Why are gas prices so high?

People tend to blame to their choice of villain when complaining about the cost of gasoline these days, but there is more than one reason for achingly high prices.

For example, gasoline inventory is lower than normal.  According to the EPA, during 12 consecutive weeks in February, March, and April, total U.S. gasoline inventories dropped by 15 percent.  This is the sharpest decline over  this ascribed time in recorded history. Also, lower import levels, refinery outages due to maintenance, and unplanned refinery incidents have contributed to a slowdown in supply growth. And yet, gas demand continues to rise despite prices well over $3.00 a gallon in many regions.

There are also global factors, such as increased demand for fuel by developing countries--including India and China--as well as tensions in the Persian Gulf, from where a large quantity of oil is sourced.

So, what does this mean for drivers this summer travel season? Prices are expected to remain high throughout the summer, because inventories are likely to remain low. As gasoline imports increase, domestic refineries come back into production, and as supplies improve, we could see prices come back down... possibly after the summer travel season.  In the meantime, see our tips for saving fuel and our guide to fuel economy for information on fuel-efficient vehicles and alternative fuels. Also, check out the U.S. weekly gas prices in your region.

--Liza Barth

Comments

[Jeff Bartlett - Consumer Reports]

We have been watching the scooter-related comments with great interest. Rest assured, we have been looking closely at the demand for two-wheeled vehicle testing and coverage, and we will post a blog on the topic in the near future.

[Cissy]

OK - here is a scooter review from someone who may be an even pickier consumer than Consumer Reports!

This doesn't have a lot of mechanical information but it's based on rider experience and backed up by the anecdotes and experiences of friends who also ride.

Sparing you guys a lot of details, suffice it to say that I would look long and hard at Kymco scooters. I am just a regular person and not a Kymco dealer.

My first scooter was a Buddy 125 (Genuine Scooter Company) which had 10" tires. One day I was riding on a highway in something of a gusty wind and I found that each puff of wind had me twitching all over the road. I felt like I was in more danger than I should've been.

After that hair-raising ride I started shopping again, looking first at Vespas. I found that for the money, Kymcos are a way better deal for what I feel is a better scooter in the Kymco. So, crossing Vespa off my list, I went to the scooter shop and traded the Buddy in on the Kymco, which has 16" wheels. I rode it home in the same wind and there was no comparison...safe, steady, inspiring a confidence that the Buddy could not. And, it seems that most scooters' wheels are fairly small which makes the scooter more maneuverable but also, less steady.

My local Kymco dealer is a British fellow who has been in the "scoot" business for many many years. He swears by Kymco, which are made in Taiwan. Their fit and finish are excellent, they have a 2-year warranty and are a blast to ride. For me it was a no-brainer.

I also had some issues with the Buddy, such as a dead battery and some cosmetic problems that were unacceptable.

The Kymco People 150 retails for about $3200; the Vespa 150 with smaller wheels is $4,399. No contest.

Good luck to all!

[Ken]

I've been a member of Consumer Reports for years and did expect a report on Scooters somewhere on the website, but alas, nothing. So Jeff, we'll all be awaiting your new section on Scooters.

Meanwhile - Last week I went to a local dealer who carried the Chinese made Scooters. The salesman and the floor told that they were selling a lot of them. They had one I particularly liked, but since I knew nothing about it, and it was Friday late afternoon, I asked the rep is he could put a "hold" on it until Monday morning - time enough for me to check on insurance costs and all. He said he'd be glad to and we shook hands on it.

Well, that evening I did web searches and couldn't find that make/model anywhere. Seems like the Chinese manufacturers may be changing names for each dealer/distributor - who knows? Then Saturday afternoon I stopped in with my buddy to speak with the sales rep - he was busy but another sales rep came up to me - I asked about the one I put on hold - where was it? She told me it had been sold! I told this rep to tell my rep that I had been there - end of story - he never called me back Saturday or on Monday. I guess that was good because I searched for non-Chinese models.

Found a dealer north of me in Pennsylvania - they carried Vespa, Suzuki and Yamaha. They had a Yamaha I was interested in and a Vespa I was interested in - and of course this rep said they've been carrying the Vespas for a few months now, but he didn't really know anything about the model I was interested in getting. They had no literature, no nothing - he searched everywhere - then I suggested he log onto the Internet and go to the Vespa site - he did but couldn't get it to print.

