India has announced that fuel prices are going to be raised by 10 percent. The state-owned oil companies had no other option but adapt pump prices in response to the increase of crude oil prices in international markets. According to an article in Autoplus, gas stations in New Dehli were selling gasoline at 45.52 rupee and diesel at 31.76 per liter. That's about $1 and $0.75 (U.S.) per liter, respectively. Unlike Europe and the U. S., the price of fuel in India is regulated by the government, although prices differ from state to state.

[Source: Autoplus]

Currently, diesel prices in the U.S. are slightly higher than gasoline. Across the pond, the story has been somewhat different. With the exception of the UK, diesel in Europe has usually been cheaper than gasoline. This was a consequence of European governments' policies on taxing fuels. Trucks and buses run on diesel, whereas cars traditionally ran on gasoline.

Nevertheless, producing diesel is more expensive than producing gasoline. For instance, according to the Spanish Ministry of Energy report on fuel prices, a metric ton of diesel cost about $826 compared to $803 for unleaded during the past month of January.

What Europeans pay at the pump differs a lot depending on the country, and not only because of taxes. Cost price of gasoline is from 47 euro cents/liter in Sweden to 60 euro cents/liter in the Netherlands. The average EU price is about 53 euro cents/liter. In the case of diesel, prices start at 51.7 euro cents/liter in Bulgaria and top 64.2 cents in Italy; the average for the EU is about 60 cents/liter.

Now let's add taxes. The most expensive gasoline in Europe last January was on sale in the Netherlands. The Dutch paid an average of 1.506 EUR/liter compared to 0.917 EUR/liter in Bulgaria. The average was 1.328 EUR/liter. In the case of diesel, Britons paid the most: 1.463 EUR/liter whereas Bulgarians paid 0.924. The average price of diesel in the EU was 1.234 EUR/liter, still cheaper than gasoline but in 14 out of 27 countries, diesel was more expensive than gasoline in January. The signs point toward a continuation of this trend. Spain's diesel became more expensive than gasoline in March, and both France and Italy seem likely to achieve the same price in the near future.

[Source: Spanish Ministry of Energy]

Farmington Hills, MI, 3/10/08

We worry about gasoline prices, but a recent New York Times article reminds us that it could be worse. The article talks to truckers about the increase in diesel prices and how it's impacting them. The Times talked to Ricardo Caraballo, who said that even after spending $500 at the pump, his tank isn't even half full. Caraballo also said that not too long ago, "$500 would have kept me rolling for two weeks. ... Now, I'll be lucky to make it three days." Diesel is impacted more by global demand, the Times explains, and international demand is high. Diesel prices set a record recently of $3.83 a gallon. Trucking companies are already starting to fail and Chad Beachler, co-owner of Beachler Trucking, puts it bluntly: the price of diesel, he said, is "killing us."

[Source: New York Times]

On a recent episode of the Daily Show, the spike and price of a barrel of oil was explained (see videos below the fold). The comedy news show's explanation includes $15 of the $104 for a barrel of oil going towards trying to convince the public that the oil companies are not raping the environment. Another $25 goes towards blackening the oil because oil actually comes out of the ground rainbow colored. Who knew? The Daily Show also took a shot at President Bush for his press conference where he said he was unaware of the predictions that gas prices could reach $4 a gallon and for his speech at the WIRC.

[Source: Daily Show]

Are high gas prices having an impact on EV sales? Yep.

Washington state news station KING5 did a report on an electric car dealership's recent sales increase. Jim Johnson of MC Electric Cars has sold more electric cars in the last month than the last three years combined. With a barrel of oil trading around $105, NEV (neighborhood electric cars) sales probably won't decrease even though NEVs have a top speed of 35, a range of around 50 miles or so and no air bags. The amazing cost savings of a penny a mile (versus fifty cents a mile for fossil fuels, according to Jim in the video) seems to have reached a tipping point with the public. The news report also says electric cars with air bags will be available the middle of this year.

[Source: KING5]

Two days ago, we told you President Bush said he was unaware some analysts were predicting $4 for a gallon of gas in the U.S.. The day before Bush made those remarks, White House press secretary Dana Perino was actually asked about gas prices and she said "we're mindful of it." Yesterday, when asked if Bush was "joking around" when he said he did not know their was talk of $4 gas, the White House said that "the President's point was that neither his advisors nor Energy Department analysts are at this point forecasting $4-a-gallon gasoline."

But $4.00 gas is actually here today is some parts of the country. What does the White House have to say to that? "I think that the national average, as of earlier this week, was $3.15, according to the Energy Department and other surveys" says the White House. The EIA actually says $3.13 and "other surveys" must mean things like the AAA survey, which says $3.16. So, the White House uses multiple surveys for the average price of gas but only use a single, government source for predicting gas prices? That makes perfect sense because the EIA has been so incredibly accurate and its predictions have never changed (/sarcasm).

The price of a barrel of oil went over $103 recently and it's reasonable to think that, as a former oil man, the president knows $4 for a gallon of gas is very possible, even if he didn't see the predictions. Perhaps he was trying to defuse what might have been seen as an endorsement of the $4 prediction in the question, a number the EIA has not officially predicted. However, his appearing to have "no clue" on what analysts are predicting, as the CNN video below the fold says, is more disconcerting to some than the actual $4 predictions themselves.

