Are today's gas prices really making anyone go broke?

Personal Research | unpublished | Don Simmons

[Don Simmons]

OK - so now the average price of a gallon of gas is up to $1.75. If you pay attention to our beloved "media", you'd think we were all on the brink of poverty because of higher prices at the pump.

However, if you break it down, the fact is that the cost is probably very, VERY absorbable by average Joe American.

Before anyone even thinks about it - yes...I know there are people who are crunched a lot more than others. There are always exceptions - and the comparison I'm about to make can be refuted and disproven with individual examples also.

Don't bother - please take this at face value. It is a comparison -- it's not a rule of law.

OK, let's say you average driving 1,500 miles monthly. That's more than most people and less than some.

Now, let's say your car averages 20 miles per gallon. Again, more than some and less than others.

1,500 miles divided by 20 mpg equals 75 gallons.

So, on average, you use 75 gallons a month. Fair?

OK...

If the price of a gallon were back down to around $1.50, (Yeah, yeah - it should be lower. blah blah blah...it ain't, so deal with it!), I doubt we'd be hearing all this pissing, moaning and whining.

ANYWAY....that's 25 cents less per gallon multiplied by that 75 gallons.

75 X .25 = 18.75

You save $18.75 a month.

For most people -- BIG FRIGGIN' DEAL!!!!!

If that $18.75 breaks your bank, the price of gas is the least of your worries, I say.

It might not be a bad idea for you to.......(are you ready for this?).......CUT BACK!!!!!

LIVE WITHIN YOUR MEANS!!!!! You probably spend twice that $18.75 - or more - every month swilling cheap beer.

Lord have mercy on my hard, callous soul for telling it like it is.

Am I alone in my thinking here, or can I get an "Amen"?

[breakem]

I sincerely hope not. Haven't seen full quarterly reports yet.

[HungarianGypsy]

$1.75 was about the price in Arizona late last summer. Then the pipeline broke and the price went up when everyone panicked.
Every year it's a news story about the gas prices going up. Every year, it's about the same time. Every year AAA says they don't see an end in sight. Every year the prices eventually go down. Not as much as we'd like, but they do go down. Once again, a big think you and "salute" to the environmentalists.

[Blood of Tyrants]

Exactly. Today Americans have more disposable income than ever. However, the big rigs on the road take a much bigger hit. An average 18 wheeler gets only about 5 mpg. At $1.25/gal that makes their fuel operating cost $0.25/mile. Taise the price of diesel up to $2.00/gal and suddenly their fuel cost goes to $0.40/mile. That is a BIG difference.

[HungarianGypsy]

$1.75 was about the price in Arizona late last summer. Then the pipeline broke and the price went up when everyone panicked.
Every year it's a news story about the gas prices going up. Every year, it's about the same time. Every year AAA says they don't see an end in sight. Every year the prices eventually go down. Not as much as we'd like, but they do go down. Once again, a big thank you and "salute" to the environmentalists.

[luckystarmom]

It's not hurting us, and gas is $2.10/gallon here.

My husband bought a Prius a few years ago. He goes about 55/60 miles on a gallon of gas. He drives a lot, and I don't.

[judgeandjury]

Just because I could afford to pay $10 for a loaf of bread doesn't mean that I want to pay $10 for a loaf of bread. The same reasoning applies to the price of gasoline.

[Christopher Dion]

Don't forget that the majority of the gas price is:
a) taxes
b) regulations

In respect to b, keep in mind that the Clinton Administration environuts balkanized the U.S. They mandated different 'environmental' gas formulations for different areas. So, a gas shortage in, say, Chicago, can no longer be met by simply shifting supply from, say, Texas. Texas gasoline doesn't meet Chicago standards. Refineries need time to shift production to meet different standards.

Also, the environuts have done to the oil industry what they did to the nuclear power industry. They have stopped all building of new oil refineries since 1976. In 1976, the U.S. had 300 oil refineries. I think we have half that number today. (Would somebody check me on that?)

