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Published - Tuesday, October 14, 2008

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Gas prices fall with low demand, high supply


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Mack Shingler stopped at the Kwik Trip at Fifth and Cass streets Monday to top off his tank with 5.4 gallons of unleaded gasoline for $16.49.

Filling a 1999 Ford Explorer in increments makes it less painful, Shingler said.
Dennis Ryan fills his tank with gas at Bion's Mobil station on Jackson St. Dick Riniker photo

“This is definitely the time to fill up,” said the 20-year-old Viterbo University junior. “Whenever I can, I fill up in case gas goes up again.”

The price for a gallon of unleaded gasoline at many La Crosse stations has dipped to $2.99, its lowest price since December.

It’s a welcome relief from the $3.72 a gallon at the pumps just a month ago. Still, the price is higher than a year ago, when gas was $2.85.

The plummeting prices can be attributed to supplies rising as consumers cut back, said AAA Wisconsin spokesman Larry Kamholz.

“We continue to see a low demand from consumers because of the economic situation in the country,” he said. “People as a whole right now are very cautious with their cash and their traveling.”

Gasoline prices also are coming down after a hike associated with fears Hurricane Ike would damage oil fields off the Gulf Coast. The destruction was less than expected and damaged refineries quickly were repaired.

But predicting how low gasoline prices will go is like forecasting the weather. Just last week, the National AAA Foundation — which Kamholz described as the “guru” of gasoline projections — expected prices to fall below $3 ... by Thanksgiving.

“Even the top experts in the gas and oil business can only speculate to a point,” Kamholz said. “That’s how unstable everything is.”

The Organization of the Petroleum Exporting Countries, or OPEC, could decide to slow oil production, which likely would halt the price drop or even trigger a minor increase, Kamholz said.

But with an economy in shambles, decreasing demand and a slower driving season on the horizon, all signs point to continued declining prices.

That would suit Pat Wuerzberger of La Crosse, who believes $2.99 still is too high. A price of about $2.50 would be more reasonable, Wuerzberger said. He pumped just $10 — 3.3 gallons — into the 20-gallon tank of his Ford Explorer on Monday in hopes the price will sink even more in the coming days.

For Mike Parker of La Crosse, $2.99 gasoline means a $15 savings each time he fills his Buick station wagon.

“It’s good to see,” he said. “It’s been a challenge, paying for gas.”
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Big Spender wrote on Oct 14, 2008 4:50 PM:

" Re: enuff Martians:

Well, big corporations aren't doing well enough to pay their workers a proper wage these days:

"Working poor problem getting worse"

"Jobs paying below poverty line rise 4.7M in four years"

" report by The Working Poor Families Project, based on an analysis of U.S. Census Bureau data, found conditions worsened for the working poor in the four years ending in 2006, as the number of low-income working families increased by 350,000."

http://www.msnbc.msn.com/id/27181041/ "

enuffalready wrote on Oct 14, 2008 4:30 PM:

" Spender:

PepsiCo is a worldwide corporation. Closing 6 plants is not significant. They also employ over 185,000 people worldwide.

In reading their press release/conference call they make no indication what plants, or where they are located that they intend to close.

Fastenal net sales for the nine-month period ended September 30, 2008 totaled $1,795,466, an increase of 16.4% over net sales of $1,542,613 in the first nine months of 2007. Net earnings increased from $176,431 in the first nine months of 2007 to $217,169 in the first nine months of 2008, an increase of 23.1%. Basic and diluted earnings per share increased from $1.17 to $1.46 for the comparable periods

This just in:

Intel Shares Rise as Profit Beats Expectations

Not every company is doing poorly which you seem to be implying. This is true during any economic cycle or downturn. "

Big E wrote on Oct 14, 2008 4:24 PM:

" 27,000 Boeing machinists on strike for over a month. I wonder if their union is paying for their gas? "

enuffalready wrote on Oct 14, 2008 4:22 PM:

" Spender:

I've got good news and I've got bad news

The bad news is we are being invaded my Martians.

The good news is that they eat Democrats and pee

gasoline. :) "

what_that_too wrote on Oct 14, 2008 3:59 PM:

" OK, who changed that "n" to a second "a"?

Too much Firewater, Perhaps?

