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Subscribe to RSSA story last week reported that residents of Nome, Alaska, could be looking at a costly winter: $9-a-gallon gasoline. The news, rightfully, has some of the 3,500 residents in the coastal town freaked out.
"It is going to kill us," said Sunny Song, owner of Mr. Cab, which ferries children to school, nurses to their patients' homes and women to hospitals to give birth.
According to the Associated Press report, a winter storm prevented a barge that usually carries fuel from getting to shore. The most likely plan is to fly it in, but it would be costly and could be a logistical nightmare.
A gallon of gas was selling for $5.98 a gallon last week. The next barge delivery wouldn't be until next June. In the meantime, flying fuel to the city could increase the cost per gallon by $3 to $4, officials said.
To put that in context, the average price for a gallon of gas in New York is roughly $3.60. In Missouri, it's only $3.017.
To see what the price at the pump is in your neck of the woods, see AAA's updated chart .
The Associated Press contributed to this report.
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Well, that is about what most Europeans pay.....of course, they have no health care costs and university is free or very cheap....
Not just Europeans. The question is would you rather have the government subsidize your fuel, your healthcare, or your education.
Well Sam, being that $5 cost difference for most ends up with the gov't paying about 1,500 a year in subsidies, and my healthcare costing 10K, I'll take the healthcare and university.
Gasoline in the northeast runs about 3.50 to 3.80 per depending how far you drive down the street.
The other major difference is that most European cities are extremely pedestrian friendly, and public transportation is far better than pretty much anywhere in the United States.
Our Government subsidizes oil, education and health care now, it's a matter of degrees. But to put it another way do you want the cost of your oil, health care and education determined by how much profit a CEO and Board of Directors in a corporation want to make or the government? With the government you can vote them out and change things with CEO's and the Board you have no control unless you own a million shares.
Dick... you actually have more control with CEO's and the Board than you do with government. You can always take your money/business away from a company you think is cheating you. If government passes a law though it is very hard to get it repealed.
Dick and gday67, do you really believe there is much of a difference between the government and corporate interests. They currently live to support each other and the goal is to squeeze as much juice out of you and still not have you attack them.
homesick yank,
You're an idiot. First, in Europe they don't drive nearly as much. I go through a tank of gas every day and a half. Most people not living in the city (ghetto) have to commute. At high prices the entire economy would collapse from people not even being able to afford to drive to work. Second, you are welcome to leave and pay those gas prices if you'd like...
Working hard is right I don't remember anyone asking me for permission to live there. Besides he's also right when he says that Europeans ride the bike almost everywhere. This is good for them and good for their pocketbooks.
The government doesn't subsidise fuel, it just doesn't tax it much either. It's not as if gasoline has to be flown to Europe; they just add a massive tax to it. It must be around 100%.
@ hunter,DONT TAX FUEL MUCH? are you stupid or just mis informed? do the math and get back to us.....
Don't you find it just a bit ironic that Alaska, the leading producer of crude oil in the U.S., who provides rebates to their citizens due to the immense amount of money generated from it, must now pay the highest gasoline prices in the nation? How do you like that "hope-y, change-y thing" now?
They might be the leading producer of oil in the US, but where does their refinement output stand on a state by state basis? You could bring up billions of barrels of crude oil and it wouldn't mean anything unless you can refine it into oil.
Look at Iran, they're probably in the top 2 or 3 oil producers as far as the world market goes and they still have a high cost of gas b/c their ability to actually refine the crude into oil is so outdated and insufficient that they have to send most of it out of country to actually be refined.
Da derp a derp! Derp a derp a derp! Obama derp derp oil derp derp! DERP!
It's an isolated non-oil producing island ... the real question is why are these morons living their.... if you can't afford it go live in Fresno, why live on the ass end of the Earth?
Oh no, not da derp a derp! Derp mean a derp a derp derp?
Generally speaking, Alaska produces OIL. Not gasoline. There's a big difference. Even in a community that grows wheat, Twinkies cost a few bucks per box.
It's just ridiculous! Alaska has many refinieries! And if that goddamn Obama hadn't made it snow so hard, making it so hard for those planes to deliver gasoline, they wouldn't be in this mess! Because EVERYTHING that goes wrong is his fault! He promised to stop the snow in Alaska and he promised to turn water into wine and he promised to cure cancer...that's change we can believe in!
He could save a burning orphanage and you people will find umbridge with his actions somewhere.
@RMJ: Alaska has SIX refineries. I suppose compared to Kentucky's 3, that constitutes "many" to you. But, it's also fairly significant to note that not one of those 6 are in Nome. Which means the refined product called gasoline must still be transported into Nome somehow.
