probowler Posted November 14, 2014 Share Posted November 14, 2014 (edited) Those low gas prices on station signs aren't going away soon, the government says. In a dramatic shift from previous forecasts, the Energy Department predicted Wednesday that the average price of gasoline in the U.S. will be $2.94 a gallon in 2015. That is a 44-cent drop from an outlook issued just a month ago. http://www.msn.com/en-us/money/spendingandborrowing/govt-tells-us-drivers-to-get-used-to-cheap-gas/ar-BBdqDOp This has potential huge consequences for Ford and the automotive industy alike. Gas prices come down, and SUV/Truck demand skyrockets This has clear implications like an increasing likelihood of the Bronco making a comeback, Bringing the Everest Stateside, or just plain making more SUV/Trucks... Then there's the new F150, whose main selling point is light weight, huge gas-savings. What happens when high MPG isn't a priorty? Will be interesting watching the market the next few years. Edited November 14, 2014 by probowler Quote Link to comment Share on other sites More sharing options...
jpd80 Posted November 14, 2014 Share Posted November 14, 2014 CAFE. Quote Link to comment Share on other sites More sharing options...
lfeg Posted November 14, 2014 Share Posted November 14, 2014 And are supposed to believe the government? 1 Quote Link to comment Share on other sites More sharing options...
ironhorse Posted November 14, 2014 Share Posted November 14, 2014 Yea, how is that affordable health care the government promised working out? 3 Quote Link to comment Share on other sites More sharing options...
grbeck Posted November 14, 2014 Share Posted November 14, 2014 Remember the old saying: Predictions can be dangerous, especially those involving the future. 2 Quote Link to comment Share on other sites More sharing options...
92merc Posted November 14, 2014 Share Posted November 14, 2014 My coworker and I have a conspiracy theory about the oil prices and resulting gas prices. The shale plays in ND and Texas are dropping the US dependance on foreign oil. Now that the US is ramped up for fairly substantial production of our own, the Saudi's are feeling the pinch a bit. The Saudi's don't want to loose their money, so they're pumping away even at the lower oil barrel amounts. Our theory is that the US and Saudi's are pinching both Iran and Russia. Mainly Russia. So much of the Russian economy and the government's taxes are dependent on oil. If that market price is driven down far enough and hard enough, Russia won't be able to afford their own government. It'll be a second collapse of their economy. The US government knows this. Which is why they are predicting the gas prices to stay low. There is a oil war going on and it isn't stopping. Russia is feeling the pinch in a big way. Which is why you're now seeing the Russians do fly by of bombers near the US borders. You're seeing "secret subs" penetrating into Swedish waters. We're likely to see Russia retaliate in other ways soon I predict. 2 Quote Link to comment Share on other sites More sharing options...
lfeg Posted November 14, 2014 Share Posted November 14, 2014 Ding Ding Ding. We have a winner! Quote Link to comment Share on other sites More sharing options...
Fordowner Posted November 14, 2014 Share Posted November 14, 2014 Yea you have to wonder why Putin just doesn't walk away from the Ukraine. The recent love fest between President Obama and China's Xi also should be viewed as another shot at Putin. Putin says Russia prepared for oil price collapse as more sanctions threatenedhttp://www.theguardian.com/world/2014/nov/14/putin-russia-oil-price-collapse-sanctions-g20 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted November 14, 2014 Share Posted November 14, 2014 The US government knows this. Which is why they are predicting the gas prices to stay low. There is a oil war going on and it isn't stopping. Russia is feeling the pinch in a big way. Which is why you're now seeing the Russians do fly by of bombers near the US borders. You're seeing "secret subs" penetrating into Swedish waters. We're likely to see Russia retaliate in other ways soon I predict. Well thats what happens when you go into other sovereign countries that you don't belong! Quote Link to comment Share on other sites More sharing options...
92merc Posted November 14, 2014 Share Posted November 14, 2014 Well thats what happens when you go into other sovereign countries that you don't belong! The US going into Iraq, Afghanistan, and Syria? Or Russia going into Ukraine? The problem is the Russians don't see a difference. If the US can do it, so can we. Problem is Russia is going to hurt themselves the most. Europe will stark making stronger ties to the Saudi's and US for oil and gas. China hasn't been exactly running to get Russian oil. With all the turmoil, many foreign companies will stop investing in Russia and possibly start pulling out. Russia will be isolating themselves with no way out. In 10 years, we could see a totally different Russia. Weak and in ruins. While China and the US keep on chugging. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted November 14, 2014 Share Posted November 14, 2014 Problem is Russia is going to hurt themselves the most. Europe will stark making stronger ties to the Saudi's and US for oil and gas. China hasn't been exactly running to get Russian oil. With all the turmoil, many foreign companies will stop investing in Russia and possibly start pulling out. Russia will be isolating themselves with no way out. In 10 years, we could see a totally different Russia. Weak and in ruins. While China and the US keep on chugging. Exactly...unless they get really stupid... Then again Russia has been more or less a basket case over the past 100 years or so. Since 1990's or so, they've lost nearly 20 million people population wise from poor health care and other issues...thats roughly the same amount of people they lost in WW2!!! Quote Link to comment Share on other sites More sharing options...
