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Where/when gas could be cheapest in 2016


youngfulltimers

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Don't forget that all that kinda changes as

 

Congress is now allowing oil to be exported from the US - first in 40+ years, that can be a game changer.

 

Many states are raising fuel taxes for "road improvements" and some states are selling turnpikes to foreign investors and raising tolls.

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Don't forget that all that kinda changes as

 

Congress is now allowing oil to be exported from the US - first in 40+ years, that can be a game changer.

 

Many states are raising fuel taxes for "road improvements" and some states are selling turnpikes to foreign investors and raising tolls.

All good points, and none of them were mentioned in the few articles I read from big-name news sources. And of course, none of those factors were talked about in AAA's predictions.

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Don't forget that all that kinda changes as

 

Congress is now allowing oil to be exported from the US - first in 40+ years, that can be a game changer.

 

Many states are raising fuel taxes for "road improvements" and some states are selling turnpikes to foreign investors and raising tolls.

 

Another source of oil on the world market is going to cause the price to rise?

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There are currently some US refinery's shut down because of flooding. That may impact prices in the coming months. This may have happened after AAA made their predictions. I think it's 5 in total now preparing for the flood waters that are heading south.

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I read Saudi Arabia is doing exactly that in an effort to oust some of its U.S. competition, which seems to be getting squeezed on both sides, judging by Bill B. comment.

 

Yes, plus don't forget that Russia is dependent on oil revenues. And it seems we are headed for another cold war with them. Exporting US oil will raise gas prices in the long run.

 

Enjoy the low oil prices....and hope that they rise. If they stay low it probably means that the world economy will stay very slow.

 

One new thing to look at for.....I noticed that several stations are raising prices far beyond market. I just paid $3.49 for diesel when 20 miles and one state line away it was $2.39. Yesterday is was 2.99 versus 2.39. Oh well, my navigator is missing for a few more days.

 

Check gas buddy.

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Today a news commentator suggested gas prices may fall to $1/G this year. I'm skeptical; elsewhere in the world gas is much higher than North America, this worldwide economy is bound to increase oil prices, but IMO it hinges on OPEC regrouping amidst current regional unrest.

UPDATE: Four days later, gas 1.66/G, diesel 1.68/G. Didn't last long.

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WASHINGTON (Reuters) - The U.S. Congress voted on Friday to repeal the 40-year-old ban on exporting U.S. crude oil in an energy policy shift sought by Republicans as part of a bipartisan deal that also provided unprecedented tax incentives for wind and solar power.

The Senate, on a 65-33 vote, approved lifting the ban and providing five-year extensions of tax breaks to boost renewable energy development as part of a $1.8 trillion government spending and tax relief bill that President Barack Obama quickly signed into law.

The House of Representatives passed legislation containing the energy provisions earlier in the day by a 316-113 tally..

 

There are a lot of articles on the subject that will help to explain and understand the pros and cons of the action.

 

Bottom line is we are all Rv'ers and fuel is a high expense on the budget. We will be doing about 7K miles this summer so we hope the low prices hold for awhile

 

The date of the article was December 18,2015.

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WTI (West Texas Intermediate) closed today for $31.25 per barrel. Remembering that a oil barrel is 42 gallons (and why that odd number?? why not 55 gallons) makes the raw material $0.7440 per gallon.

 

According to EIA.gov

 

Refineries in the United States produced an average of about 12 gallons of diesel fuel and 19 gallons of gasoline from one barrel (42 gallons) of crude oil in 2014. Many other petroleum products are also refined from crude oil. Refinery yields of individual products vary from month to month as refiners focus operations to meet demand for different products and to maximize profits.

 

Now through in some taxes - Federal, State

 

How much tax do we pay on a gallon of gasoline and diesel fuel?

 

The taxes on retail gasoline and diesel fuel, in cents per gallon, as of July 1, 2015:

 

Gasoline Diesel

Federal 18.40 24.40

Average of all states 26.49 27.24

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Just before we left upstate NY on a trek south yesterday, we saw our first under $2/gal ($1.99) for regular gas in that area. i know there are others, but that was the first we'd seen around our cottage. An attendant was changing the previous $2.01 price at a Speedway just as we pulled in to top off the coach and toad. Our 5% PenFed Visa cash rebate brings it down to about $1.89. We're still looking forward to the $1.60 in SC though!

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imo gas prices wont go to a buck a gallon, mainly tax's. but im sure we all be happy with $1.25 gallon. an $1.50 for diesel.

in my area we now at $2.05 Diesel, an $1.85 for gas. tourist area worst of its kind. but oil flirting with $30 a barrel is looking good for us an with El Nino effect that is sort of helping, warm up north, so less heating oil used.. But ppl still need to conserve there use to keep supply well over what we consume.

That is main factor on price.

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Gas is going to be cheaper in the south. I am betting Texas will continue to be one of the cheapest while the over taxed states in the east and west will be the most expensive.

By the way I filled up yesterday at my local Racetrack reg. $1.49 for Reg. $1.62 for diesel. My best price was a couple weeks before Christmas I had the coach out and filled up at Kroger for $0.989.Love my Kroger points.

Bill

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The low diesel and gas prices have saved us a lot of $$ thus far this winter. The trip down from Ohio in mid Oct was 101.00 less than the same time last year. We hope it keeps up as we have a 7K miles trip planned this summer. Bottom line is we are going but it would be nice to save a few bucks.

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