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| Monday, April 21, 2008 |
| Gas prices are the highest they have ever been |
The USA Today story reports: Gas prices are the highest they have ever been The average price for regular gasoline across the USA was a record $3.508 a gallon Monday, eclipsing the inflation-adjusted peak of $3.413 set in March 1981, when the average was $1.417, according to the U.S. Energy Information Administration.
Separately, AAA and the Oil Price Information Service reported a U.S. average of $3.503 Monday, up 1.2 cents overnight and first time above $3.50.
The two surveys emphasize what Americans already know: However it's measured, gasoline is more expensive than it's ever been. That hurts.
Gasoline sales have fallen 2% to 11% every month since December at 13 gasoline retailers scattered across the USA and who are not direct competitors, according to Jay Ricker, member of a study group that includes the 13. He's president of Ricker Oil, which runs 30 Marathon and BP stations in Indiana.
"People aren't getting used to these prices," he says. "I'm hearing more comments, people saying, 'I need to get a more fuel-efficient car next time.' "
"People are being very prudent about their gasoline dollars at these record prices; combining trips, driving less."
Expect no relief. EIA's predicting regional averages as high as $4 this spring. And the price of oil, which EIA says accounts for about 72% of the price of gasoline, continues to zoom. It closed Nymex trading Monday at a record $117.48, up 79 cents from Friday. "I need to get a more fuel-efficient car next time." indeed. If you are thinking of switching to a more fuel-efficient vehicle, check out this handy fuel calculator to compare what it will cost in gas to run one car vr. another. It can be an eye-opening exercise. |
| posted by Boston Gal @ 10:28 PM *
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| 4 Comments: |
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For years the government has tried to encourage mass transit, carpooling, etc.. to no avail.
Now the price of gas goes up, and demand goes down. I guess the market does work after all. Just imagine what would happen to our dependence on foreign oil if the price increased to $4, $5, or even $10 per gallon?
Alternative energy sources and fuel efficient vehicles would flourish.
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"I need to get a more fuel-efficient car next time." indeed."
Actually, it's time to buy a slightly used SUV for 50% off and wait for gas prices to drop back to $2 per gallon, which they will after this particularly nasty recession we're about to experience does its thing worldwide.
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There was a story this morning on NPR about a family who sold their second car for financial reasons and started biking everywhere. They were surprised at how much they enjoyed it, and said they would keep doing it for that reason alone, not to mention all the money they were saving by
biking instead of driving to work.
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For years the government has tried to encourage mass transit, carpooling, etc.. to no avail.
Now the price of gas goes up, and demand goes down. I guess the market does work after all. Just imagine what would happen to our dependence on foreign oil if the price increased to $4, $5, or even $10 per gallon?
Alternative energy sources and fuel efficient vehicles would flourish.