630land Posted November 14, 2014 Share Posted November 14, 2014 Why bring up Health Care? Anyway, let Russia spend their money flying over oceans, and wear out their planes, etc. But also, there will be a stockpile of Hybrids for when the prices go back up, which they will. Oil companies have to make $ too, that is Capitalism at its best. Quote Link to comment Share on other sites More sharing options...
ironhorse Posted November 14, 2014 Share Posted November 14, 2014 I spoke with my State Representative yesterday, and he was telling me how much our state road fund would be short if gas prices continue to fall. I am sure many states rely on gasoline taxes for revenue for their roads. Our state's budget forecasters didn't see this coming . Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 14, 2014 Share Posted November 14, 2014 Wait. What? Aren't gas taxes a fixed amount per gallon? 3 Quote Link to comment Share on other sites More sharing options...
akirby Posted November 14, 2014 Share Posted November 14, 2014 I thought gas tax was a fixed amount per gallon not a percentage of the price? 1 Quote Link to comment Share on other sites More sharing options...
351cid Posted November 14, 2014 Share Posted November 14, 2014 I thought gas tax was a fixed amount per gallon not a percentage of the price? It is. As a trucking operator, I have to file fuel tax every quarter. it's a set amount per gallon. Actually the opposite happens. When gas prices fall and people drive more or drive less efficient cars, then fuel usage goes up and tax revenue increases. 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted November 14, 2014 Share Posted November 14, 2014 Pretty sad if a state representative didn't know that. 1 Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted November 14, 2014 Share Posted November 14, 2014 I thought gas tax was a fixed amount per gallon not a percentage of the price? Changes drastically from state to state, but some states have sales tax on fuel or use taxes, in those states it vary's if that sales tax must be spent on roads or can be used for general fund. Michigan for example just uses the 6% sales tax on fuel as revenue in the general fund, it isn't earmarked for roads. They have just proposed to double the gas tax. Also even if gas gets cheap you still have to meet the CAFE numbers -- hopefully this won't take us back to the days that broke the industry of $9000 Focus to keep selling $60,000 F-150's. Quote Link to comment Share on other sites More sharing options...
ironhorse Posted November 14, 2014 Share Posted November 14, 2014 (edited) Apparently, my state is not a flat gas tax, it is a calculation based on the wholesale price of gasoline...according to my state rep. It's a 9% excise tax based on the wholesale price of gasoline when it enters a storage facility for resale. Edited November 14, 2014 by ironhorse Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 14, 2014 Share Posted November 14, 2014 Weird. Quote Link to comment Share on other sites More sharing options...
SoonerLS Posted November 14, 2014 Share Posted November 14, 2014 The US going into Iraq, Afghanistan, and Syria? Or Russia going into Ukraine? The problem is the Russians don't see a difference. If the US can do it, so can we. You don't even have to bring the wars in Iraq and Afghanistan into it--the US and USSR were busily sending subs into each other's territorial waters throughout most of the second half of the 20th century. If even half the stuff written about it is true, the US Navy' silent service did some crazy stuff during the Cold War... Quote Link to comment Share on other sites More sharing options...
351cid Posted November 14, 2014 Share Posted November 14, 2014 Apparently, my state is not a flat gas tax, it is a calculation based on the wholesale price of gasoline...according to my state rep. It's a 9% excise tax based on the wholesale price of gasoline when it enters a storage facility for resale. Do you live in Oregon? They're the only state that doesn't participate in IFTA (International Fuel Tax Agreement). All other states do. All states base their fuel tax on diesel on gallons. I'm about 99% sure that they do on unleaded and CNG as well since I'm required to track gallons / miles used on 3 axle trucks. There may be another tax added on distribution. I think NC is one of those states. In comparison to pump taxes, dist. tax is a small player. Quote Link to comment Share on other sites More sharing options...
akirby Posted November 14, 2014 Share Posted November 14, 2014 Apparently several states tie at least part of the tax to wholesale gas prices. http://www.api.org/oil-and-natural-gas-overview/industry-economics/~/media/Files/Statistics/State-Motor-Fuel-Excise-Tax-Update-Oct-2014.pdf Pretty stupid if you're relying on that for budget planning. The price of gas has no relationship to road maintenance requirements. Quote Link to comment Share on other sites More sharing options...
351cid Posted November 14, 2014 Share Posted November 14, 2014 Apparently several states tie at least part of the tax to wholesale gas prices. http://www.api.org/oil-and-natural-gas-overview/industry-economics/~/media/Files/Statistics/State-Motor-Fuel-Excise-Tax-Update-Oct-2014.pdf Pretty stupid if you're relying on that for budget planning. The price of gas has no relationship to road maintenance requirements. I'm going to say that a lot of those changes took place after the 2006 spike in fuel with the assumption that they would "ride the wave" of higher fuel costs. They deserve to be bitten, IMO. Quote Link to comment Share on other sites More sharing options...
351cid Posted November 14, 2014 Share Posted November 14, 2014 (edited) Correct me if I'm wrong, but I believe the tax is calculated on the wholesale cost per gallon and not revenue. Therefore, the efficiency of modern automobiles is what the cash crunch is on fuel tax revenue as opposed to sales at the pump. Edited November 14, 2014 by 351cid Quote Link to comment Share on other sites More sharing options...
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