
Have you noticed the ridiculous price of diesel fuel lately? It’s more than $4/ gallon at my gas station and I am frankly baffled as to why. It is cheaper to manufacture than any of the other grades of auto gasoline and I am predicting additional potentially severe macroeconomic effects this will have on the goods we buy.
At first glance you may not pay attention to the price tag but I assure you, it is affecting you more than you realize. The reason is because of how our goods are distributed. We know all those big trucks carry the vital consumer commodities necessary to sustain our economy. Since the distribution costs of these goods have doubled in a short period of time, it only makes sense that we are going to feel the pinch at the retail levels. I see that upward pressures to raise prices have already begun at the grocery stores and travel industries. Airlines have been “surcharging” for soaring jet fuel costs for the past couple of years I look for similar trickle down in the stores.
So what can we do about it? I think increasing production in some of the other areas such as Canada and S. America could help the fears of “lack of supply” and drive prices back to reasonable levels. Also, a continued push for alternative fuel sources should be near the top of the list so we can reduce our dependence on foreign oil.
What are some other measures we can take to curb fuel prices thus keeping inflation from getting out of control?
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9 Comments
As consumers, most of us, think of the gas price, but then forget about the fuel for truckers. Typically, a fuel charge is a little harder to explain on the why's for diseal fuels...not just for the truckers, but we think over-all too.
The science is there to eithier increase the diesel distance...or createt a mixture of other energy fuels. To combine and digest an effecient fuel. N.A.S.A . science might be a little too explosive n their fuels...lol. However, it could help a mixture intp a feasable cost effective ratio for trucking fuel. The science is there. And maybe more cost effective.
Another solution that may get missed...To increase the volume of freight for truckers as to more full loads or increase volume loads to help offset the increase charges. The economy is sluggish...so truckers or even in the air-line industry may have a problem. A big one. So, that means more fuel cost with less. To increase that ratio.
The last suggestion that we thought about that may actually help to drop the fuel prices or at least make a stament back to the gas/fuel/oil companies. A strike to stop...it may help. And then proceed in collective bargaining. A strategy.
1) The falling value of the US Dollar
2) Tense political situations with oil producing countries
3) Lowered local production
4) High demand - increasing population and number of cars on the road
5) Limited resources - oil wells may be running out in the next 20-50 years
7) Or could be a coalition formed by oil companies that want higher profit for the same output.
Either one, all of the above may be true.
To solve this problem:
1) Use alternative energy sources - solar/wind/biofuel/waves/water
2) Use renewable energy sources
3) Be energy independent as much as possible
4) Be fuel savy
Prince Dudley,
Systems Engineer
http://birdseyesview.blogspot.com
Media conflicts, create STRESS in the population, and when sharks smell blood in the water, they capitalize. Staying calm and not making emotion-based decisions I feel is the best thing we can do as consumers to keep the blood out of the water in the first place. There is no valid excuse for the gas prices to rise- it does not all of a sudden cost more for oil than it did a week ago because WE ARE RUNNING OUT, and besides, it takes longer for the oil we buy right now to be at the pumps anyway-
The flipping media makes me nuts, they cause so much sensation and out of that sensation the prices inflate, not because the value of the product suddenly went up, but because the mentality of the consumer went spiraling into the fear zone and they think they can do it without getting in too much trouble. It happens because we are DISTRACTED as we spiral into the stupid media driven orbit we live in.
It costs a lot of money in fuel to send goods by trucks all over the country, but we have a lot of coal, why can’t we send that stuff around on trains?
I know the trucking industry is getting screwed in that solution, but in the meantime they could go back to school or maybe the government can pay them not to drive a truck like they pay the farmers not to grow wheat!
Either way, it is stupid to send stuff all over in trucks, if the gas price is not going top out! What we will have to do is pick a single location in the state to deliver all the goods to, and have trains do the rest, or have people ride a bike to come get produce, that will take care of the high rates of heart attack and suicide because we will have to really work hard just to get to our food source, and we might even get some fresh air and exercise!
Get rid of all the truck routes, and deliver the food all to one place- when the wives of the oil company billionaires have to ride by train the take a bike to pick up goods they will start using left over cooking oil that they KNOW works for diesel engines and cut the CRAP!
