Hot off the press !! gas may reach 3.oo a gal this summer!

Discussion in 'Lawn Mowing' started by Green Quality, Feb 23, 2005.

  1. Green Quality

    Green Quality LawnSite Member
    Posts: 176

    what are some of your thoughts on the rise at the gas pump,this Summer?some are calling for a new high $3.00 a gal. could this hurt the green industry,or is this the end to the low baller?! and how are you guy and gal's finding new way's to save at the pump? :gunsfirin payup
     
  2. slt40

    slt40 LawnSite Member
    from nc
    Posts: 30

    I have surcharge note in my annual agreements for excessive fuel prices(5% if regular goes over 2 bucks)
     
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    They have said that for a few years now. One of these times they will be right, but not this year.
     
  4. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    And I quote from exactly one year ago today (2-23-04):

    http://www.lawnsite.com/showthread.php?t=63046&highlight=gas+prices

    It didn't happen last year, it won't happen this year. I predict the fuel prices may rise into the $2.20 range.
     
  5. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    I was looking at the website for the U.S. Department of Energy yesterday on this very subject and their predictions range out fairly long, but they tend to be mum on short-range predictions simply because spot prices aren't attuned to reserves the way long-term pricing is.

    I can see gasoline hitting $3 a gallon this summer, but I really doubt it will. Russia is probably about at capacity, but if Iraqi production ramps up, supplies will be plentiful. Remember that a lot of the bidding at the New York Mercantile Exchange this past year was fueled by events in Iraq and in two other countries experiencing political upheaval, including Venezuela.

    While the president of Venezuela still looks like a populist dictator, the situation there may be stable enough that expectations of stable production seem reasonable. If the situation in Iraq improves, we may find that OPEC cannot maintain prices. I doubt Saudi Arabia wants prices higher than they are now. In the very recent past, they've pressed production higher to stabilize prices. They're not interested in a global recession driven by high energy costs because that just cripples their economy, which is pretty much a one-trick pony.

    In sum, I expect fuel costs this summer to be pretty much where they are now.
     
  6. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    You could always put a couple hundred gallons at your shop to be on the safe side. I was thinking of doing this just for easy access.
     
  7. Charles

    Charles Moderator Staff Member
    Posts: 7,952

    Gas has already gone up .05 to .10 already in the past couple of weeks--just getting ready for summer. Even if it doesnt quite reach 3$ its going to hurt.
    I dont think we will ever go back to the old days of cheap fuel because of government policy and the high demand in China
     
  8. westwind

    westwind LawnSite Senior Member
    Posts: 444

    i also charge a sur-charge if fuel is over 1.99/gal., anytime during that month of service. this is the only way to cover your a**. payup
     
  9. Shawns Lawns

    Shawns Lawns LawnSite Senior Member
    from Maine
    Posts: 638

    is that surcharge on the total cost of mowing or the cost of the fuel used at the customers residents? :waving:
     
  10. kipcom

    kipcom LawnSite Senior Member
    from indiana
    Posts: 352

    Heck....gasoline could go to $4 a gal and I would still make a killing :cool2:

    Sounds like some have cut it too close on the O'l profit margin. :cry:
     

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