CagerTools

Here is the article:

https://wildcat.arizona.edu/papers/98/211/01_3.html

Its so sad to me. These people are complaining about gas prices. Oh no, you have NO other option than to take your car?? HELLO what about a bike??

I think many people just don't think of alternative ways to get around. I really hope gas prices go back up.

By the way, since I started commuting to work, I use my car probably once a week, to go to a soccer practice. I wish more people would just bike.

DataJunkie

Let 'em complain. I'm too busy pedaling.

People have their comfort zones. Getting them out of said zone is what takes some doing. Maybe if prices hit $5 a gallon........

I'm still puzzled why people still purchase gas guzzlers. Us Americans love our cars.
Anyways, my car threatens my livelihood. I would rather spend that money on my family and/or cycling gear. 1 car is what my family needs. 1 car is what we have.

My sister in-law and her family are living with us for the time being. What I do not get is they complain about filling up their car. Yet, they keep offering to pick me up from work when I ride. It's a nice offer but common! Do I really have to keep telling them that I like biking and do it by choice (not because I have to)?
argh!

SaskCyclist

I am with you. The hour per day I bike is the portion of the day I feel like I have a secret that only a select few know about. Cycling to work, and anywhere else I can, has changed my life.

caloso

Funny. When I was an undergrad, I had a car but I hardly ever drove it. Parking in Berkeley is such a nightmare that once you've found a spot, you move your car only as an absolute last resort.

Tree Trunk

Since my wife and kids get around using the family van, I don't hope gas prices rise. However, I don't understand why people don't use their bikes more, either. Like DataJunkie, my family has one vehicle. I survive just fine using my bike for most tasks. It's nice to have the minivan as a change of pace, though. When I drive I feel strange behind the wheel.

noisebeam

https://www.azcentral.com/news/articl...sprices01.html

State's gasoline retailers cash in
Stations pocketing year's biggest profits

Ken Alltucker
The Arizona Republic
Nov. 1, 2005 12:00 AM

Arizona gasoline retailers are taking in their largest profits of the year, with station owners collecting nearly 35 cents for every gallon sold.

The gross profit margin, which is about three times the retailers' typical profit of 12.5 cents per gallon in the region, reflects the current wide spread between what retailers are paying for gasoline from their wholesale sources and what they are charging their customers.

Station owners in the Phoenix-Mesa area last week took an average profit of 33 cents per gallon, according to figures provided by AAA Arizona.

"Nobody wants to be the first guy to start lowering prices if they don't have to," said AAA spokesman David Cowley, who tracks Valley gasoline prices. "The comedown is when they make their money."

As wholesale prices drop, station owners tend to pass along those savings to motorists at a snail's pace.

Industry representatives maintain that there is nothing sinister about collecting the larger profits. Gasoline retailers, particularly independently owned stations not affiliated with major oil companies, depend on the spread between wholesale and retail prices to make money.

The average Phoenix-area price of $2.66 per gallon on Monday represented a 15 percent drop from an all-time high of $3.14 per gallon on Sept. 7.

Here and across the nation, stations affiliated with big oil companies as well as independent retailers are enjoying the retail price drops because wholesale prices have dropped much quicker.

Statistics provided by the Energy Department show wholesale gasoline prices in Los Angeles have plummeted 25 percent since the end of September. Cowley said Arizona gas retailers last week paid an average pretax price of $2.03 per gallon at the Phoenix tank farm.

Ironically, station owners were making slimmer profits while enduring harsh criticism in the days after the Gulf Coast hurricanes disrupted the nation's energy supplies and sent prices hurtling beyond $3 per gallon in early September.

At the time, industry representatives were called to testify before Arizona lawmakers, and others were ordered to hand over detailed pricing information as part of a gas-price investigation pressed by Attorney General Terry Goddard.

But talk of price gouging has simmered as retail prices have dropped sharply.

Industry representatives view the situation differently.

"At any given time during the month, a retailer may be losing money or making money," said Arizona Petroleum Marketers Association Executive Director Andrea Martincic, whose group includes 150 members who own and operate 480 service stations and provide fuel for an additional 400 stations. "You have to balance it out over time."

Cowley said many station owners likely were making little to no profit in the week after Hurricane Katrina hammered Gulf Coast refineries.

Station owners say they need to pass along the price at a slower pace in order to recoup profits lost earlier in the year.

Despite the hefty margins that retailers have enjoyed in recent weeks, the industry this year has yet to reach the profit level of past years. Cowley said that the typical Arizona station so far this year has collected an average profit of 11.66 cents per gallon of gasoline. That is slightly below the average of 12.5 cents over the past three years, according to AAA.

New Jersey-based Oil Price Information Service provides area gasoline price data to AAA based on daily surveys of about 600 Valley retailers.

