Gas Prices

Seen at CTNewsJunkie:

Gov. M. Jodi Rell today asked legislative leaders to expand the legislature’s special session next week to allow for a vote on postponing the July 1 increase in one of the state’s two gasoline taxes. [...]

Earlier this week Rell said in order to postpone the half percent increase in the gasoline gross receipts tax the legislature would have to help her find $25 million in spending cuts to make up for the lost revenue, a suggestion that has one former Democratic state legislator crying foul.[...]

“Even if gas prices don’t increase at all from this point forward—the most basic simplistic assessment reveals that in FY 09, the General Fund will not receive the $311 million (that was projected last June) but will actually receive well over $410 million,” Pelto said in an emailed statement titled, “Reality Check on Gas Tax Issue.”

Although my inner conservationist was looking forward to Nutmeggers being further encouraged to conserve from the incremental increase in gas prices, I do have to admit that I get a depressing pang in my stomach every time I drive by a gas price sign.  Not accelerating the increase in those numbers would be nice.

I am, however, truly disappointed that our state legislature seems disinclined to take the opportunity to have a revenue cut be an excuse for cutting other costs.  After all, our state government agencies are, by and large, horribly inefficient.  If we aren’t going to get a bang for our tax bucks, why not fund them according to the quality of service they currently provide?

Besides, the CTNJ article also points out that the state is expected to run at a deficit next fiscal year, in which case reducing spending in the face of reduced revenues is the sort of good sense you’d expect an elected leader to exhibit.

I’ve commented previously about a lack of boating sounds coming from a nearby reservoir, as an ominous sign of just how expensive gas has become.  (And, FWIW, I did hear a little bit of boat noise…for a little while…on Sunday and Monday.)

It seems that the price of marine fuel has become worthy of an article in Sunday’s Courant:

But there’s a major cost issue during this year of ascending gasoline prices and growing concern about global oil supplies. Marine gas generally sells at 50 to 75 cents a gallon over auto fuel, and last week, as the Memorial Day weekend approached, fuel was already selling at $4.66 a gallon on the East Lyme docks. By the height of the power boating season in July, the Pratts and their marina friends expect to pay $5 or more a gallon for fuel.

Nobody’s pretending that 33-footers like the Wenweken III — there are dozens of them along the neighboring slips — are anything but gas-aholics. The Pratts’ boat, powered by twin, 250-horsepower Yamaha outboards, burns 30 gallons an hour — and that’s just, as Ken says, “loafing along at 30 mph.” Their fuel tab this summer will come to $150 an hour, but the Pratts have few worries about running low. The Wenweken III’s tanks can hold 350 gallons.

“We’re looking this summer at our first $1,700 fill-up, but you have to remember that it’s just as much fun sitting here at the marina enjoying the boat and our friends,” said Wendy Pratt. “When I saw these fuel prices beginning to climb this spring, I said to Ken, ‘Honey, no more running over to Greenport for lunch, OK?’ We’ll just use our plastic spatula [credit card] for takeout food right here on the dock.”

Ugh; a $1700 tank of gas?

Meanwhile, just to add to that happy news — when I went out last night to get enough gas to tide me over until my next trip to the cheap gas stations on the Berlin Turnpike, I happened to notice the neighborhood price for diesel was up to $4.899/gallon.

The high price of diesel troubles me, since so many homes around here are heated by oil.  Maybe it’s time to get over my pyrophobia, and start getting the fireplace ready for next winter.

Friday, I was very disturbed to encounter gas at a neighborhood station priced at $4.259/gallon.  It was only a couple of weeks ago that we were bracing for $4/gallon, after all.

However, today on a border-hunting mailing list, a link was posted to a photo gallery of one member’s recent trip to Baarle.  Included in the gallery is this picture:

Seeing gas priced at 1.513 is refreshing (other than that anomalous 3/10ths of a cent)…until you consider that price is stated as Euros per liter.

Doing the conversions…folks, that there is some $9/gallon gas.

Maybe my local $4.259 doesn’t seem quite as painful now.

This article at Bloomberg caught my eye:

China is pushing the price of diesel fuel higher by stockpiling it ahead of both the Summer Olympics and the need to rebuild Sichuan province after last week’s earthquake, the Wall Street Journal reported.

The country is hoarding the fuel in the event that its power grid fails and it needs to use backup generators, the Journal said.

Now, I don’t think anyone could fault a country for stepping up fuel acquisition in the wake of a disaster.  However, the article makes it sound like Chinese authorities are uncertain of their power grid’s ability to support the demands that the Olympics will make on local power resources.

Shouldn’t availability of power, preferably without need of falling back to more-polluting, backup sources, be a key criterion in site selection?