On the so-called "weak dollar," the fact that we have somewhere less than $.10 in real money sitting around for every $1.00 in circulation is the core problem. Every time the Federal Reserve cartel lowers rates and inflates, things get worse. We need a value-based currency or a change in law to dissolve the fractional reserve method of money lending. In other words, close down the Federal Reserve or at least open the scheme (scam) up to competing currencies. As it stands, instead of all of this lip service about free trade, let's actually see a free market in currency.
I have two VW diesels that I have been using B100 in. I am also working to perfect the method of mixing biodiesel myself using spent vegetable grease from a couple of Chinese restaurants that I collect from. I fully expect to be running on this entirely by summer. It costs between $.50 and $1.00 per gallon to produce in my case and there are tax incentives involved.
The purpose: to transport oil via a contained pipeline that would benefit Russia. It would make diamond mining easier too.
While we are being "entertained" by the possibilities of global connection, who is aware of the experiments on climate control being done in space?
I always felt that "the country who controls the weather, controls the food supply and the economy of the World."
If you ever watched the experiment involving a magnifying glass, the sun, and a piece of paper, you know how easy it is to start a fire. By performing this experiment from a space station that conducts experiments in secrecy, it is not hard to imagine ice caps being melted for the purpose of political power.
I think our country has alot more at stake than debating the price of diesel. Wake up people,
Greed is a punishing business. Are we prepared for the consequences?
I believe the prices will continue to go up since the demand will be much higher in future due to the growing economies of India and China. Their thirst will drive the prices of oil, gas and diesel up - way up!
The solution is may be the look at alternative sources of energy such as Biofule, solar and so on. But then again we have been talking about these alternatives for years but as a nation we have not taken serious steps to reduce our dependence on oil. Hope everything is going well at 40 Wall Street. Regards,
Koz Khosravani
CEO/President
Koz Wealth Systems
http://www.KozWealthSystems.com
http://www.ExpertsTV.com
We will run OUT, not anytime soon, but we will RUN out! This is not the thrust of my argument; the point is, they ARE NOT the wise business choice, as one other post here points out! Why would people spend $4.00 a gallon on Diesel when a blend of used cooking oil can run that same ENGINE for .50-1.00? Brace yourself the answer is in the observations that many have reported of the American culture. While it may be tough to hear, we are viewed as spoiled immature brats, and we like everything to be "convenient". I know there are people out there, who will disagree with this statement, but I have conversations with people the world over, they all have a similar observation of our culture, we are SPOILED, and reckless! We do not change the dependence on bio-fuel because we do not HAVE to. When we have to travel 100miles or more by bike to get produce we will consider how to make something to get us to that location in half the time, without breaking a sweat, because we ARE spoiled and we will still WANT our "stuff". We ought to TAKE advantage of this TRAIT in the American culture and just put some "stuff" out in the middle of nowhere that can only be retrieved by those willing to pull together some ideas and policy regarding the existing cars, and making news ones that people can afford. If you made it a contest, some group of geeks would fix this whole issue by Wed of next week! The problem is we just do not take advantage of whom we really are, and put those character defects to work for our advantage- rather we are content to let those defects destroy us from the inside out!
"Good old fashioned greed", it is our absolute sensational TRUTH taken root, a truth that I doubt we are prepared to pay the long-term taxes on.
This issue, is not as complex as the oil companies would have us believe- it is about wanting something better, dreaming it could be that way, then pushing self and others towards that finish line! In Iceland 99% of its electricity comes from geothermal energy- meaning that they dig holes into the earth till they get to where it is "hot" then pour water in it, and like magic they get steam! We act as if we do not know that this could work, we act as if we don't have the science to solve our energy problems, when in truth if we can help other countries design systems that deliver energy at 1.72 cents per kilawatt hour vs the 9.63 cents we get out of petroleum then WE could do it for our own country as well! The only thing that STOPS us, is that WE DON"T HAVE TO!
For the record I will take the salad please, hold the oil, and maybe some steamed vegies!
Very Warm Regards,
Tammie L Anderson Coffey
Author, researcher, poet
I agree we should make development of alternative fuels a top priority - along with technology that reduces fuel consumption. We need to demand that the auto manufacturers produce vehicles that are much more fuel efficient. The technology is available. There is no reason we should accept anything less.