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Automotive News & Views How does gas at $4 and higher impact you?
2175 messages, Last post on Nov 05, 2009 at 3:05 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: snakeweasel (Jan 03, 2009 9:18 am)
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Replying to: oldfarmer50 (Jan 06, 2009 9:21 am) 
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Replying to: nippononly (Jan 06, 2009 4:25 pm) "In case anyone needed one, it is a little reminder of how volatile oil and gas prices are and will continue to be, in case someone thought $2 gas was "back to stay". " Not me NO, I know it doth love it's extremes. But now that the paradigm is broken it reacts only to extreme political turmoil and very cold weather.And even then only temporarily. Did I mention it's going to be an exceptionally cold winter ( yet again) ? Whether we put in the low last week or there's another retest coming in the first quarter remains to be seen but , the economic news should damper any attempts by Opec until later in the year when demand starts to pick up. Meanwhile credit card delinquencies and trouble in commercial real estate should keep deflationary pressure up. |
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Replying to: berri (Jan 06, 2009 11:09 am)
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Replying to: euphonium (Jan 07, 2009 12:13 pm) So true. I would guess that the bulk of road wear and tear is caused by heavy trucks. It would seem logical then to make them pay higher road and gas taxes right? Maybe not. Businesses don't PAY taxes they simply PASS THEM ALONG. If you tax truckers more for road use they either charge you, the consumer, more for shipping or they go broke. This raises the price for everything delivered by truck. So you end up paying the tax. We little guys always pay. |
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Replying to: nippononly (Jan 06, 2009 4:25 pm)
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They may be jumping out the windows. Oil dropped almost 6 bucks today despite the efforts of the international terrorist and speculators to bring back "the good old days". Wholesale gas dropped 11 cents. Don't you feel sorry for these guys? 
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Replying to: oldfarmer50 (Jan 07, 2009 12:58 pm) Well fed tax on diesel is something like 6 cents a gallon more than gas. Add to that that semis get relatively poor mileage (like 6-8 MPG) they tend to pay more in taxes. In reality on a per mile basis a semi will pay at least 6 times what a car pays. Businesses don't PAY taxes they simply PASS THEM ALONG. If you tax truckers more for road use they either charge you, the consumer, more for shipping or they go broke. This raises the price for everything delivered by truck. So you end up paying the tax. Not true. Without going into a long economics lecture complete with graphs and formulas I will say that business's pass along part of the tax, but not all of it. It all depends on the economies involved with the particular good. But in almost all cases business's do pay part of the tax. There have been instances where business's have paid all the tax. |
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Replying to: oldfarmer50 (Jan 07, 2009 2:24 pm) So you don't think that speculators can make money when prices are falling? Believe me - they can. It matters not whether prices are going up or down, so long as they are moving. Speculation is nothing more than an informed bet on price movements. The key word here is "movement". The actual direction is irrelevant. What a speculator hates above all else are stagnant prices. If, for example, oil prices stabilized at, say, $60/barrel & stayed there for 6 months, you'd hear real screams of pain. Something like that happened to currency markets in the mid 90s. For a couple of years, there was no discernible trend in prices. Imagine the plight of a sailor on a hot, windless day. That's how it was for currency traders. Some of them left the business. If oil drops to $10/barrel next week, at least some speculators will get very, very rich. |
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Replying to: snakeweasel (Jan 07, 2009 3:36 pm) Very true, except for shipping and transportation. Trucking will charge based on fuel charges as a prime concern. Raise fuel taxes and that price becomes a direct cost to the vendor or the customer. If the manufacturer or the end customer wants to cover part of the price based on gross sales they can but it takes only a few weeks for grocery products to go up because of increased fuel prices. But just like gas stations it seems to take longer for the prices to come down. But that could be because the manufacturer or end vendor decide to cover the increased cost for a short time and re-coop after the adjustment. |
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