Nope, I don't drink. "

Big Spender wrote on Oct 14, 2008 3:59 PM:

" Maybe we won't need gas anymore for there will be no jobs to go to anymore?

"PepsiCo Cuts 3,300 Jobs, Lowers Forecast; Shares Drop (Update2)"

"PepsiCo wants to save $1.2 billion over three years as it closes as many as six plants and pares 1.8 percent of its workforce, including ``overlapping'' marketing and sales jobs, Chief Financial Officer Richard Goodman said today. Third- quarter profit fell 9.6 percent, missing analysts' estimates by 2 cents."

http://www.bloomberg.com/apps/news?pid=20601103&sid=adm0tOp62yaw&refer=us "

what_that_too wrote on Oct 14, 2008 3:55 PM:

" It's cheaper 'an booze. Aad REAL FireWater!

Oops!, now I have REAL Heartburn. . .

Kids, don't try this at home - or anywhere else! "

daddylonglegs wrote on Oct 14, 2008 2:31 PM:

" Its so cheap i've been spraying a little on the ground when i fill up. I usually let a gallon or two spray out just for kicks...its that cheap. "

Big E wrote on Oct 14, 2008 1:40 PM:

" Big Spender, you forgot to mention 2,300 of the 3,500 job cuts were in Cananda, Dailmer just re-hired 650 employees in Cleveland, and they recently purchased a large parcel of land for a new administrative center. All important facts. Also, were the job cuts union employees? "

nolibs wrote on Oct 14, 2008 1:36 PM:

" Nana you are 100% correct!!!

Taxing those that make over $250k/yr (ie. Big business) forces them to go elswhere to keep their business profitable. This country thrives on big business' weather anyone would like to admit it or not. The Tax hikes that Obama proposes will do exactly that force business to look abroad for cheaper options to run thier business. Thus taking economy boosting jobs with them.

Selfish liberals need to look at the big picture here. "

Big Spender wrote on Oct 14, 2008 1:17 PM:

" College students, this is what happens when you vote Republican:

"Daimler to axe 3,500 truck jobs"

"Daimler says its Sterling truck sales have not met expectations
At total of 3,500 factory and office workers at Daimler, one of the world's biggest makers of heavy trucks, are to lose their jobs."


http://news.bbc.co.uk/2/hi/business/7669941.stm "

Big Spender wrote on Oct 14, 2008 1:10 PM:

" Want more of the McSame economic chaos we've just seen? Vote McClown:

"McCain said his staff hates it when he discusses his shortcomings on economics, even though he has read widely and studied the subject. "I've never been involved in Wall Street, I've never been involved in the financial stuff, the financial workings of the country, so I'd like to have somebody intimately familiar with it," he said of a potential vice president."


http://economistsview.typepad.com/economistsview/2007/12/mccain-economic.html

So, McClown picks Payloon as "intimately familiar with it."

HAHAHAHAHAHA! "

CJ wrote on Oct 14, 2008 11:59 AM:

" The majority of folks don't care what gas cost. Live near a highway where the speed limit goes from 35 to 55 truckers and anyone that thinks their car/truck sounds good put the pedal to the metal and could care less. If someone goes to the gas station to simply put in 5 gallons that's just dumb..........Somehow everyone has always expected gas to be cheap compared to everything else it's just not that way. "

Big Spender wrote on Oct 14, 2008 11:36 AM:

" Gee, prices come down right before Big Oil's buddy, McCain, needs help--what a staggering coincidence? Supply and demand? No, temporarily-reduced speculation and price-fixing is more apt! Manipulation behind-the-scenes is the order of the day: who knows how much of this 'crisis' was staged?

FEY AS PALIN: "Well, Alaska and Russia are only separated by a narrow maritime border. (using her hands to illustrate) You got Alaska here, this right here is water, and this is Russia. So, we keep an eye on them."

