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Gas prices hit $4 in California – Daily Democrat Online

By   /   February 11, 2013  /   8 Comments

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Gas prices hit  width="459" height="302"  in California - Daily Democrat Online

Here we go again.

Gas prices are above or near an average of $4 a gallon statewide, and are already well over that dreaded mark in Southern California. GasBuddy.com showed gas selling for $4.01 on Thursday, while the AAA listed the state average at $3.99 — a jump of three cents from Wednesday, 22 cents from a week ago and 37 cents from last month.

While drivers may not yet be freaking out like last year, when the record of $4.67 was reached on Oct. 9, they are none too pleased, especially with the peak summer driving time still months away.

“The fact that nationally we are using less gas but the cost goes up is really frustrating,” said Jim Matthews, 56, a librarian from Alameda. “And that makes us feel helpless.”

Energy watchers blame the usual factors — high crude prices, refinery problems and the conversion to California’s more expensive summer blend of fuel, which requires a slowdown in production before the change.

via Gas prices hit $4 in California – Daily Democrat Online.

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About the author

Dan OBrien

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Cactus Thorns has been online in one form or the other since 2001. What started as a personal blog documenting the corruption and lack of Due Process of the 29 Palms Community Development Department has turned into over these many years into a hugely popular Independent Alternative News Media Outlet. We have partnered with other media including The Desert Star Weekly, Joshua Tree Star, other blogs, indie media and an incredible staff of volunteer Reporters, Commentators and Opinion Makers to create one of the most read, honest and dependable alternative to the Local traditional Media services in the country. Thanks to you the reader we are in the 5% of most read sites in the World.

8 Comments

  1. Ed Montgomery Ed Montgomery says:

    In my opinion, the gasoline prices are big ripoff there's no reason for the gas prices to be so high. I know people right now that have to choose between buying food or buying gasoline for their car, which is a shame to live in this great nation and have to make a choice like that.

    I hate to say it but I think the US government needs to go back and start regulating oil prices in the United States. Each year that oil companies are making billions and billions of dollars in profit every year, each year the profits are higher than the year before. I find the oil companies to be extremely greedy, the name of the game is to raise the oil prices as high as they can as fast as they can. They will do whatever it takes to get the highest prices. Somebody needs to do something to bring greedy oil companies back into check. Also the oil companies have a big monopoly on the price of oil.

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    • Dan OBrien Dan OBrien says:

      Most people, if asked to name off the top of their head which industries were taking advantage of consumers to generate insanely high profits, would likely have the oil and gas industry at the top of their list. Isn’t it a well-known fact that with gas prices spiraling through the roof, “Big Oil” is by far the most profitable industry out there, hence they must be taking advantage of consumers?

      Actually, it’s not that simple. But public opinion would have it otherwise.

      In fact, industries such as internet information providers and personal computers rank well above major integrated oil and gas (Big Oil) when it comes to profit margins. The simple definition of profit margin is: A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.

      To be sure, the U.S. oil majors have been generating huge profits. As U.S. President Barack Obama pointed out in a recent speech urging Congress to repeal tax breaks for the oil industry, “the three biggest U.S. oil companies took home more than $80 billion in profits. Exxon pocketed nearly $4.7 million every hour.” For more on the breakdown of gas prices, see: What Makes Up the Cost of a Gallon of Gasoline?

      But it’s difficult to see it as ‘windfall profits‘ for the oil industry when they rank so low in terms of profit margin. The fact that they’re turning such a large profit speaks more to the scale of their operations rather than excessive profits.

      Out of every dollar they did in sales during the most recent quarter, the Major Integrated Oil & Gas industry (a.k.a. Big Oil) kept 7.9 cents in earnings. Compare their 7.9% profit margin to those of Publishing – Periodicals (53.1%), Brewers (20.3%), Industrial Metals & Minerals (26%), Drug Manufacturers – Major (16.7%), Railroads (15.55), Water Utilities (12%), Cigarettes (22.5%), and Industrial Metals & Minerals (26%). Or compare it to other industries that have benefited greatly from high commodity prices such as Silver (41%), Copper (25.1%), and Gold (24%).

