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Paying More At the Pump

Posted June 2, 2008

With summer just around the corner many of us will be packing bags, getting ready for a much-needed vacation. Whether it be a week away or even just a day at the beach, the price of gas will most likely enter your mind immediately as you begin to build a budget for your trip. With the soaring price of fuel these days, just getting to and from work or the grocery store may be putting a big dent in your monthly spending.

A recent article from CNN tries to answer the question of who or what is to blame for $4 a gallon gas this summer. Astonishingly enough, gas prices from 1999 were at around 90 cents a gallon. How did we get to more than 4 times that in such a short amount of time?

One of the biggest reasons for the higher prices is simply supply and demand. While we are finding and procuring less oil, we are using it more than ever. The reason we are using more now is partly due to the low prices from the 1990’s.

The gas taxes in the 90’s were very low in the U.S. as compared to other developed nations and this encouraged more consumption. It made it seem sensible for a small family to purchase vehicles like big trucks and SUV’s that need a lot more gas per mile than an average car.

Stephen Schork, publisher of the industry newsletter the Schork Report, explains, “Our demand has skyrocketed, but our ability to supply that demand has stagnated.”

To see a timeline of events that could explain the high gas prices we are faced with today you can go to:
http://money.cnn.com/2008/05/20/news/economy/gas_price_history/index.htm?postversion=2008052010

Why do you think gas prices have gone up so much in such a short period of time?

What kind of an impact will the cost of gas prices have on your summer plans this year?

44 Comments

wellcraft says:	on Jun 09, 2008
Stock Market Speculation or is it Manuipulation for investors to raise prices, make a bundle, and hopefully get out before it crashes. Unfortunately, we are all paying for the existing greed and the unwillingness of our national government to investigate.

sharman421 says:

on Jun 12, 2008

We need to become less dependent on foreign oil. Studies have shown that today's oil drilling leaves a very small environmental footprint, but Congress's fear of lobbying has brought us to our knees. Yes, we should seek other forms of energy! In fact, that should be a mandate. However, in the meantime, we have ANWR! It is like having gold in our back yard, but refusing to use it. Blame congress. We actually have oil fields in the Southern United states just 50 miles off shore that congress won't let American companies touch! But, hey, Cuba and China are there, and I'm sure their environmental policies are impeccable, right? Since the Pelosi-Reid congress (a very short time) and their wacko regulations, our gas prices have more than doubled. Do the math.

JoeyWallace1978 says:	on Jun 13, 2008
I just cant believe the inflation!!!!

SaraBelle says:	on Jun 13, 2008
I agree with Sharman. We definately need to become less dependent on foreign oil!

singerja says:	on Jun 14, 2008
It is a concern for us too. We live in Florida and our family lives in Maryland. We had planned for two trips this summer. Now, though we cut back to one. We figured out that by doing this we will save $2000 counting gas, food, hotel stays etc. I think that everyone is having to REALLY cut back. Jackie http://singerja.makemoneywithfreebies.com

queengigi says:

on Jun 14, 2008

Something really needs to be done,the goverment controls and regulates everything else.They can figure something out. lets focus! I am sure it is a very tuff situation for the middle and lower class famlies and single parent, by the time they pay all the bills, chlid care,and fill up thier tank for work, what is left??? they work for gas! It is very sad when you can't afford to drive through this beautiful country to go on vacation. that used to be a thrill, to just go for a ride and enjoy the beautiful sites and scenery. NOW all you think about is how much this is costing you to get from point A to point B. And the problem is just trickling down to everything we do and purchase. Many others like myself live out away from our jobs, and would bike to work but work 25 miles or plus away.

Lusadi says:

on Jun 14, 2008

We're definitely feeling the impact. Due to the weather conditions where I live, 4 wheel drive is an absolute necessity. The city also hasn't managed to connect all their bike paths or provide usable bike lanes to make that form of commuting safe. It's had such an impact, that I won't even take my child to a park if the park is on the other side of town. The gas is just too expensive. We'll be finding things to do this summer that are quite close to home.

showponye says:	on Jun 16, 2008
if its supply and demand thats the problem perhaps its because of the increase in purchase of SUV's...there are many more on the road now! Unfortunately I just bought our first one this past April :(

Aloyse77 says:

on Jun 18, 2008

The only thing affecting the price is the greed of large corporations that dwell on the poor folks need for the product. Maybe oil distribution and drilling should become owned by the USA. Then there would be more control over pricing.

As far as my summer plans and gas... I installed a pool in the yard. I will not being going to all the local theme parks, beach, or shopping wasting fuel people need to get to and from work. Maybe the gas price will lower if people aren't spending all their money driving places.

maynardmartha says:

on Jun 23, 2008

I think if we don't all complain to put a freeze on the price of gas and food soon we are all going to be in trouble. Our Goverment should be there for the people, when are they going to put a stop to all this bologna? Who can afford to drive to work at $4.00+ a gal for gas. It won't be long till we are paying more to drive to work than we make. Our wages sure aren't going up any! I'm like some others here and have to drive to work a hour away. spending $100.00+ on gas a week sure cuts into the grocery and bill money now and I watched the news tonight and hear the flooding is going to increase the price of beef, eggs, milk, pork and who can afford corn now? I'll bet Mr Bush isn't worried about his gas or grocery bill. I don't think anyone in Washington is riding a bike to work or cutting back on food or not able to pay bills on time. Why would they when all their pockets get a little fuller the higher things get.

flwrpwr says:	on Jun 24, 2008
A big concern for us, too. We try to do many errands in one trip.

sweetheartkoala says:

on Jun 24, 2008

Living in a rural area, we try to fit all of our shopping during the times we must go out on medical appointments. Unfortunately not all the trips can be done this way. I hope Congress can get this resolved, because it is hurting everyone. At the rate it is going, it will be impossible to heat this winter. We checked propane today to lock it in this winter and it is at $2.30 a gal.. Who can prepay at this price, you would have to save all year.

a4chan says:

on Jun 24, 2008

We are managing with one car since 2001. I used to carpool to my previous work place. My husband rides his bicycle to work 4 days a week and I use the car one day to run all errands.

