It looks like you're using an Ad Blocker.

Please white-list or disable in your ad-blocking tool.

Thank you.


Some features of ATS will be disabled while you continue to use an ad-blocker.


New Years Day and nobody noticed

page: 1

log in


posted on Jan, 15 2006 @ 05:51 AM
Yes, I think everybody was out too late partying that night.

Well, ... not everybody it seems.

I did a little driving and here is what I noticed.

I paid less than 2$ per gallon typically, all of new years eve. This average spanning several states.
New years day I did some more driving.
Prices were considerably higher. As much as 40 cents higher on occasion.

I gave that alot of thought. Did a little research.

What I found is that on January first a few states tax-per-gallon base was re-adjusted as the tax has variable components that are based on historical averages. Not all states mind you, every state has their own rates and methods.

It was interesting to note though a couple of things;

1 - Gas prices went up across the board within one or two days of each other as of January 1st. This increase was typically 20 to 30 cents per gallon.

2 - Some states had their tax valuation rate go up, some by as much as 15 percent, while others did not make any changes.

In one example I can show is one state had a significant increase in the tax rate per gallon on January 1st, pushing retail prices to over $2.29 per gallon from a December 31st retail price per gallon of $1.98

OK, no biggie,...we voted for em, now we have to pay the tax man.

But notice this though?..

Same state price per gallon of post-increase $2.29, is still considerably less of an increase when compared to states averages and increases, that were not affected by a January 1st state tax hike. That how can $2.29 in one state that represents the December 31st price + the January 1st increase in the tax applied to a gallon of gas increase (and seemingly thats all the difference),....and when compared to a neighboring or near neighboring state that had no tax rate or valuation increase, reflect the same January 1st retail price increase averages throughout the whole of the US.


1 - If one near state says their wholesale costs went up due to whatever,.. it goes to reason that wholesale cost increase would be affecting all states. Yet there is at least one state who's current average price of gas is a little less (minus tax increase applied) than it was just prior late December.

2 - And yet again, there are states reflecting significant increases in retail price per gallon in the same exact time frame, that had no January 1st tax rate or valuation increases.

One must think the latter was due to market forces that affect prices every day.
One must also note the prior, actually reflects a decrease in retail price for gas, after exclusion of tax increases applied.

One must wonder why the vast differences in increase of the retail price for gas on the first week of January, and why the sudden vastly diverging number of reasons for it to be explained away.

[edit on 15-1-2006 by smirkley]


log in