Like so many long-term financial impacting decisions based on media-driven tripe, that full-sized gasoline or diesel fueled car or truck you purchased last fall, is about to bite you where it hurts, your pocket book.
As Monday’s news reports that average gasoline pump prices in southern California just crossed the $4 per gallon mark, we’re reminded of subject related reports, just a month or so ago promising the auto buying public that the gallon pump price of gasoline would settle well bellow $3 for the ballance of 2015, and possibly carry into mid 2016. looking to the numbers, those reports may have been B.S. in your region.
According to the Fed, the pump price of gasoline does not influence your car-buying decision
Greater profits are realized for auto manufacturers in SUV, and light truck sales: With Chrysler, G.M. and Ford-built light, yet full sized, and more often than not extended cab pickup trucks and SUVs leading the new-car buying resurgence in the U.S., hundreds of thousands of new, and used car buyers, those that were convinced that purchasing a full-sized, gasoline or diesel fueled vehicle made “Good” financial sense when factoring in historic-low fuel prices, and the higher initial purchase cost of hybrid technology, take note; you’ve been played, and--you’re about to be financially impacted by the cost of rising fuel..
Uptrend began in February 2015
Call me an alarmist if you will. Just this morning I received a text message alert from an associate that manages a trucking distribution center in Fontana Ca. Diesel fuel pricing in his neck of the woods approached $3.50 PG, with regular gasoline reaching $4.00. He believe s the world's coming to an end. Yes, we’re in the middle of the summer driving season, yet much of the nation has witnessed a slight downtrend in the average pump price since July 1.
Torque News predicted less than 60 days ago that escalating fuel prices would continue; so what’s up?
Looking to the numbers, we find that an uptrend in the retail price of gasoline traces its beginning to the first quarter of 2015, specifically the month of February. In the Pacific Northwest, gasoline pump price has hovered around the $3.00 mark, with spikes approaching $3.28, or so. Our associates on the east coast report regular gasoline pricing below $3.00, with diesel #2 slightly higher.
Knee Jerk panic-trade-reaction triggers west coast fuel uptick
What’s it like to wake up Monday morning to an average $.28 per gallon fuel price uptick? I suppose that depends on what you’re driving, the length of your commute and the size of your fuel tank.
Hey, for my truck and van driving friends that rely on a heavy duty truck for work-duty, so be it, whataya gonna do? The latest round in gasoline price uptick is attributed to a “Panic” unleaded fuel options buy initiated by gasoline speculators who are betting that current reserve supplies will not meet summer driving season demand; all because gasoline imports dropped to zero last month. Personally,I’ll go with this guy’s prediction as to market stabilization.
This contract-long-buy-play is based on the depletion of a million barrel reserve. At the current rate of use, a 10 day supply for the largest automotive market in the United States.
Will higher fuel prices increase EV and gasoline hybrid demand?
Now you’re picking up on my drift. Every major automotive manufacturer is expanding fuel cell hybrid, plug in hybrid, or stand-alone electric vehicle (EV) development and subsequent sales; if not this year, no later than 2018; and the oil industry knows it!
Actually, the supply of crude oil and gasoline derivatives is secondary to the development of near zero, or zero particulate emissions as the industry approaches the C.A.R.B. mandated 2022 drop dead date for compliance in the California; the rest of the nation will follow.
Two things will happen here: Looking to the numbers, we discover an overall downtrend in consumer demand and subsequent burning of oil distillates
Note: due to the much higher average MPG of today’s vehicles, the daily (Californian processed) usage of unleaded gasoline in California is down by no less than 40% in 8 years. Producers, refiners and distributors of gasoline and diesel fuel will attempt to maximize profits (or at the least recover them) through timed retail price increases, news-driven speculative contract option trends, and as demonstrated in this latest spike, reducing reserve stockpiles during peak driving season, cold weather episodes and multiple refinery shutdowns, all in a concerted effort to buoy retail pump price.
When the proverbial smoke clears, EV and FCEV will dominate the market
Don’t cry for the oil industry, actually a very small percentage of crude is processed into fuel distillates. Asphalt, Fertilizers, medicines, plastics, clothing, that’s that short list. Big oil will survive without the internal combustion gasoline fueled engine. Electric vehicles and fuel cell generated electric vehicles will power the commercial, private and public transportation of the future. In the mean time, pull out your cash, debit or credit card.
Gasoline has been king for over 100 years
We’ll all be paying for the transition from internal combustion I.C. engines to electric powered vehicles like this one. In speaking with American Honda Motors. Kia and Toyota, the logical path to a zero emissions driving future is either a plug in electric, or hydrogen fuel cell generated electric vehicle. All players anticipate on this field anticipate an explosion in demand for this technology, and along with autonomous driving systems, believe their arrival to be much sooner than most buyers anticipate. As mandated by C.A.R.B.legislation, by the year 2030, 75% of all new cars on California roads will be electric.