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Posts Tagged ‘cheap gas’

Gas Prices Creeping Upward after Super Bowl

Another drop may come due to declines in regional demand.

by on Feb.02, 2015

Gas prices are on the rise after a lengthy free fall that has seen them drop to the lowest levels in more than five years.

The free fall in gasoline prices could be coming to an end after a seven-month drop in prices has consumers enjoying the lowest prices in more than six years.

Gas Buddy, a website the tracks daily changes in gasoline prices, reported that gasoline was selling for $2.051 per gallon in the wake of the Super Bowl, which was slightly higher than the $2.026 per gallon recorded only a week ago.

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AAA, however, reported last week there were indications that gasoline prices could drop again as demand as dropped in the wake of the winter storms in the Northeast. The winter weather continued over the weekend with a massive blizzard that dumped a foot of snow in a broad band stretching from Iowa into New England. (more…)

Toyota “Staying the Course” Towards 54.5 MPG CAFE Target

“Eventually,” says auto chief Carter, $4 gas “will come back.”

by on Jan.14, 2015

Toyota's Bob Carter said Americans need to be prepared for a return to $4 gas in the future.

Enjoy cheap gas while you can, says Bob Carter, the head of U.S. automotive operations for Toyota. Like all good things, it “eventually” will come to an end.

The collapse of gas prices was the talk of the North American International Auto Show during this week’s media previews, and senior industry officials universally said that this unexpected shift has both its benefits and challenges.

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Consumers have more money to spend, but they’re also asking for the sort of big, powerful vehicles that could make it difficult to meet the upcoming, 54.5-mile per gallon Corporate Average Fuel Economy, or CAFE, standards that will take effect in 2025. (more…)

Plunging Fuel Prices Could Create Problems for Ford, Says Product Chief

Maker intends to do “the right thing,” but must balance CAFE and consumer demands.

by on Dec.04, 2014

Ford's 2015 F-150 4x2 with Ford’s 2.7-liter EcoBoost engine has EPA-estimated ratings of 22 mpg Combined.

With gasoline prices plummeting below $3 a gallon in much of the country – and with further cuts expected – American motorists are shifting gears. November’s booming sales numbers were given strong momentum by the resurgent demand for fuel-hungry pickups, SUVs vans and even muscle cars.

Ironically, that’s not entirely good news for automakers like Ford Motor Co. On the positive side, sales of the new 2015 Mustang nearly doubled over last year’s volume, and Ford has a massive backlog of orders for its new F-150 pickup, the most profitable model in its portfolio.

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But plunging pump prices also create some serious challenges, cautioned Raj Nair, Ford’s global product development chief.

“Certainly, low fuel prices make it hard to sell some vehicles like hybrids and electrics,” he said during a lunch at the Ford test track near the maker’s headquarters in Dearborn, Michigan.

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Gas Prices Falling Despite International Conflicts

by on Aug.12, 2014

Gas prices are predicted to drop through the fall.

Ongoing strife in Iraq and Ukraine should be a recipe for a gas price hike in the U.S.; however, the national average retail price for a gallon of regular unleaded continues to fall: a trend that is expected to continue.

The U.S. Energy Information Administration, also known as the EIA, predicts further drops at the pump throughout the third quarter of this year as lower refinery margins offset higher crude oil prices. The agency expects regular gasoline retail prices to average $3.54 per gallon in 2014 and $3.45 per gallon gal in 2015, compared with $3.51 per gallon in 2013.

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AAA and GasBuddy.com reported this week a national average price of $3.47 for a gallon of regular unleaded, down 2 cents from this time last week and 15 cents from one month ago. The national average price for this date last year was $3.55 per gallon, according GasBuddy. (more…)

For Venezuelans, Nickel Gas May Soon be a Memory

Fuel subsidies are bankrupting oil-rich nation.

by on Dec.27, 2013

A Venezuelan motorist driving an old gas-guzzler tanks up on fuel that's cheaper than water.

For drivers in most parts of the world it might seem like a fantasy, but for those in oil-rich Venezuela, nickel gas has long been the norm – and it’s encouraged the sort of fascination with fuel-guzzling vehicles that were common in the U.S. back in the 1970s.

But struggling to deal with a worsening smog problem, as well as increasing financial woes, the Latin American nation’s new President Nicolas Maduro has been dropping strong hints that it’s time to finally boost fuel prices that have been frozen at 5 cents – and even less at black-market rates – for the last two decades.

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“As an oil nation, Venezuelans should have a special price advantage for hydrocarbons compared to the international market,” Maduro, who replaced Hugo Chavez after the Socialist icon’s death last year, said during a December 18th speech. “But it has to be an advantage, not a disadvantage. What converts it into a disadvantage is when the tip you give is more than what it cost to fill the tank.”

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