The point is that there is no irony that gasoline costs so much in Alaska even though Alaska produces crude oil. The oil still has to be transported to refineries somewhere and then gasoline has to be distributed from the refineries to the points of sale. In Alaska, ambient conditions tend to drive up the price of everything.
I live in Alaska and work in the oil industry...noteworthy is the fact that 2 of those refineries are actually on the North Slope (oil fields) and are only used to refine oil for the needs of the oil fields, NOT for retail consumption as transportation would be just as cost prohibitive as the current situation in Nome. Alaska is huge, remote, and without a substantial road or rail system to the majority of communities. People are born in those remote towns and villages, you may say that they can choose to leave if its so expensive, but it is just not that simple. It costs money to move here, just like anywhere else, probably more due to the high transportation costs.
da derp derp RMJ dippy derp derp X2
Alaska oil is not used to produce gasoline. A percentage of each barrel is used to produce a number of products. The percentage varies with the quality of the crude. Alaska oil is poor quality.
The crappy part is that ALL production goes into the commodity market..... and the bidding begins. From what I see, we can "drill baby drill" until we hit China... but it will all go into same pool and we will pay the same prices......
And again, the visceral comments about the suffering of our own.... no wonder the Talliwackers and Europeans are laughing at us... We don't even support our own when they are hit by some adversity.....but we will surely send money and aid to, and our celebs will sing for other the poor and suffering in other countries....
There already is a subsidy of at least $1.50/gal if you included the cost of defending "our" crude oil suplies in the mideast. Ironic that the state that produces the most oil has the highest gas prices. So much for supply and demand.
This is not the whole state its just one town. the two most expensive states are California and Hawaii. Hawaii is at 3.90-4 a gallon right now. this town has no refinery so you can have all the oil you want you can't make gas unless you have a refinery. I think they should in crease the gas tax so all of use pays 9 a gallon this would save the environment be reducing our driving we also should tax our licence by almost $1,000 a year and you have to take a driving test every year. We could save the Polar bears
This isn't about the cost per gallon, nor politics, nor subsidies. It's about a single point of failure. Doesn't matter who's in office, or how much it costs per gallon - if the barge sank, blew up, or storms prevented it from arriving - the result is still the same. No gas. They have a single supply line. It failed.
They might want to consider a second supplier, or the means to store more than they will use in a year being the barges come only once every 6 months. Piss poor planning is piss poor planning.
What I don't understandy is why they were unable to reschedule the shipment. It's not like they can control the weather either.
They couldn't reschedule because they are iced-in for the winter...in Nome, once it's iced in, that's it until spring.
It's not ironic at all that crude oil produced at home doesn't benefit us. It's the influence of the market.
We (the USA) are the world's largest consumer of gasoline and other petroleum products. Oil traders (both Wall St. and globally) float oil around the world looking for the highest price they can get. When the Deepwater Horizon blew up (or was blown up, in my view), there was an excess of oil in the UK because nobody there could afford to pay for gas - thus prices there began deflating there, and those oil traders moved the oil to the U.S. to sell it here instead. That's what makes me suspicious that the Deepwater Horizon catastrophe was sabotage, not an accident. The subsequent ban on further oil exploration in the Gulf was even more evidence that someone was trying to pressure the market by throwing a wrench into Gulf oil production.
Even if this country could become oil-independent on our own production alone, the traders would never allow it because it would cause severe downward pressure on the prices they could get for oil produced internationally, since we are such a hub of consumption.That is why Obama will never build the Keystone pipeline (the traders would rather sell it in China and force us to continue buying Saudi oil to continue justifying their high prices to the public, using transportation costs as their excuse), and that is why oil independence will remain a pipe dream for this country as long as the oil interests retain their power in the corrupt Congress and Executive branches of our federal government.
It would be interesting to see some states get together and build the pipeline, and the ensuing tug-of-war between state and federal government for the ability to approve the project. Just a side thought.
Aye, "artificially created scarcity" -- talk about the destructive consequences of materialism. Materialism enslaves people who worship it, and makes people enslave others as well. I wish we could live in a world where people did things purely out of genuine interest and curiosity, rather than fearing for their physical survival or fear of suffering. Like the character in the novel "Catcher in the Rye," Holden Caulfield says, "Everybody [becomes] phoney."
Consider the following:
1. We are living in a poor economy.
2. During the winter, the expensive summer gasoline additives to reduce smog are removed from the gasoline blend.
3. Even with 1 & 2 above we are still paying in excess of $3/gallon.
Here's the warning. When the economy rebounds, during the summer months, don't be surprised to see gasoline in excess of $5/gallon.
My last fill-up was at a BP station and it was $1.99 a gallon if you paid cash.
Central New Jersey.