      Courtesy: Yahoo Finance
      Rank Industry Net Profit Margin (mrq)
      1 Publishing – Periodicals 53.1
      2 Silver 41
      3 Closed-End Fund – Foreign 38.3
      4 Closed-End Fund – Equity 30.1
      5 REIT – Diversified 29
      6 Industrial Metals & Minerals 26
      7 Copper 25.1
      8 Gold 24
      9 Internet Information Providers 23.8
      10 Application Software 23.2
      11 Cigarettes 22.5
      12 REIT – Healthcare Facilities 20.9
      13 Beverages – Brewers 20.3
      14 REIT – Residential 20.1
      15 Diversified Investments 18.4
      16 Semiconductor – Integrated Circuits 18
      17 Regional – Southwest Banks 17.7
      18 Semiconductor – Broad Line 17.2
      19 Beverages – Wineries & Distillers 17
      20 Drug Manufacturers – Major 16.7
      21 Foreign Utilities 16.5
      22 Personal Computers 16.2
      23 Semiconductor Equipment & Materials 16.1
      24 Publishing – Books 15.6
      25 Railroads 15.5
      26 Regional – Northeast Banks 15.3
      27 Agricultural Chemicals 15.2
      28 Beverages – Soft Drinks 15
      29 Networking & Communication Devices 14.7
      30 Drug Manufacturers – Other 14.1
      31 Wireless Communications 14
      32 Medical Appliances & Equipment 13.7
      33 Oil & Gas Drilling & Exploration 13.6
      34 Medical Instruments & Supplies 13.6
      35 Savings & Loans 13.3
      36 Personal Products 13.3
      37 Security Software & Services 13.2
      38 Conglomerates 13.1
      39 Technical & System Software 12.9
      40 Air Services, Other 12.9
      41 Research Services 12.8
      42 Regional – Midwest Banks 12.7
      43 Real Estate Development 12.4
      44 Property Management 12.1
      45 Water Utilities 12
      46 Biotechnology 11.9
      47 Semiconductor- Memory Chips 11.5
      48 Processed & Packaged Goods 11.5
      49 Specialty Chemicals 11.3
      50 Semiconductor – Specialized 11.2
      51 Confectioners 10.7
      52 Mortgage Investment 10.6
      53 Long Distance Carriers 10.5
      54 Telecom Services – Domestic 10.4
      55 Money Center Banks 10.2
      56 Diversified Computer Systems 10.2
      57 Business Services 10.2
      58 Credit Services 10.1
      59 Resorts & Casinos 10
      60 Restaurants 9.9
      61 Education & Training Services 9.9
      62 Business Software & Services 9.9
      63 General Entertainment 9.8
      64 Broadcasting – TV 9.8
      65 Toys & Games 9.7
      66 Regional – Pacific Banks 9.7
      67 Asset Management 9.7
      68 Drug Related Products 9.5
      69 Textile – Apparel Footwear & Accessories 9.4
      70 Specialized Health Services 9.4
      71 Investment Brokerage – National 9.4
      72 Foreign Regional Banks 9.4
      73 REIT – Office 9.3
      74 Specialty Eateries 9.2
      75 CATV Systems 9.1
      76 Paper & Paper Products 9
      77 Scientific & Technical Instruments 8.9
      78 Property & Casualty Insurance 8.7
      79 Data Storage Devices 8.6
      80 Oil & Gas Equipment & Services 8.5
      81 Diversified Utilities 8.5
      82 Information & Delivery Services 8.3
      83 Industrial Equipment & Components 8.3
      84 Diversified Electronics 8.3
      85 Independent Oil & Gas 8.2
      86 Gas Utilities 8.2
      87 Diversified Machinery 8.2
      88 Synthetics 8.1
      89 Entertainment – Diversified 8.1
      90 Major Integrated Oil & Gas 7.9

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      • Mark Clemons Mark Clemons says:

        Dan you’ve been brainwashed by big oils lobbyist you know their PR guys

        Where is the outrage? Where are the investigations?

        Goldman Sachs (GS), Morgan Stanley (MS), BP (BP), Total (TOT), Shell (RDS.A), Deutsche Bank (DB) and Societe Generale (SCGLY.PK) founded the Intercontinental Exchange (ICE) in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate "dark pool" trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.

        http://seekingalpha.com/article/172797-the-global-oil-scam-50-times-bigger-than-madoff

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        • Dan OBrien Dan OBrien says:

          Well Mark tell me, out of the Gallon of gas I buy, divide up who gets what? Tell me Mark who gets the lions share of the cost of that $4.00 a gallon gas?

          Is it OPEC, is it The total Tax burden, is it the oil companies? Tell me Mark break it down for me.... I am willing to listen..

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          • Dan OBrien Dan OBrien says:

            Here is a great place to start ..... State of California web site.

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          • Mark Clemons Mark Clemons says:

            oh dan my funny man, says he will listen, but can he learn? what was Inron? what was their trading scam and how did it work? ICE is no different. if u think about it was it not the same type of bankster trading that took us for the housing ride? It is not your heroic oil men per say,it is the global banksters extracting the peoples wealth. the richer get richer and the middle gets poorer. I think we went here before, no sence in the rehash

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      • Terry Elam Terry Elam says:

        Then you figure in total sales as well assets not counted as profit and... we're back to square one. They're not quitting their jobs.

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