Also, aren’t the Olympics supposed to be a celebration of peaceful competition and cooperation, rather than a drag on the rest of the world?

Other nearby gas stations were $4.019, $4.059, $4.059, and $4.119 this evening.    I figured I’d fill up while I could still appreciate (barely) sub-$4 gas.

Seen in the Courant:

The new policy was implemented after Gov. M. Jodi Rell’s ordered state agencies to reduce gasoline consumption by about 10 percent before June 30. She wants a 25 percent reduction during the next fiscal year, which begins July 1.

The state Department of Public Safety says it goes through about 2.7 million gallons of gas each year, most of it in vehicles used by Connecticut’s more than 1,200 troopers.

The story focuses on the cuts coming from restricting troopers’ off-duty fueling privileges.  However, the need to reduce police fuel consumption by 25% immediately calls an image to mind:

Anyone else want to see Ponch and John patrolling the Berlin Turnpike?  :)   Surely a motorcycle is more fuel efficient than a trooper cruiser.

Connecticut is number one…and I’m not sure we should be happy about that.

Seen at Daily Fuel Economy Tip:

For the first time in history, America has a state with an average gasoline price above $4 per gallon. To the surprise of many, the first state to $4 wasn’t California, or even another West Coast state - instead, the dubious honor of being the first state with $4 gas goes to Connecticut.

According to state-wide figures posted on GasBuddy.com, Connecticut first crossed the $4.00 threshold shortly before noon this morning. Since then, the price has fallen back to $3.99 a gallon. For basis of comparison, Wyoming currently has the nation’s lowest state-wide average price at $3.48 per gallon.

And CT hit the $4 mark first even without the benefit of the half-percent gas tax hike which takes effect in just under two months.

I live just up the hill from a local reservoir.

In past years on weekend days with at least decent weather, the sound of buzzing outboard motors can be heard wafting up from the reservoir.

However, this year…well it’s blissfully quiet outside.

The reservoir’s open — I’ve seen folks driving to and from the boat launch with canoes and kayaks — but no powerboat sounds can be heard.

Presumably that would somehow be related to the almost-$4/gallon gas prices we’re seeing…which also happens to be the cause of some bad moods among a few boat/yacht dealers I know.

Seen in the Houston Chronicle:

If you think oil and gasoline prices are high now, they may seem cheap before long, according to CIBC World Markets Chief Economist Jeff Rubin.

Rubin, who predicted three years ago that oil would reach $100 a barrel, thinks it will climb to $225 a barrel in four years. Gasoline could be around $10 a gallon by that time, he says.

It’s all about tight supplies and rising demand. Rubin points out that almost all the growth in global petroleum liquids production since 2005 has been in natural gas liquids. Those, he says, are not a useful substitute for oil and can’t be economically turned into gasoline, diesel or jet fuel.

Like that won’t aggravate the portion of the oil price mess caused by speculators paying the contango game.

At some point, a cooling global economy and changes in behaviors should ease real demand (as opposed to speculator-driven demand), right?

Friday morning, I had the disturbing experience of watching gas prices rise as I watched. As I went to fill up my tank in the morning, the three closest gas stations were selling regular unleaded for $3.539, $3.639, and $3.659 per gallon. However, while I was pumping at the $3.539 station, I got to see the price on the sign change…and sure enough, the next person at my pump would be paying $3.659/gallon. The evening before, I saw one station in West Hartford selling premium unleaded for $3.999.

Last weekend, the New York Times ran an article mentioning that New Jersey’s gas prices were then under $3/gallon, and attempting an explanation why:

In a nation where some states could see the price of gas eclipse $4 a gallon this summer, New Jersey’s prices are often among the lowest in the nation, according to AAA, the automobile club, a fact that might surprise many from outside this region. In New Jersey — far from the oil fields of Texas or Alaska but where people love their cars and motorists buy 11 million gallons of gas daily — many stations still sell unleaded gasoline for a price that begins with a 2, not a 3.

The prices are lower here for a variety of reasons, one being that many of the state’s 4,000 stations are independently owned and drive up competition, which drops prices. Another is that New Jersey is flush with refineries and gasoline infrastructure like fuel pipelines and deep harbors to import petroleum from around the world.

But probably the biggest reason is that New Jersey has the nation’s third-lowest gasoline tax, at 14.5 cents a gallon, and it hasn’t gone up in almost two decades.

I’m not sure that I’d put the tax rate as the “biggest reason” for the lower prices…but I do have to admit that it’s tough continuing to believe that maintaining gas tax rates to help incent conservation when considering how expensive gas is, and how many doctors appointments my wife has with doctors who are 30-50 miles away…..