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Despite drop, Utah has 5th highest gas prices
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Bright Side | 1:10 p.m. Oct. 15, 2008
At least they're dropping. I'm not complaining that I have to pay
$3.20/gallon cause it was only a few months ago when I had to pay $4.20/gallon.
I drive a LOT for work - usually between 500 and 1000 miles a week - and
I'll take the savings wherever I can get it!!
John | 1:37 p.m. Oct. 15, 2008
What some of you are saying is frankly astonishing. Prices are determined by the
point where supply and demand meet; if supply decreases and demand stays the
same, prices rise. When prices rise, demand decreases to match the available
supply, thus lowering prices to the point where they were before supply
decreased. The price is the same, but both supply and demand are lower in real
numbers. Relative to one another they remain constant.
This is not always the case with goods most important to our lifestyles. In these cases, something happens called price inelasticity of demand, meaning that when there is a change in price, caused by a decrease or increase in supply, the change in demand is less than the change in price. For example, if gas prices rapidly increase and only some people stop buying as much gas as before, demand for gas is relatively inelastic. In other words, people value it so much that they will continue to buy even when it's pricey. This is what is happening in Utah. We haven't adjusted our demand to available supply, but it'll happen sooner or later. This is not my opinion folks; this is econ 101.
This is not always the case with goods most important to our lifestyles. In these cases, something happens called price inelasticity of demand, meaning that when there is a change in price, caused by a decrease or increase in supply, the change in demand is less than the change in price. For example, if gas prices rapidly increase and only some people stop buying as much gas as before, demand for gas is relatively inelastic. In other words, people value it so much that they will continue to buy even when it's pricey. This is what is happening in Utah. We haven't adjusted our demand to available supply, but it'll happen sooner or later. This is not my opinion folks; this is econ 101.
Comments continue below
TucsonGuy | 3:19 p.m. Oct. 15, 2008
Cost is about $2.99 to 3.05 per gallon (87 Octane) here in Tucson, and it keeps
on going down.
HSFAN | 4:33 p.m. Oct. 15, 2008
To JOHN: Thanks for the lesson in Econ 101....question?
If a gallon of gas cost $2.45 per gallon when a barrel sales for $90 in 2007...why is it when a barrel costs $90 in 2008 a gallon costs $3.45 at a station on Foothill Drive in SLC? (according to saltlakegasprices.com)
If a gallon of gas cost $2.45 per gallon when a barrel sales for $90 in 2007...why is it when a barrel costs $90 in 2008 a gallon costs $3.45 at a station on Foothill Drive in SLC? (according to saltlakegasprices.com)
RR | 5:35 p.m. Oct. 15, 2008
$2.68 in MN.
4th in nation | 6:02 p.m. Oct. 15, 2008
Once again the media misinforms us.
John | 6:21 p.m. Oct. 15, 2008
HSFAN: my guess would be that demand is staying high, even as prices drop which
slows the descent of prices. We're not going to buy lots of gas at $3.80 a
gallon, but we will buy it at $3.45. This doesn't necessarily hold true
for all locations, even within the same geographical area. Gas is probably
about $.30 cheaper on the west side of town, which would indicate to me that the
less affluent the area, the more people are adjusting their consumption of gas
and the prices reflect that.
Also remember that artificially decreasing the price of gas, as many of you are suggesting we do, will spike demand, which causes shortages. You think the gas situation is bad now, just wait until you can't get any of it because someone made a law prohibiting anyone from charging above a certain amount for a gallon of gas. The supply/demand pricing system is self-regulating and prevents shortages like we had during the Carter years when a price ceiling was imposed. I don't know about the rest of you, but I don't want to queue up to get a tank of gas at 5 am.
Also remember that artificially decreasing the price of gas, as many of you are suggesting we do, will spike demand, which causes shortages. You think the gas situation is bad now, just wait until you can't get any of it because someone made a law prohibiting anyone from charging above a certain amount for a gallon of gas. The supply/demand pricing system is self-regulating and prevents shortages like we had during the Carter years when a price ceiling was imposed. I don't know about the rest of you, but I don't want to queue up to get a tank of gas at 5 am.
jls | 6:33 p.m. Oct. 15, 2008
We pay dearly to live in Utah. The state is crying about lost revenue. Lower the
price of gas to 2.45 like other states and areas and state revenues will come
back up because consumption will increase. Utah needs to get in the business of
generating revenue from our natural resources instead of taxes.
Abner Normal | 7:27 p.m. Oct. 15, 2008
Now there's a shock.
Texan | 7:54 p.m. Oct. 15, 2008
$2.78 this morning in Texas...
