Well we are seeing some record prices at the pump again, we knew we would after last year's price spikes. And this year it is merely the same only worse as the World demand for oil increases with China and India needing more and more. Also the 2006 Atlantic Tropical Hurricane is almost here and expected to be a biggie too. Indeed Iran and their promises to start a war using nuclear weapons does not help any, as commodity brokers run prices up on that notable information.Some blame the oil companies who too have record profits and some blame the government who have windfall tax revenues from every gallon purchased as the prices goes up so too does their incomes. Seems like just yesterday we were at high oil prices in Summer of 2005.
But this should not surprise anyone; let's take a look at 2000-2001, that was not so awfully long ago either.In 2000 the Diesel fuel Sales and distributors were making insanely high margins, or at least a lot more than normal in 2006 they are doing good but the oil companies themselves are doing great. In 2001 we noticed that where most of the people live such, as near water (great lakes and Ocean) that is where the fuel is more expensive? This caused consumers to be damaged in that the cost of everything goes up.
In 2000 trucking companies all started raising prices 5%. And then another increase, sound familiar, as that is what is happening right now. FedEx first raising 5.8% followed by all the other trucking companies and more to be announced next week.
The railroad industry is fairing only a little better able to import their own fuel cars to the locations they need to fill at and buy at a bulk price where it is cheaper. In 2000 after huge consolidations in the rail industry with Canadian Rail Companies; we saw problems there too. Especially when the Railroads were shut down due to freezing of switchers and safety devices needed for operations. Well here we are in 2006 and "piggy back" style freight is really making its mark on the rail road, yet we also see huge issues full capacity and weather coming out of winter with the storms and into Hurricane Season in the South and East Coast. Seems like it is always something.
Let's face it these high Diesel Fuel Prices are merely history repeats and reflections of the way it use to be and is today. May as well get use to it, because we have not seen anything yet. $4.00 per gallon gas and diesel are headed our way soon.
Consider this in 2006.."Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/.
By: Lance Winslow