Rising gasolene prices

[jacon12]

I've owned a Chevy full sized pickup for 10 years. I think its mileage is around 15 mpg, maybe a little less. I recently bought an '05 Honda Civic that is 'touted' to get 38 mpg but really gets around 29 to 30 (country and city average). I hung onto the truck but it stays parked about 95% of the time now. With a 24 gallon tank it was taking roughly $50 to $60 U.S. to fill it up. Evidently, a year from now it will take a lot more than that.
I've read several news articles that say the China and India have a lot to do with the rising price of oil, especially China now that its economy is getting hot. Most of you U.S. citizens have heard that we haven't built a new oil refinery in decades, that the ones we have are running at full speed to keep up with demand. We pass environmental laws that dictate 'special' blends for certain areas, which increases the price. I would imagine that most of us, in the U.S., haven't cut back on our driving very much, maybe even driving more than last year. Thus the demand keeps going up and up for a product that, we are told, is in limited supply.... and we all know what that does to the price. Where it will all end I have no idea.
Oh... the quetion was about trips to the hobby shop. Mine is about 11 miles away, a 22 mile round trip.. so right now it is costing me about $2 to go there and back. I don't jump in the car and run up there for a pair of #5 Kaydee couplers anymore. I try to plan the trips better. What I'll do when gas hits $5 a gallon, I'm not sure.
Jarrell

[Anonymous]

Like a few other guys said -

I htink people will plan their trips better - My truck gets 10 mpg, wife's van gets 21, so neither of us get great mileage. But what we do is if we need to run down to Walmart or the grocery or something, unless it is an emergency, we will wait to go to the one store until we can plan it into a "trip" where we go and run all of the errands at the same time. The same holds true for the LHS visits. I have found that I have actually spent more money than I had planned to at the LHS since gas prices went so high, as I tend to spend more time there to make sure I have everything I need before going back home...

[peterjenkinson1956]

fuel in australia is currently US $3.60 x gallon and probably around $4.20 -$4.70 in the country... ...you fellas are very lucky my local hobby shop is 11 X HOUR'S drive away.... MACKAY to BRISBANE.... I dont feel too bad about paying for the fuel..i travel to asia a couple of times a year on holidays and in Thailand the fuel has gone up 50% and the poor buggers on the farms are having a very bad time... thanks peter

[claycts]

We are EATING the fuel surcharge on teh manufacturing side and passing it on in the shipping. We let FED EX etc quote a number and use that.
In My area the LHS is high anyway, there is only one in the area (26 miles) the other is 165 miles (dinner and a hobby shop trip).
The fuel prices are running due to FUTURES TRADING which my advisor keeps pushing me to.
In our latest run between S.C. and Florida it took $135.00 in fuel for the truck and car carrier.
The fact of the matter is that as long as we pay the price goes up, stop driving and the price goes down (yea, right we are going to walk)
I feel bad for fixed income and kids that can not afford to blow $35.00 in fuell to go to the LHS.
The answer to this is teh $64,000.00 question.
Some of my toys run only on racing fuel at $7.50 a gallon which is my choice, but the diesel is now at $2.75 in my area and at 27 mpg is the normal car we use.
Things could be worse, like NO GAS.

[SpaceMouse]

QUOTE: Originally posted by Fergmiester

This will cause a rise in inflation and I think we are looking down the barrel of the "Big R", which in turn will cause a domino effect. Leisure activities are always the first to get hit.

Hold on we're in for a rough ride and one that will last a while. Though prices might normalize the Oil companies, once they realize people can't reduce consumption will keep the price up.

Fergie

There is the other side of the coin as well. Oil companies have been keeping the price unrealistically down for fear that some bright engineer or entrepreneur will develop a cost effective alternative for the internal combustion engine. The higher gas prices go, the more likely this will occur as the potential market increases.

[Fergmiester]

This will cause a rise in inflation and I think we are looking down the barrel of the "Big R", which in turn will cause a domino effect. Leisure activities are always the first to get hit.