San Diego | 9:30 p.m. Oct. 15, 2008
California has three different taxes that we pay at the pump and I still paid
3.33 this morning. Greed is definately playing a part with the Gas situation in
Utah.
To John: | 12:14 a.m. Oct. 16, 2008
You are working for Big oil and are using the same Talking points to justify
high gas prices! Supply and demand is a bunch of you know what!! In the USA
Today, They say demand for gas in the US has gone down 3% since 2001 yet oil
prices are up 458% during that same time. Sounds like econ 101 to me!
Speculators on Wall St. is what drove up prices and now they are running for the
exits. Wow, demand must have decresed 40% since July!! Oil is back below $75
show-me-state | 5:35 a.m. Oct. 16, 2008
Today, October 16, 2008, gas is $2.419 in Kansas City, MO and our closest
refineries are in Oklahoma, over 250 miles away. Just think how low it would be
if we had several refineries in the our county or the county north of us.
John | 11:47 a.m. Oct. 16, 2008
To To John: Are you serious?!?! I am three months off of my bachelor's
degree in political science with minors in philosophy and economics. I am in
the process of preparing to go to law school and am in no way "working for
Big oil", either figuratively or literally. I wish gas prices would drop
through the floor, but they won't because of people who refuse to adjust
their fuel consumption to the situation we are faced with.
Re. supply and demand being hooey: what about worldwide demand, friend? That also drives market prices. Contrary to what you may think, the US is not the only country in the world to consume petroleum. As US demand goes down, worldwide demand goes up because suddenly there is a cheap and plentiful form of energy available to them at cheaper prices. There are nascent car cultures on the rise in China and India, my poor, misinformed friend, but that wouldn't mean the first thing to you, would it? You want to blame something you don't understand (oil futures markets/"speculators") and something easy and obvious to malign ("Big oil") in order to take the responsibility off of your own habits.
Re. supply and demand being hooey: what about worldwide demand, friend? That also drives market prices. Contrary to what you may think, the US is not the only country in the world to consume petroleum. As US demand goes down, worldwide demand goes up because suddenly there is a cheap and plentiful form of energy available to them at cheaper prices. There are nascent car cultures on the rise in China and India, my poor, misinformed friend, but that wouldn't mean the first thing to you, would it? You want to blame something you don't understand (oil futures markets/"speculators") and something easy and obvious to malign ("Big oil") in order to take the responsibility off of your own habits.
John | 1:48 p.m. Oct. 16, 2008
Some other points for interested parties: there are the matters of inflation and
the dollar losing clout relative to other currencies since 2001, which also
contributes to higher prices on all kinds of imports, oil included.
What it all comes down to - and I can't say this enough - is that if people want to see gas prices come down significantly, they need to stop driving their cars so much or drive more fuel-efficient cars. Apropos San Diego at 9:30: we in America act as though we are entitled to all the cheap gas we can get our hands on. One might even say we were greedy about it, and now that there are emerging markets in which oil is being bought and sold (China, India and other maturing economies) we scream and cry and stamp our feet, demanding that someone save us from the mean oil companies. Stop driving the SUV's and trucks with V8/V10 engines unless it is absolutely necessary. Act like you want something other than being existentially dependent on the oil companies that you despise. Save yourselves and change your habits. The change in prices will astound you and your lives will see improvement.
What it all comes down to - and I can't say this enough - is that if people want to see gas prices come down significantly, they need to stop driving their cars so much or drive more fuel-efficient cars. Apropos San Diego at 9:30: we in America act as though we are entitled to all the cheap gas we can get our hands on. One might even say we were greedy about it, and now that there are emerging markets in which oil is being bought and sold (China, India and other maturing economies) we scream and cry and stamp our feet, demanding that someone save us from the mean oil companies. Stop driving the SUV's and trucks with V8/V10 engines unless it is absolutely necessary. Act like you want something other than being existentially dependent on the oil companies that you despise. Save yourselves and change your habits. The change in prices will astound you and your lives will see improvement.
34 mpg | 5:26 p.m. Oct. 16, 2008
The oil companies realized that they only have until the election to get
whatever the can for oil. They just did not expect oil to reach $70 per barrel.
In Utah I believe the prices are staying artificially high to help push through
the drilling of Oil Shale. There are no natural reasons at this point. There
must be collusion.
Sick of it!! | 10:24 a.m. Oct. 17, 2008
Everyone is missing something here. The media and the Utah goverment never
mention the fact that Utah is comparing their average gas at "85
Octane" to everyone elses 87 Octane, if you want to compare apples and
apples look at Utahs 87 Octane which is .10 higher yet and we are now higher
than everyone except Ak and HI. This is collusion and price gouging, but
nothing will ever be done because Utahns are afraid of the establishment here.
Always has been that way, always will.
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