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April 8, 2006
Look out for $4 gas this summer
This from the PI this morning: Latest probable relic of the past: Cheap gas. We haven't started the summer driving season yet. Spring is typically a DOWN time for gas prices. Demand from winter heating oil is tapering off and the summer vacation season hasn't kicked in yet. But already the price of regular unleaded has jumped 41 cents since LAST MONTH in the Seattle area. Overall the West Coast is 27 cents higher than this time last year while the Gulf Cost is 43 cents higher. And we haven't even seen demand or any disruptions from huricanes or war.
Another interesting tidbit from the story, the breakdown of costs. 60 percent of a gallon is the cost of crude, 20% taxes, rest refinery and marketing which is fairly costant. But checking the profits of the refiner and marketer, they are following the percentage up even though their costs haven't changed. Expect another record profit summer for the oil companies.
I also expect more than 6 weeks this summer for biodiesel to be CHEAPER than diesel. Go buy a diesel NOW while still can.
Posted by Martin at April 8, 2006 9:19 AM
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