Looking at the bigger picture, gasoline retailers get a small part of the overall price charged. Oil companies that produce and refine crude oil into gasoline usually collect 3 out of every 4 cents spent for a gallon of gasoline.

As reflected by corporate earnings released a week ago, oil companies such as Exxon Mobil Corp., Royal Dutch Shell, BP, Chevron and ConocoPhillips are reaping tens of billions of dollars in profits. Exxon Mobil Corp. alone took in a third-quarter profit of $9.9 billion, its most profitable quarter ever.

Other elements that make up the cost of gasoline include Arizona's 18-cent tax per gallon plus profits for retailers, distributors and pipeline operators.

Cowley said the high profit levels mean that motorists should see falling gasoline prices in the weeks ahead.

"At some point, prices have to continue to come down," Cowley said. "This is the best they've (retailers) seen it in awhile."

Reach the reporter at ken.alltucker

DataJunkie

I concur since my family is in the same situation. However, I have this feeling that someday in the future we will be faced with these gas prices as world demand increases.

jnbacon

In the UA article, they mention that demand for gas has dropped 1.5%. That's huge! For something like gas, where people's behavior is very unresponsive to price (If I drive, I've gotta have gas no matter what the price), a drop in demand like that means a very large change in behavior. Some people are biking, some are taking the bus, some are just driving less. So they be complaining, but they're also doing things differently. And I heard this morning that though prices have come down, they are still up significantly from last year at this time, so demand may stay down.

Patriot

There are ignorant people everywhere you go.

atbman

Consider China and India combined population 2.5bn maybe more

Consider their fast growing economies

Consider motor vehicle purchase consequences of fast grow..

Consider fuel price consequences of increased demand for fuel by increase purchases of....

Eee, when I were a lad you could buy a gallon of gas for only $10 (recording in Library of Congress circa 2035)

But that was when Alabama was still above sea level

kb0tnv

Here is my comment I sent to their paper:

Regarding your recent "high gas prices" article. There already is an alternative to the high gas prices. It is the bicycle. Clean, efficient, runs on your morning breakfast more than twice as fast as walking. There have been more bicycles sold in the past year than cars. The humble bicycle is making a come back and not just because of Lance. Here in St. Louis I can use the bicycle and public transportation and get to work in about an hour. This is a half an hour more than normal but I get in my excercise, don't have to take off work for sick days, auto repair days, stuck in traffic days etc... I am more productive and less stressed than all my fellow coworkers. Plus I don't waste my companies time with complaining about gas prices. I wish you or someone with your paper would look into those who are already using bicycles to meet their transportation needs.

Sincerely,

Jeff Jackson
Bicycle Commuter - St. Louis MO (US Bank)
Board Member - St. Louis Regional Bicycle Federation.

Keep Cycling,

Scott176

I've started commuting to work and haven't used my car at all for about a month. I'm thoroughly enjoying it, get much more exercise, and saving money to boot. I estimate i'm saving $25 week net - that's assuming i don't upgrade my car; if i did the savings would be far more as you'd have to factor in capital, interest, and increased insurance costs. I got my yearly car registration invoice the other day - it's over $500/yr now - it really sticks in the teeth to have to pay that when i hardly use the car now.

palmertires

It's too bad the pre-business major who made her friends drive doesn't understand the effect of supply and demand on the price.

When I was in college I didn't have a car, mostly financial reasons. Still don't (still, mostly financial reasons). But, I was (and still am) amazed at how students who claim to be having a tough time financially can afford the bottomless pit they put their money into when they own a car. Especially if the university is in an urban area!

icithecat

Our family car has gone 69,000 miles in the last 13 years. It is now 25 years old and still working.
Anybody got a figure on how much we have saved vs the average.
What does the average person spend on buying and operating a car per year. Our car cost $2,700 12 years ago.

landesb

Cager did you see the article last Thursday in the Wildcat where the columnist tried to rationalize her way out of bike commuting?

Chris L

Seconded.

Seriously, why do we worry about things like this? The same old whining about fuel prices has been around for 20 years (and probably longer than that). We were having the same people calling for government action and all sorts of futile initiatives like "gas out" days back in the last "crisis" in 2000 (when, after inflation adjustments, prices were actually higher than they are now). I just kept on pedalling then and I'll continue to do so now.

Remember, these are the same people who complain about traffic but continue to sit in gridlock everyday.

DataJunkie

True true.
Plus, many people enjoy complaining. Others simply enjoy being miserable.
Personally, my main reason for commuting is the exercise (loosing the gut and man boobs ). Anyhow, the savings on gas, car maint, car loan, registration, insurance, etc are all nice side benefits.
A new benefit may end up being a reduce in doctor visits and less sicknesses. Too bad it will not do anything to my medical insurance rates.

What I am more concerned about is the rise in natural gas prices in relations to heating my home this winter.