That said, I too would prefer to have my health care and education subsidized by the government -- and I would not mind if extra money at the gas pump went for that.
I would not want to pay any extra money to subsidize wars, private jets for the rich, or multinational corporations. The first are unnecessary and the other two should not get anything from the taxes I pay!
Let me follow this, a tanker didn't arrive so the existing already delivered supply of gas suddenly skyrockets at the pump to 9$ a gallon, sounds like the citizens of Nome need to start lynching some gas station owners
The owners at the Gas stations have to be able to buy the gas at the new price. Gas stations don't make money selling gas they make it from selling crap in the store. Think about it instead of paying 5.95 a gallon they now have to buy their nest shipment for 9.80 a gallon. so they increase the prices so they can afford the new cost. I thought every one know how gas stations worked by now.
dman?
are you seriously trying to link this to obama lol....?
It IS linked to Obummer. How in the world can you not see that.
LOL seriously? the barge couldnt get into the town. Alaska is an isolated region. it Costs more to gte oil to the remote towns... plain and simple!
There is no way in heck I would pay $9/gallon for gas. At that point I would tell my employer to screw off if they require me to go to the office. I can easily remote in from home, but i they don't like t hat then they can increase my salary by 100%! I don't understand why it's so difficult for employers to allow us to work from home to begin with. I can understand SOME people need an office and/or need to be watched to be sure they do their work, BUT, for me, I would prefer to work from home b/c I get more done w/o all the distractions.
TELECOMMUTING - I have been raising the same point for several years. What we need is a (another) regulation forcing employers to allow telecommuting at least one day a week to at least a small percentage (10%) of their workforce, unless production requires your attendance. As businesses see that telecommuting works (we have some customers who actually only have a virtual office now) they will see the benefits and allow more people to telecommute. SAVES GAS, SAVES MONEY, SAVES THE ENVIRONMENT, SAVES TIME. Few downsides. The only thing you need to do is have HR set up guidelines to monitor the employees productivity. If an employee let's things slide then they lose the privilage of telecommuting - that's enough of an incentive right there.
Ya 9$ gallon of gas is shocking but it will hit that in the lower 48 in a couple years for sure. Then all those who opposed public transport will feel like idiots, and be demanding we build new trains etc. and theyll also blame obama somehow LOL. oil is getting rare and harder to get to, we should have been cutting back along time ago!
$9 per GALLON>>>>!>!!!!!>!?!?!##?!# Here in Nevada it's $3.47 a gallon for unleaded and $3.89 for Diesel, plus an extra 3 cents off per gallon if you are a Safeway member. Oh well, time to bring out the snow shoes...
Central Oregon Coast, as of December 5th, 2011 at 9:40 AM PDT
$3.69
$3.79
$3.89
With the costs of Oil, and heating going up...expect it to go up as well. It's getting cold.
All I have to say is, @!$%# oil Futures, and screw all those that Speculate of it.
Its a simple case of supply and demand. Because of the nature of the environment there, the country requires a high percentage of fuel so that life can be comfortable. Gone are the days when individuals would light wood and coals to keep warm. Therefore as demand increase suppliers are likely to up the price. No matter how high the price is, they will still consume it because it is a necessity. The question is: is the government willing to place a ceiling price on oil to ensure that it does not get any higher or are they willing to subsidize the product for the consumers in Alaska.
ASK PALIN THE BIRD BRAIN for help. She is all for it. The GOP HELPS PEOPLE did you not know that!!! My Gosh they are all SLIME. They probably would charge $15.00.
To pay for their GUSHI SUITS!!! And the hell with you is all you get!!
This is a prelude to what all Americans will see fairly soon!!! And the GOP will do nothing to stop it. JUST BRING IN THE EXECS FOR ANOTHER EXPLANATION. Hi how are you guys and that will be on the TAXPAYERS DIME FOR YOUR VISIT!!!!
WHAT A JOKE they all are!!!!
okay, nationalize all the oil, natural gas any source of energy. slowley pay off the investors of the private companies (hostil takeover). All of a sudden all the 100's of Billions of dollars the private companies, both foreign and domestic, pull in every year goes STRAIGHT into the national education fund which would set the national standards and provide federal funds to achieve and maintain those standards. This is just off the top of my age adled brain with gravity carrying it into my typing fingers really. I think someone way smarter than me should take this ball and run with it!!
Have a great Holiday Season everybody!!
we've been paying over $5/gallon for a very very long time. every time the price of oil goes up we see an increase at the pump within a few days.....when oil falls in price it is months before we see a decrease in the gasoline price at the pump....we have 2 gas stations and they fix the price the same.......the same barge delivers to maui and they pay less there.....welcome to molokai !