in Michigan. I definitely think we will see sub 1.50 here anyway. I'd be surprised if it dropped very close to or even below $1 though

Link to comment
Share on other sites

Member · Posted
16 hours ago, Tabonga said:

Heh - when I graduated from HS it was around 20-25 cents a gallon.   (I don't remember exactly - been awhile.)  Good thing too - I had a powder blue  Bonneville convertible with a 389 and a 30 gallon tank!   "Pumping ethyl" was never the same after that car.

Jeez man... start the pump, go in and get a hot dog, enjoy and get back to the car just finish topping it off!

Link to comment
Share on other sites

42 minutes ago, RH said:

Jeez man... start the pump, go in and get a hot dog, enjoy and get back to the car just finish topping it off!

Heh - when I first got it it had a 4 barrel carb - the thing would move like a bat out of hell but is sure sucked the gas. Even at that price I had to switch to a two barrel.   

Link to comment
Share on other sites

Right now it is 1.39 where I live the lowest with full tank last at $18.48. I've seen the lowest at .80 per gallon somewhere in Missouri from my Jeep group. Yeah, we are loving the low prices lol. A lot of people have nowhere to go though. So, it does depend on location. Some places are still well above $2.00. I am sure California is one of them.

Link to comment
Share on other sites

Using gasbuddy that tracks drivers my area of the state is topping out at 1.98, but if you go around an hour south of here to elizabethtown then it's like 1.15 to 1.35/gallon.

 

I remember a bunch of whining tools when I moved here back originally at the very very end of 2002 bitching and whining in 2003 when gas went up to like that very range.  My coming from Cali I laugh at people and told them to stuff it as I just left a state where it was around 1.90-2 and no shock the whining stopped.  I was happy seeing those rates as they were like 1995-ish rates I was used to.

Link to comment
Share on other sites

On 3/31/2020 at 4:02 PM, Quest4Nes said:

Lowest i remember is 84 cents a gallon in high school . Filled a small truck up with 15 dollars.

Gas here now is about 1.60

I remember it hitting 79 cents in high school, this was about 97/98. But that was a weird drop for like a few weeks. Usually it was around a dollar in those days. Then I recall it being between $3 and $4 regularly throughout the early-mid aughts. But it had been under 2.50 here (West Michigan) for the past few years, since well before the corona outbreak. But now it's 1.69 I think, at least that was the latest I saw a few days ago. Crazy.

Link to comment
Share on other sites

Just now, profholt82 said:

I remember it hitting 79 cents in high school, this was about 97/98. But that was a weird drop for like a few weeks. Usually it was around a dollar in those days. Then I recall it being between $3 and $4 regularly throughout the early-mid aughts. But it had been under 2.50 here (West Michigan) for the past few years, since well before the corona outbreak. But now it's 1.69 I think, at least that was the latest I saw a few days ago. Crazy.

miss you in fantasy football. COME BACK!!

Link to comment
Share on other sites

1 minute ago, profholt82 said:

Ha! I hope that we 'll actually get a football season this year. I was all jacked up for F1 and March Madness to start, then this crap hit. No Masters either. Daddy likes his sports, it's been rough. 

Did you win FF last year?

no, but I won the year before.

we need the dynasty to come back for some nostalgia

Edited by Quest4Nes
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share


  • Welcome to VGS!

    Play, Make, Collect.

    Here at VGS all kinds of gamers are welcome, and that includes you!

    Join the conversation!

×
×
  • Create New...