The result is that even with more oil supply, we couldn't refine it fast enough to meet demand. In fact, our refining capacity has dropped since 1976 while demand has sky-rocketed. So our refineries are operating at peak capacity... then...

Explosions rattle BP refinery in Texas City
March 31, 2004, 7:54PM
By KEVIN MORAN and MIKE GLENN
Copyright 2004 Houston Chronicle

Effectively shutting down one of our few refineries. No wonder gas prices fluctuate so wildly.

[Dutch Boy]

No worries about gas prices. IMHO they will be in the $1.50 range by the end of May. Everytime OPEC attempts to raise prices by cutting production another oil nation attempts to make a fortune when the price is high and the market gets flooded. Prices drop like a stone every time. Never underesimate one oil nation's willingness to screw another.

[freethistle]

Sure no big deal. The baby doesn't need to eat so much,in fact he has really been getting too healthy ; and the oil company execs like to play golf and make great investments in China-why not make them happy; and we're just wimpy Americans citizens so let's not stand up for our families.

In fact let's take an extra $18 dollars and give it to the government-no big deal.

[kylaka]

Try doing the math for a boat that burns 26 gallons per hour.
The increase adds up fast.

[Will_Zurmacht]

I honestly don't think much about gas prices...sad to say.
My grandfather would drive 20 miles for cheap gas, then burn most of it up looking for EVEN CHEAPER gas.
It was his hobby in a way.
Seemed futile, but kept the rascal busy I guess..

But I drive an older, well maintained car, with a klunker pickup for special projects only. I don't use much gas, and when I need gas, I need gas, simply really.

I saw a lady today at breakfast today. She had a brand new Hummer H2,(White and chrome-her hubby owns a local car lot.)

I thought, a little overkill for the Burger King, but it's your money, enjoy it while you can.

The funny thing was her kid. He wanted to get out of the passenger seat of new car, but the little tyke was afraid to jump down from the lifted Hummer onto the parking lot...."I'm scared...Too high"

I figured it was only about 3-4 feet, he could roll on landing....kids are tough.

But no, mommy came around to get him...wimps

[RightWingMama]

My husband drives a 3/4 ton truck and it is now costing him $65.00 to fill up probably every 10 days or so.

[SpottedBeaver]

You probably spend twice that $18.75 - or more - every month swilling cheap beer.

Actually... I spend that much every week swilling expensive beer.

[jslade]

Idiot. Where do you think that profit goes. To stockholders. Who then spend it on milk, houses, cars, etc. Corporations are owned by the stockholders. There is where the money goes, other than retained earings for exploration and more production. Take economic 101.

[breakem]

A$%hole! When the price goes up 60 cents in 75 days and you make the thired highest profit of all-time, I don't want to hear any crap about your obligation to stockholders. I want to hear why you think I'd every buy from you again. Oh I forgot, I don't have an option.

[TC Rider]

Ponder this: The left has cried for years that Bush was in the back pocket of BIG OIL. If true, why would they jack up prices now to jeopardize his re-election. If true, wouldn't they lower prices to .89/gallon till after the election and then raise it to $4.00/gallon.

[quack]

I know I've had to raise my prices for my landscaping business.Blowers,trimmers,edgers,hedge trimmers,mowers,and trucks all run on gasoline.Not to mention backhoes,Bobcats,tillers,sod cutters,etc.,,I'm charging more for gathering supplies also and my suppliers are charging me more for hauling,which I in turn charge to my customers.It comes down to alot more than what an individual actually pays at the pump.

[Arpege92]

You are not alone in your thinking and a great big AMEN too!

[DugwayDuke]

Very good points. I've never understood why the big issue about fuel economy as a factor in selecting a vehicle. I just bought a new truck. Payments are about $465 a month. Insurance another 100. So what's the big deal about paying another $20 in gasoline costs? If any one is really serious about reducing their cost of transportion, they'd buy a cheaper vehicle, not bitch about gasoline prices.

[TonyM]

I am making more money today than I ever thought I would. I recently paid 30K for a new car. Why would $30 - $40 a month in higher gas cost bother me?