Photo of the Day
May 21, 2008 | 10:25
am
Kristin took this photo in Death Valley recently. Because it's Death Valley, it doesn't really count, but it does set a new upper limit for prices. For now. Send your gas station photos to the Pain at the Pump gallery at Your Scene at LATimes.com. The current record high for metro L.A. is $4.29 a gallon.
There is rampant speculation in commodities right now especially oil. The Times had an article about how Congress may step in to curb speculation but how? It's the free market and investors/speculators have a right to bid prices up. Looks like these are the same people who bid up NASDAQ and housing and now have moved on to commodities.
I've been saying for weeks that this is the new bubble and it has a way to go until some new investment opportunity comes up. My natural resources mutual fund is up 50% in two months so you won't see me complaining.
Posted by: GDC | May 21, 2008 at 10:59 AM
I saw on the news the other night that gas is around 35 cents a gallon (converted to US dollars) in Saudi Arabia.
If the US was energy independent, this would never have happened. Maybe it's 35 years too late to kvetch about bad policy after the proverbial barn door has been left open, but we nonetheless need a new direction. Drilling more oil to fill up Hummers and other gas hogs is not the solution. That's only enriching totalitarian states and exporting our prosperity.
Posted by: Jack | May 21, 2008 at 11:05 AM
I've actually bought gas at that gas station. Talk about captive consumer, pay this much for gas or die in the desert.
Posted by: puckhead | May 21, 2008 at 12:38 PM
if puckhead is really right that sign should say 15.99 &9/10 a gallon
isn't it about time we discard the 9/10 thing anyway.
Posted by: mike | May 21, 2008 at 12:53 PM
Peter, you said: "...Because it's Death Valley, it doesn't really count, but it does set a new upper limit for prices..."
You are wrong here. The prices on that sign represent the LOWER limit for prices.
So many here on your blog were wondering to find what is the next bubble the FED is inflating/creating. Well look no more, GAS/OIL BUBBLE.
Look at the price of oil barrel before FED started to cut interest rates around September 2007.
http://www.wtrg.com/daily/clfclose.gif
The FED slashing rates created and added to the mess we see now. The FED better start the real fight here - inflation and start increasing interest rates substantially. I can see FED rates higher then 6% in the near future.
Posted by: Laker | May 21, 2008 at 03:24 PM
I also heard that many gas stations across the nation can't sell at higher than $3.99 since the gas pumps are not capable of displaying higher than 3 on the dollars. I think these are mainly old mechanical reading but heard that they all now are selling HALF a gallon and marketing it that way. So they sell HALF gallon for $2.00 or whatever, that will give them life till gas goes to $8.00.
Also, if you think about it, i think it is a good time to revert to the European - metric standard and readjust the pumps to sell litters. That way one litter will cost about $1.00 basically like a gallon cost back in 2001. We could then use the pumps till gas is $16 a gallon....GREAT!
Posted by: Laker | May 21, 2008 at 04:16 PM
Pretty soon, we won't even be able to afford the cost of gas to drive to the gas station.
Imagine an old lady hauling her SUV on her back to the gas station in order to save enough money to stay in her Senate bailout-ed house.
I guess this is why people say, 'the best laid schemes o' mice an' men gang aft a-gley.' Thanks to the bubble-holic Fed, there is a never ending parade of bubbles.
Posted by: MyLessThanPrimeBeef | May 21, 2008 at 08:49 PM
Yeah. Been to Death Valley. Bought gas there. Filled it up as a matter of fact....because I'd just crossed Death and the Panamint on a quarter tank.
Try that in your SUV.
Posted by: xtine | May 21, 2008 at 09:28 PM
Broken record time here but driving home tonight was almost rear ended over a dozen times trying vainly to do 55 in the right lane.
Might have been the wind, saw a gnarly multi car up the 5 that the CHP was just starting to unravel.
Judging by the wafer-thin margin left by those swerving around me, there's a lot 'o rage out there.
Reminds me of animal cruelty from days of yore: dog w/a tin can on its tail. No matter how fast it runs....
Gas is still too cheap.
Posted by: mbob | May 21, 2008 at 10:44 PM
A little message for LA drivers: stop whining! I filled my car (07 Ford Focus) last night for $Cdn 1.26 per litre: that's $US 4.54 per US gallon. Your max price of $4.29 per gallon converts to $1.165 Cdn/litre. If you used real (Imperial) gallons instead of your puny 4/5 size ones, you'd be paying $US 5.79 a gallon. And prices tend to be a little lower in Toronto than in other parts of the country...
Posted by: Doug i nToronto | May 22, 2008 at 09:03 AM
I can't wait for prices to hit $10-$15/gallon. Then you will really be able to watch them squirm. The Saw Dust royal family deserves these prices to build more palaces.
Posted by: Jonathan | May 22, 2008 at 09:13 AM
Horse feathers (or A day at the races):
87 octane at the Union 76 station
Pico and Barrington has been posted
at $4.39 point 9 for some time now.
That's a death valley of a knight at the opera.
Posted by: yours truly, Johnny Dollar | May 22, 2008 at 11:42 AM
That's nothing - check out this May 22, 2008 photo of gas prices from an Esso station (major European retail outlet) in Düsseldorf (which lies in the center of Germany's industrial zone, which has over 12 million residents) - http://www.tagesspiegel.de/storage/pic/fotos/wirtschaft/
212670_1_080517_Benzinpreise_dpa.jpg
That's € 1.66 / liter for premium gas. Converting for premium gas: € 1.66 / liter * US$ 1.57 / € 1.0 * 3.79 liters / gallon = US $9.88 / gallon!
That's almost twice what we are paying (Death Valley aside) - but those prices will come here before too long.
Posted by: Sage | May 23, 2008 at 02:22 AM