If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#1
|
|||
|
|||
Is a fuel crisis coming in Europe??
In Europe the prices rises in gasoline have been modified by
the fact the euro has risen in value. Top grade gasoline in France now is running about 1.10 euros and summer is coming. Will it go to 1.20 or higher??? But is a general problem on the near horizon? The article below indicates a growing diesel problem in California, they are special one's due to the blend. However -----. Earl **** Diesel Prices Are Bringing Some Trucks to a Standstill By Elizabeth Douglass Times Staff Writer His Peterbilt cab and 48-foot refrigerated Great Dane trailer aren't hauling cheese from the Central Valley to Minnesota. The rig isn't delivering groceries across the state or taking produce to market from California fields. Telles said he and his truck are staying home in Pinole, Calif., about 25 miles northeast of San Francisco, until diesel prices fall or freight rates rise. "I won't haul," he said, "unless I can make a profit." Diesel is often an afterthought when consumers and politicians are howling over high gasoline prices. But right along with gasoline, diesel prices have exploded throughout California in recent weeks. That has pushed up costs for truckers like Telles, as well as for railroads, construction companies and farmers, among others, and threatens the state's economic recovery. For the first two months of the year, the average statewide retail price for diesel rose more than 26 cents a gallon to $1.939, a jump of more than 15%, according to figures from the Energy Information Administration, an arm of the U.S. Energy Department. On March 8, the statewide average fell about a penny, to $1.927, mirroring the slight pullback of gasoline prices. Price surges for diesel have historically been less dramatic than for gasoline in California. Experts warn that both fuel markets are destined to see more volatility in the future. "It's exactly the same situation for diesel as it is for gasoline," said Claudia Chandler, assistant executive director of the California Energy Commission. For one thing, California diesel is ‹ like the gasoline here ‹ a special blend that is cleaner, more expensive to make and unlike that used in other states. In addition, diesel production in the state comes from the same 13 refineries that produce California gasoline. The plants are working at capacity and can't make enough of either fuel to satisfy growing demand in California, Arizona and Nevada. When refinery outages hit, they are just as likely to affect diesel production as gasoline output. Companies can also opt to make less diesel to maximize gasoline output, especially if profit margins are higher for gasoline. Making a bad situation worse, a Bakersfield refinery that Shell Oil Co. plans to close Oct. 1 makes 6% of California's diesel fuel. Although Shell has said it would honor its supply contracts, the overall reduction has state officials nervous. All this points to a rough road ahead. "Almost everything you buy gets delivered by truck," said Mike Jackson, director of transportation technology at Tiax, a consulting firm in Cambridge, Mass. "So it can have a pretty big economic effect if the truckers are put in a bind, where they can't increase their prices and their costs go up." Telles, for example, said fuel was costing him 36 cents a mile, on top of other operating expenses that total 65 cents a mile. He recently turned down a freight run that would have paid him $1 a mile. Walt Unterseher, an owner-driver based in Carlsbad, Calif., passes on those kinds of jobs, too. His flatbed trailer, which gets a maximum of 6.5 miles per gallon, is parked. "You can go into any truck stop and everybody is crying about the high cost of fuel and low freight rates," Unterseher said. "There's always somebody out there thinking, 'well, I've got to run,' but you can't run for nothing forever, it's going to catch up to you." A fuel surcharge can help, if you can find a customer to pay it. Unterseher works for a company that instituted a fuel fee, but the company passes only a portion of that on to the drivers who buy the diesel. Farmers take a hit on high diesel prices too. As with many truckers, some of California's farmers operate on thin margins, and profit can turn to loss with sharp moves in commodity prices or bad weather. Bill Crivelli, who processes tomatoes and grows cotton and alfalfa hay, said he used as much as 20,000 gallons of diesel fuel a year, mostly to power his 10 tractors. "It can be a big expense," he said. When the prices jump, "it reduces the amount of profit you're going to have." In recent years, farmers who have fuel storage tanks have tried to buy diesel when prices were lower and hold it until it's time to rev up the tractors for planting or harvest. Crivelli, whose 1,100-acre farm is in the Central Valley town of Dos Palos, said he doesn't have any tanks. "I'm just at the mercy of the market." Storing fuel can help hedge against diesel price run-ups, but the strategy can backfire too, said Chandler of the state energy commission. "If there's one thing we're worried about with diesel, it's that there's this huge reserve out there of empty tanks," Chandler said. "When they pull supplies off the market, it ramps up the price, and it keeps the price up, because it creates an artificial shortage-type situation, even though there's not a supply shortage." Crivelli said farmers are beginning to till their fields less often, which lowers overhead costs, reduces time in the fields and cuts diesel consumption. "It reduces the number of trips with the tractor," he said. "That's really catching on and spreading here. The price of diesel's a big part of that." Farmers feel the pain another way too. If fuel prices get too high, it becomes difficult to find enough truck drivers to haul the crops to market, forcing farmers to compete for transport or offer higher freight fees. If diesel prices don't drop a lot soon, Telles will be one of those sought-after drivers. "It's going to be very interesting to see what happens to those produce farmers," Telles said. "I'm not hauling cheap freight and paying high diesel prices. It'll rot in the field before I roll my truck." |
#2
|
|||
|
|||
Is a fuel crisis coming in Europe??
