Fuel Prices - RoTi short term energy outlook  -  April/May 2008  <  Roaming Times

Fuel costs - Roaming Times

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April/May 2008
RoTi short-term energy outlook

GOVERNMENT PREDICTION
"Motor gasoline prices are projected to average $3.36 per gallon in 2008, up 55 cents from last year. Diesel prices are projected to show even larger increases in 2008, averaging $3.62 per gallon, or 74 cents above the 2007 average price."   

RoTi view:
Who knows? - what about an economic slowdown as well as Iraq, Iran and whatever?  If you're going to make a big trip, check back and we'll try to find interesting fuel cost stuff ..

This is a monthly compilation by RoTi based upon government and several other sources.  Posted April 10, 2008.
Key points:

  • Projected higher costs for crude oil will contribute to higher petroleum product prices. Motor gasoline prices are projected to average $3.36 per gallon in 2008, up 55 cents from last year. Diesel prices are projected to show even larger increases in 2008, averaging $3.62 per gallon, or 74 cents above the 2007 average price. The monthly average gasoline price is projected to peak at about $3.60 per gallon this spring, while monthly diesel prices are expected to average about $3.90 per gallon in March and April. Weekly diesel prices have already crossed the $4.00-per-gallon threshold in many regions of the country.   
  • TRAVELING LESS? - "U.S. consumption of liquid fuels and other petroleum is expected to decline in 2008 by about 85,000 barrels per day (bbl/d) as a result of the economic slowdown and high petroleum prices.  After accounting for increased ethanol use, U.S. petroleum consumption is projected to fall by 210,000 bbl/d in 2008."  
  • PRICE VOLATILITY - It is important to note, however, that even if the national average monthly gasoline price peaks around $3.60 per gallon this summer, it is possible that prices at some point will cross the $4 per gallon threshold. There are several reasons why this may occur:  Variations around the monthly average .. Variations across States .. Variations within States

Why does diesel cost more than gas? - RoTi article with readers' comments

ELECTRICITY

  • Consumption. "Given the assumption that summer temperatures this year will be close to normal, total annual electricity consumption is expected to grow at a relatively slow rate of 0.7 percent in 2008 and return to a more normal rate of 1.3 percent in 2009"

  • Prices. "Spot prices for coal, especially in the Appalachian region, have rapidly increased in recent months.  However, due to the lagged effect of purchase contracts and rate regulation, these fuel cost increases are not expected to have a significant impact on retail electricity prices in the near-term. Residential electricity prices are projected to increase at a rate of 2.7 percent in 2008 and a slightly higher rate of 3.1 percent in 2009"

GAS PRICES - GOVERNMENT FORECAST

"Motor gasoline prices are projected to average $3.36 per gallon in 2008, up 55 cents from last year. Diesel prices are projected to show even larger increases in 2008, averaging $3.62 per gallon, or 74 cents above the 2007 average price."

What do you think? - add your comment here

Readers' comments:
Latest first

Ben Cater :   Fuel prices are just going up and up. I got diesel in Northern California today and paid $470 for a tank! Now almost $5 a gallon.

Rosemary :   Is RVing a real possibility with fuel prices as they are? We need some sort of alternative power for RVs or if prices continue to rise, who will be able to afford it?

Dick-Jane & Spot :   Agree completely that we'll just stay longer and travel to fewer places--but travel we will. We are looking to buy a class A Newmar M/A or Essex--03-05 FROM AZ PRIVATE PARTY--NO DEALERS PLEASE--dickrenoud@yahoo.com

rebnga :   Nothing will happen to reduce campsite fees until some rv organization leads the charge, but like campsite owners, the rv organization are also in it for the dollar. They pat us on the head, but don't really go to bat for us.

Morris :   Sometimes I want a 'destination' campground with pool, recreation, etc. Other times I need only a clean, safe place to spend the night before hitting the road again. Passport America has proven a good source for 'half price' campgrounds. Many are definitely overnight accomodations and others are very nice, pleasant places to spend a few days, but PA does offer a respite from high priced overnight rest areas.

Keith K :   Gas prices do have an effect. We'll restrict our miles and stay longer in each place.

SILVER FOX :   A LOT OF CAMPSITES ARE VERY NICE AND A LOT OF THEM ARE JUST TRASH.SO GAS PRICES GO UP AND SO DOES THESE NICE CAMPSITES.EITHER WAY SOMEBODY WILL ALWAYS BE OVER CHARGING ALL OF US.UNTIL WE PUT A STOP TO IT.

Kosey48 :   Fuel prices are going down. Is this temporary before they go up again? Why are they going down, I watch tv and nobody really explains it.

Homer :   I think the prices of fuel will continue to rise. You are now financing their next move into alternate fuels, or the price of new drilling fields. I think this will wreck the RV industry eventually. When you factor depreciation,cost of operation,repairs, insurance, rising campground fees including State and Federal fees, it is becoming an all around loser.

NV :   Risng fuel prices are a concern but the costs of nice RV campgrounds are a higher concern than fuel prices; many national and even privately-owned campgrounds are pricing themselves out of my willingness to pay; BOONDOCKING will become a much higher priority to help and offset higher fuel costs - our business will be given to those stores and RV friendly gas & truck stops that indicate they WANT our business

toocrazy :   Well if you were thinking of buying an RV or travel trailer you maybe delaying or abandoning the idea with these increases in fuel. If getting from point A to point B becomes a mortgage payment, most folks would have second thoughts. How is the health of the travel trailer industry in Europe?

Jennie H :   I don't agree. I think fuel costs have a big effect. The investment in the RV is a different thing. We've done that but we still have a monthly budget and that's where fuel costs come in. I agree with RoTi the government predictions don't take account of unexpected political things but I still think it's useful to get these predictions. We're fulltimers and the effect on us if fuel costs shoot up will be that we'll do less miles and just stay in one place longer.

Jeff S :   Not a big effect at all, fuel has always gone up over time. I see the investment of the RV itself as the biggest cost. I'll still take 5-7 trips a year, 10 mpg on avg. how many miles can I afford to go? If I feel the need to go further, I'll have to give something eles up, or just ask the young generation to pay for it. We've worked our whole lives, we desirve more in SSI. ...right?

Jim B :   With fuel prices rising, we will have to stay longer at one campground area instead of moving on more often. When fuel costs rise and campground rates reach $40 and up you are as well off to start looking at motels when you travel on trips of two weeks or less. Have stayed in some of the nicest campgrounds for as little as $15 per night that were as nice as some costing three times as much. If they can operate at those rates so could many others which instead just "Keep On Adding". They need to realize that they are not five star hotels.

   What do you think? - add your comment here

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