Now that I'm ready to buy I had asked the sales rep what the best price would be, not the MSRP price. He said I had to speak with the manager -Why? At this dealer you have to jump through the hoops with the manager, just like doing when buying a car. So, I've been looking for where I can find the dealer invoice price on these Scooters. No luck so far.

So I hope you can get a Scooter review section going - something with meat that we can use - ratings - and how and were we can get dealer invoice prices so we get a little bit of leverage when working out the deal with the Sales Manager.

sorry for the long post everyone -

Ken

[Liza Barth]

Due to the overwhelming interest in motorcycles/scooters in our blog comments, we have created a discussion forum where you can continue to talk about buying a bike/scooter, mpg, safety, etc. Check out our new forum here: http://discussions.consumerreports.org/n/pfx/forum.aspx?tsn=1&nav=messages&webtag=cr-0609fcaethan&tid=109

[Christy]

Does Consumer Reports have any motor Scooter Reviews. That would be awesome. =)

[Lizzie]

I just purchased the Honda Jazz (Metropolitan in US) 49 cc scooter and I love it. The quality is great - what can I say - it's a Honda.

[Jeff Bartlett - Consumer Reports]

As promised, we have posted a blog on motorcycles and scooters:
"Motorists move to scooters and motorcycles to save"
http://blogs.consumerreports.org/cars/2008/06/motor-scooters.html

Also, we have more motorcycle/scooter coverage planned for the blog. The latest posts can be found at any time with the new blog category: motorcycles & scooters.
http://blogs.consumerreports.org/cars/motorcycles_scooters/index.html

[Robert Mezzio]

In April of 2006, I bought a six month old (Nov. 2005) yellow Honda Metropolitan on ebay for $1,300. It had 2,424 miles on it. Today, it turned over 4,000 miles and all I've spent is a FEW dollars on gas and registration. NO INSURANCE, special endorsements, just gas. It starts and runs PERFECT every time I get on it. I put air in the tires once in Feb. of this year. I live on an island with a speed limit of 25-35 MPG and I get over 100+ MPG.
In September of 2006, I replaced my 1994 Chevy Astro with a 2006 Toyota Prius. I was paying $300+ a month (based on $3.00 gallon gas prices). It went down less than $60 a month. This savings pays for half of my car note. Now that gas prices have risen $1.00+ I have really maximized on these savings. My lifetime gas mileage for the Prius is 58.8 MPG.

[corynne]

gas prices seriosuly are getting way too high. i carpool with my friends a lot more now and try not to drive as much as i can, i just cant afford it that much anymore

[vince]

What the f--- is going on, the price per barrel has dropped from 147.27 at it's high in July and down today as low as 103.81 a barrel which is a 30% drop, yet gas at the pump is still in the high 3's, gas pump prices should be down 30% also at around 2.90 p/gal...I knew this would happen raise the gas over $4.00 p/gal and they think we are ok when it drops back down to under $4.00 p/gal, they try and makes us think we are getting a break, well people we are getting a break right up our butts...

Very frustrated....

[vince]

Here I am again, over-night the gas prices went up over 60 cents per/gal to 4.19 a gallon here in Michigan, other places are over 5.00 p/gal..I understand Ike is causing the price increase, yeh-right!

I am a "Specualtor" and I am speculating that next year the price of gas is going to go up to around 6.00 p/gal because there are more jet skiers in the gulf causing waves and making our off-shore refineries shake too much....What a joke!

Frustrated speculator....

[Bill]

Posted by: L. Ruede | Jun 3, 2008 7:26:10 PM

I would like to see reviews asap on motor scooters and also electric or "power assisted" bicycles (both electric and "hybrid"--allowing some pedaling).

Well CU, where's the review?

[Jeff Bartlett - Consumer Reports]

We are still developing out test-based buying advice. We have just added a couple entry-level bikes to add to our two-wheel fleet. I can't commit to a timeline, but we are well into this project and expect to blog on it in the weeks ahead.