I don't see any mention of Europe here.
-- Transpose hotmail and mxsmanic in my e-mail address to reach me directly. |
#3
|
|||
|
|||
Is a fuel crisis coming in Europe??
Following up to Earl Evleth
Walt Unterseher, an owner-driver based in Carlsbad, Calif., passes on those kinds of jobs, too. His flatbed trailer, which gets a maximum of 6.5 miles per gallon, is parked. "You can go into any truck stop and everybody is crying about the high cost of fuel and low freight rates," Unterseher said. "There's always somebody out there thinking, 'well, I've got to run,' but you can't run for nothing forever, it's going to catch up to you." So fuel is dirt cheap but the truckers still get squeezed, isn't that capitalism as US likes it? I think truckers in UK have same problem, its nothing to do with price of diesel, rather the oversupply of truckers overcompeting for work. Bush could treble the price of diesel, (fat chance) and little would change in the short term. Truckers would still be forced to work just at edge of making a profit. In the medium term it might be less economic to shift stuff around so much, so less truckers. Either way it sounds like there are too many trucks. -- Mike Reid "Art is the lie that reveals the truth" P.Picasso Walking, Wasdale, Thames path, London etc "http://www.fellwalk.co.uk" -- you can email us@ this site Spain, food and walking "http://www.fell-walker.co.uk" -- dontuse@ all, it's a spamtrap |
#4
|
|||
|
|||
Is a fuel crisis coming in Europe??
"Earl Evleth" wrote in message ... For the first two months of the year, the average statewide retail price for diesel rose more than 26 cents a gallon to $1.939, a jump of more than 15%, according to figures from the Energy Information Administration, an arm of the U.S. Energy Department. On March 8, the statewide average fell about a penny, to $1.927, mirroring the slight pullback of gasoline prices. Awww what a shame, I feel so sorry for them! Try coming to the UK. Approx US$5.34 per US Gallon here. |
#5
|
|||
|
|||
Is a fuel crisis coming in Europe??
Mark Hewitt wrote: "Earl Evleth" wrote in message ... For the first two months of the year, the average statewide retail price for diesel rose more than 26 cents a gallon to $1.939, a jump of more than 15%, according to figures from the Energy Information Administration, an arm of the U.S. Energy Department. On March 8, the statewide average fell about a penny, to $1.927, mirroring the slight pullback of gasoline prices. Awww what a shame, I feel so sorry for them! Try coming to the UK. Approx US$5.34 per US Gallon here. Historically speaking, the price of petrol here in the States is still dirt cheap. The average US price (per an article in today's paper) is now about $1.70. That is about $0.26 per gallon at 1955 prices, $0.71 per gallon in 1980, etc. (inflation adjustment per http://www.westegg.com/inflation/ ). Fuel is still *absurdly* cheap in the States, even if it goes up to more than $2.50 or more per gallon.... -- Best Greg |
#6
|
|||
|
|||
Is a fuel crisis coming in Europe??