"Tina Fey As Sarah Palin: Katie Couric SNL Skit (VIDEO)"

http://www.huffingtonpost.com/2008/09/27/tina-fey-as-sarah-palin-k_n_129956.html "

quay wrote on Oct 14, 2008 11:10 AM:

" It's just crap that this is all about supply and demand.I'm in my 40's and I've been in recessions and never has the gas dropped $1 in two weeks. Something has changed, it's the speculation market that drove the gas price up.Now that that money is leaving the oil futures market, the price is dropping. And the jobs we have lost nana3 are gone. They are not coming back. We need to created a new economy and the best I see out there is a green economy "

nana3 wrote on Oct 14, 2008 9:09 AM:

" The price of gas isn't falling as fast as it went up, and it still needs to drop 50% more to be in line with the economy.
Government isn't totally responsible for the shape our country is in, big business sending jobs to third world countries is one of the biggest problems. We have lost too many jobs to outside countries. Bring home the jobs and the economy will thrive once again. "

Willie wrote on Oct 14, 2008 8:48 AM:

" Big E, you are right though, if you drive a gas guzzling vehicle, you shouldn't complain. I do own two myself, but I actually do use my 4WD in the winter just to get out of my driveway to go to work. However, I am moving soon, and my next vehicle will be as economical and practical as I can afford. I will still keep one SUV for limited use. Most of my friends with SUV's have traded "down", so to speak. "

enuffalready wrote on Oct 14, 2008 8:25 AM:

" Rickey wrote on Oct 14, 2008 8:09 AM:

"As for socialized Medicine ,The Canadian plan works..."

**************

Rickey:

Why is it that so many Canadians come to the U.S. for their health care then? "

Rickey wrote on Oct 14, 2008 8:09 AM:

" Bush is using Marxist/Leninist methods to prop up the economy , As for Oil We need a TVA type utility using sun and wind. Also the offshore oil could be used to pay off Bushes and Reagan's Debt. As for socialized Medicine ,The Canadian plan works But Whatever happens Bush is still a Socialist "

rfield wrote on Oct 14, 2008 8:03 AM:

" Big E -

No way I need 4 wheel drive to make it 6 blocks to the grocery store. "

Big E wrote on Oct 14, 2008 7:53 AM:

" Perhaps a couple of the people interviewed for this article should trade in their Ford Explorers for more economical vehicles? Shame on me for sounding so liberal...... "

tax-me-more wrote on Oct 14, 2008 7:48 AM:

" Grant:

Although we agree, that McCain is embracing the OLD Democratic policies, you also appear to be a pro Obama socialist, is this correct? "

tax-me-more wrote on Oct 14, 2008 7:44 AM:

" Mack, Rickey:

Just to be clear, you both are ANTI capitalism PRO socialism? "

Mack wrote on Oct 14, 2008 7:13 AM:

" After the socialization of our banks, the world stock markets sky rocket. Americans are demonstrating confidence in government controlled industries. Other abused industries, such as healthcare are likely in the same boat. A healthy gas tax can help pay for it ---- after it helps dig us out of our current hole that George W. Bush dug for us. That loser is leaving this country in exactly the same shape he left every company he ever worked for. "

Rickey wrote on Oct 14, 2008 6:39 AM:

" If Bush can Nationalize Banks and Insurance companies then We Surely Nationalize Health Insurance and Oil companies "

Grant wrote on Oct 14, 2008 6:24 AM:

" People with employer paid health coverage will pay them if John McCain gets His way "

tax-me-more wrote on Oct 14, 2008 6:22 AM:

" Rickey
wrote on Oct 14, 2008 5:51 AM:

" People are losing on 401k etc and the economy is slipping . The repubINFLATION is taking its toll on Families. The Trickle down theory did not trickle down But The misery is Trickling Up "

I accept your statement that the "Trickle down theory did not trickle down," BUT that was income. We all know that TAX INCREASES "Trickle Down" 100%.
So, when Obama's big tax increases take affect, who will pay them? "

Grant wrote on Oct 14, 2008 6:01 AM:

" Bushs economy is wrecking the country, And Krusty the Klown and John McCain are both LOSERS "

Rickey wrote on Oct 14, 2008 5:51 AM:

" People are losing on 401k etc and the economy is slipping . The repubINFLATION is taking its toll on Families. The Trickle down theory did not trickle down But The misery is Trickling Up "

Krusty wrote on Oct 14, 2008 3:28 AM:

" Of course the idiot liberals will now believe that this is a grand conspiracy of the Republicans to help get John McCain elected. I'll have to stop back later with information on a very basic economics course that rickey, pickles, BS, etc, can take to learn how this new fangled "supply and demand" thingy works. "


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