[Source: The White House]

This morning in a press conference, President Bush was asked about statements he made on tax breaks for oil companies (see video below the fold). Yesterday, in support of the Energy tax bill (which the President threatened veto), Rep. Steny Hoyer quoted Bush as having said that oil companies do not need incentives when oil is at $55 a barrel (again, see video below). Bush says he talked about taking back "some" tax breaks from oil companies, or at least "certain aspects."

Did Rep. Hoyer misquote The President? Here is exactly what he said in 2005: "And so one of the initiatives that I will push, again, is to get an energy bill out. I will tell you with $55 oil we don't need incentives to oil and gas companies to explore. There are plenty of incentives. What we need is to put a strategy in place that will help this country over time become less dependent. It's really important. It's an important part of our economic security, and it's an important part of our national security."

President Bush also took a few questions on gas prices and said he was unaware analysts were predicting $4 for a gallon of gas (video after the jump). W must not be a regular AutoblogGreen reader, because we first wrote about predictions of $4 for a gallon for gas last October. We wonder if the Commander-in-Chief knows that oil hit a new high of $102.74/barrel today, which tops the inflation-adjusted high of $102.53? Dana Perino spin-control mode in 3...2...1...

[Source: White House, C-SPAN]

A barrel of oil just hit $100.30 high today and while it might go higher or lower for the rest of the day, it seems trading over $100 is becoming normal. Why is this important? In the U.S., the price of gasoline is over $3 a gallon again, according to the EIA. With a barrel of oil reaching new heights, pump prices probably aren't headed down anytime soon.

UPDATE: Oil closed at $100.74 (see above).

[Sources: Reuters, CNBC]

The closing price for a barrel of oil today was $100.01 and the intra-day high was $100.10. These prices are the highest a barrel of oil has ever traded or closed. No single news event brought the price of oil to these new highs but there are concerns OPEC will tighten supplies next month. We will have more as this story develops.

Related:

• BREAKING: Oil hits $100 a barrel
• Who's responsible for $100 barrels of oil? One guy "seeking fame"

[Source: AOL Money and Finance]

Former fed chair Alan Greenspan says the electric car is the best solution to high gas prices and we need to find ways to make more of them. Speaking at Cambridge Energy Research Associates (CERA)'s CERAWeek 2008, Greenspan said we must "find a way to move cars to electric" because using electric cars "will have a large impact on world petroleum demand." Who's gonna argue with Alan Greenspan?

Related:

• Greenspan on ethanol: it'll play a limited role
• Greenspan says (basically) that with higher MPG cars, Iraq war could have been avoided
• High-gas prices not significant yet, states Greenspan

[Source: News & Observer, Raging Bull via Treehugger]

Oil is starting 2008 with a bang: Today, for first time ever, a barrel of crude oil traded for $100. Oil has traded close to $100 for months but there is just something about breaking the $100 barrier. "This is an important psychological number" said Rick Mueller, an analyst with Energy Security Analysis Inc. Emil Pena director of the Energy and Environmental Systems Institute at Rice University in Houston says, "These prices are here to stay. ... We have to come to grips with these high prices. I hope this will lead to us becoming more efficient and increase our energy education." The reasons are the same as always - high demand and low supplies - but the only thing I am really concerned about is how much gas will cost in 2008?

[Source: Bloomberg]

Oil traded at over $90 Friday and the market took a tumble. It's gone "down" to the mid- and upper-80s since then. When will these prices start to effect the cost of gas at the pump? We can expect 20 more cents to the price of a gallon by mid- to late-November says Sarah Emerson, director of petroleum at Energy Security Analysis Inc. Stephen Schork, principal of The Schork Report, says "$4 gasoline is a near certainty in New York and many other areas of the country in the spring if crude prices stay at current levels." For all those people that like to say, well if you adjust for inflation... guess what? We are actually trading above those prices right now. According to Newsday, the price of a barrel of oil "surpassed the inflation-adjusted record for crude used in the United States, set in March 1981. The actual price then was $34.78 a barrel but the U.S. Department of Energy says that equates to $84.73 in today's dollars." Thanks for bumming me out, Newsday.

[Source: Newsday]

The latest news from Turkey is that the country might go to war with Kurdish separatist guerrillas in Northern Iraq. That makes you nervous? Well, it certainly made the market nervous and so we just saw the market's blood pressure jump up to $88.20 for the price of crude oil today, a new all-time high (not adjusted for inflation). What does this mean for gas prices at the pump? Dust off your bike!

[Source: CNBC, MarketWatch]

The price of a barrel of crude is making record highs, ending the day yesterday at $83.32. In other news only connected if you were in the smoky back room, Dubai announced a deal to become the biggest stake holder in the NASDAQ. Senator Schumer is concerned but other than him, no one seems to care. The president was asked about it and said "we're going to take a good look at it." Sadly, even if the conspiracy does work, crude oil is traded on the NYSE. So prices at the pump should go up soon. Even though it has been going down recently. Gas is made of crude, so it has to go up at some point. Does anyone understand how gas prices work?

[Source: CNN and tipster Henry]

The price of a barrel of oil hit a record intra-day trading high of $80.05. It hit $80.18 in intra-day trading on Globex. That's more than a dollar higher than the old record of $78.77 set August 1. The price of oil is up on worries of supply shortages after a Energy Information Administration report said crude stocks dropped 7.1 M barrels when the market expected a drop of 2.1 M barrels. However, EIA does say crude inventories is above the average for this time of year. Also, OPEC said they would raise production by 500,000 barrels.

[Source: CNN]