Hold on we're in for a rough ride and one that will last a while. Though prices might normalize the Oil companies, once they realize people can't reduce consumption will keep the price up.

Fergie

[Anonymous]

I'm not sure that the actual trips to the LHS will be a problem as my LHS is very close and on a route I travel daily for work. The issue here in Toronto is that the cost of gas is currently 99.9 cents a litre (4 litres in a gallon...you do the math...I'm to lazy). It costs me on average $50CDN every 3 days to cover my gas costs for commuting to work. This cost is cutting into my disposable income and that WILL cut into how much I spend on my hobbies.

Trevor [:)]

[SpaceMouse]

If there is an effect, it will be, like Lothar says, in the shipping. Everything comes by truck these days and a 25% increase in fuel will trickle down.

Right now we are feeling a crunch becasue the incresase prices are in our face, and true some people who drive a long way to work are getting slammed. But this little hike will be nothing compared to what is coming next month. Two laws are going into effect. One will prohibit bankrupcies for people over a certain amount and the other will double minnimum credit card payments.

That will hurt most people far more than gas prices.

[AntonioFP45]

Part of life.

Most of our model railroad products are made from plastic. In essence: PETROLEUM.

It's realistic to expect price increases. The costs of manufacturing and shipping by air or truck are obvious.

Best thing to do is to budget and look for decent deals. What makes me feel sad is the impact on LHS stores. We need to support them, but when prices start climbing some customers tend to turn towards the internet in search of deals.

[Anonymous]

I think it will trickle down to all aspects, it will cost more to drive to the LHS cutting into disposable cash, oil is used to make plastics, so prices will rise on creating our models and rolling stock and engines, shippers will tack on a fuel surcharge for the rising fuel costs, it will cost the LHS more to receive product, and pay the electric bill, there by cutting out any profit margin we have. Also we will see firms send more over seas to help keep prices in line, again cutting jobs we would have to buy our stuff, or possibly lower our wages to stay globally competative so I think it will effect us all in one way or another if not all the way.

[Jacktal]

Hobby wise...yes and no I'd say...personnally,my LHS is close by so it will have no effect at all on my visits there.However,the fuel price hike will eventually reflect in prices so yes,it will affect me although probably lightly.

On the other hand,I'm planning to trade my car for a slightly hotter one by next spring and may have to reconsider this option if,as I heard of,the prices of fuel are going to skyrocket in the next months.I'm lucky as I don't have to drive much (30 Kms a day) so fuel price hikes don't hurt me too bad since I drive a compact car, which I may have to keep for another few years.

[loathar]

I think the big price hike will be in S&H. I'm sure some companies will use it as an excuse to raise prices beyond a reasonable level.

[grayfox1119]

One of my favorite MRR stores is a 60 mile round tripper. With an SUV that gets no better than 21 mpg on the highway, and being retired on limited income, I must now cut back on my trips. What I will now do is spend more time there when I do go, and plan my trip carefully to purchase all that I may need during a given time period. My fear is that many hobby stores that I have visited this year, are hanging on by a thread financially. This latest rise in gas prices is going to push some of these shops out of business, there is no doubt about it, as their profit margin is so thin now. And, it is not just the erosion of customer base, all their operating expenses are taking a big hit, like heating and A/C costs, RE Taxes, costs of delivery, etc. If they raise their prices, the customers all complain, and many run off to the internet further eroding the customer base, causing the cost of operation to rise higher. The spiral upwards just does not stop. Where do think this will end up guys?

[grayfox1119]

With gas prices rising well beyond the inflation level, how do you feel this will effect the LHS's? Will customers cut back on trips to these stores? Will the LHS have to raise their costs to cover their rising fuel bills, which in turn may move more business to the internet guys? For those who live many miles from their LHS's, a tank of gas is no longer $10, it is $20-$30 or more an d rising.