"Gregory Morrow" wrote
| Mark Hewitt wrote: | "Earl Evleth" wrote | For the first two months of the year, the average statewide retail price | for diesel rose more than 26 cents a gallon to $1.939, | Awww what a shame, I feel so sorry for them! | Try coming to the UK. Approx US$5.34 per US Gallon here. | Fuel is still *absurdly* cheap in the States, even if it goes up to more | than $2.50 or more per gallon.... They'll just have to drive smaller cars ... or even start walking down the drive to the mailbox :-) With such a low retail price, any wiggle in the wholesale price of oil is going to have a bigger effect on retail price than it would in Europe. Also, at least in UK, fuel for transport is heavily taxed/excised, so if a higher oil price started to have an adverse effect on the economy, the government does have leeway to compensate by foregoing some of the tax. And farmers and other non-transport users get 'red' diesel which doesn't have the excise tax, for use on farm machinery. Owain |
#7
|
|||
|
|||
Is a fuel crisis coming in Europe??
"Gregory Morrow" wrote in message nk.net... Historically speaking, the price of petrol here in the States is still dirt cheap. The average US price (per an article in today's paper) is now about $1.70. That is about $0.26 per gallon at 1955 prices, $0.71 per gallon in 1980, etc. (inflation adjustment per http://www.westegg.com/inflation/ ). Fuel is still *absurdly* cheap in the States, even if it goes up to more than $2.50 or more per gallon.... How would you describe retail price in Indonesia where it is around 50 cents a gallon ? |
#8
|
|||
|
|||
Is a fuel crisis coming in Europe??
On 16/03/04 14:49, in article , "Markku
Grönroos" wrote: How would you describe retail price in Indonesia where it is around 50 cents a gallon ? A political gift to placate the people. A barrel contains about 42 gallons and if it were all gasoline that would yield at $0.50 a only about $20 for the entire barrel. But the oil can be sold for 30 dollars which means that gasoline should not be under at least $1/gallon. It currently runs about $1.09 (unleaded) on the financial markets. So it sometimes happens that gasoline is sold at less than the market price in some countries. Unfortunately it stimulates waste and unreasonable expectations. At one time, in the USSR, bread was so cheap, because it was subsidized, that it was fed to pigs since it was cheaper than other pig food sources. Earl |
#9
|
|||
|
|||
Is a fuel crisis coming in Europe??
Earl Evleth wrote: On 16/03/04 14:49, in article , "Markku Grönroos" wrote: How would you describe retail price in Indonesia where it is around 50 cents a gallon ? A political gift to placate the people. A barrel contains about 42 gallons and if it were all gasoline that would yield at $0.50 a only about $20 for the entire barrel. But the oil can be sold for 30 dollars which means that gasoline should not be under at least $1/gallon. It currently runs about $1.09 (unleaded) on the financial markets. Interesting chart US retail gas prices: http://oregonstate.edu/Dept/pol_sci/fac/sahr/gasol.htm -- Best Greg |
#10
|
|||
|
|||
Is a fuel crisis coming in Europe??
Following up to Markku Grönroos
Fuel is still *absurdly* cheap in the States, even if it goes up to more than $2.50 or more per gallon.... How would you describe retail price in Indonesia where it is around 50 cents a gallon ? how does that relate to the average wages? -- Mike Reid "Art is the lie that reveals the truth" P.Picasso Walking, Wasdale, Thames path, London etc "http://www.fellwalk.co.uk" -- you can email us@ this site Spain, food and walking "http://www.fell-walker.co.uk" -- dontuse@ all, it's a spamtrap |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
rec.travel.europe FAQ | Yves Bellefeuille | Europe | 0 | February 16th, 2004 10:03 AM |
rec.travel.europe FAQ | Yves Bellefeuille | Europe | 0 | January 16th, 2004 09:20 AM |
rec.travel.europe FAQ | Yves Bellefeuille | Europe | 0 | December 15th, 2003 09:49 AM |
rec.travel.europe FAQ | Yves Bellefeuille | Europe | 9 | November 11th, 2003 09:05 AM |
rec.travel.europe FAQ | Yves Bellefeuille | Europe | 0 | October 10th, 2003 09:44 AM |