In summer of 2006 we had made a pact to peddle to resturants within 7 miles radius :)

this summer is hot we have not been able to go to resturants by bicycle,although, my husband still rides his bicyle to work - he leaves early in the morning and rides bus back in the evening...

We are trying to use the car less / leave less carbon footprint.

bluebear80 says:

on Jun 30, 2008

We are a dependent nation. We do not produce anything to be self sufficient. There is no shortage of oil nor is there a greater demand. It leaves you with the question of WHO IS TO BLAME FOR THE MESS WE ARE IN. The government is not too concerned with what we pay as they give themselves a raise when they get ready so there is nothing left out/off where they are concerned.

People on social security with be in dire straights to get their medicine (which has not gone down), get food and pay utilities plus rent. They simply cannot do it.

We are in trouble and it is going to get worse before it gets better. How will we survive?

lisawest0120 says:	on Jul 01, 2008
The United States was a God-fearing nation in the past. That is why we prospered. Now that we, as a country, leave God out of everything, we cannot expect to be a prosperous nation. We should "seek first the kingdom of God" then prosperity will follow. It is not going to get better unless we learn to reverence our Maker again.

Indigoblue says:	on Jul 04, 2008
I remember reading articles long ago on experiments for alternatives to oil...I believe the powers that be--made huge mistakes by not following up on alternatives...as well I do believe the prices are manipulated by large investors and we get little if no actual/factual information as to why...its very sad for charities...people who are really going without.

bbred57 says:

on Jul 06, 2008

A lot of it I think has to do with Bush in the Whitehouse. I mean the man is in Texas oil and you do not seriously think he is going to do anything about the price of oil while he is head of our country. Secondly, there are alternates out there but the gas and oil companies do not want them to be used or explored more because that would take away their big profits. As far as our vacation plans this year, we are taking one but we will be using our trike and exploring our state with it. This cuts down on the gas costs for us and we get to explore the outdoors and have fun.

dajaquez42 says:

on Jul 07, 2008

It is so sad that the cost of fuel has trickled down and has affected everything in our life, for instance this year we are not able to take a vacation and that is the reward that we usually give my boys for behaving and having good grades, also went to the grocery store yesterday and three full days of meals were $80.00 dollars, the 1/2 gallon milk went up to $2.89 from $1.50, the hotdog buns went up from .49 to $ 1.14, Potato chips 2 for $3.00 to $2.99 for one bag, loaf of bread from .59 to $ 2.64 and if it is not bad enouph our electric bill went from $120. last month to $320. this month and all the company said was that because of markent fluctuating their prices would change every day, oh but they were quick to let me know that if is signed a 3yr cont the could give me a better rate lock in for the next 3yrs, i can go on and on, this is sad, when we are on a fixed income, no government assistance, work two jobs both spouse and i, live in south texas. We paid some bills down with stimulus rebate, and figured we could breath a little easier, but now we are spending this money just to get to work and back. this is so sad bottom line everything has gone up except our paychecks.

Krystal50 says:	on Jul 07, 2008
When will this ever stop??? The rich get richer the poor get poorer.

Agratgrl says:	on Jul 07, 2008
I don't understand why the government cant put some sort of "freeze" on big oil. They have been making record breaking profits (in the billions) each quarter! That tells me that they are grossly inflating their prices. I'm all for one making a buck, don't get me wrong, however, this is outrageous!

scooter64 says:

on Jul 08, 2008

OK, we of the USA are so far behind. I remember discussions of oil problems 30 years ago. So what happened....Nothing. Congress is still going over the same thing, over and over again. But it looks like China will be drilling 60 miles off the US border...and they won't be drilling straight down, they need to drill under the USA mainland to reach each....mmmm? I consider myself a moderate activist....but let's get going. We should be drilling for oil, and advancing our nuclear power. It's interesting that the Governor of Alaska is suing the US government and they, the Alaskan people joined the USA to be an active partcipant in this situation in regards to drilling in the area of Anwar... and only in the winter with absolutely no impact on the environment.....we all better get busy and learn how to really voice our opinions. Including myself.

pinka says:

on Jul 08, 2008

Something needs to be done with the rise of gas prices. Not only that, everything has gone up except the salary. The salary needs to be raised so that we can keep up with going up prices. We recently paid off some bills, with prices going up and not the salary we are having to budget tightly again. I know there are others that feel the same. It's not easy, especially if you have kids. I hate pulling back on things that make my kids not understand the prices of things.

rripcordd says:	on Jul 08, 2008
We need to conserve more, find our own, and find alternative power. If we don't do all of these things we will always take the risk of being right back were we are right now.

maxandlucy says:	on Jul 08, 2008
Limited supply, too high a demand, too few holding "all the cards" seems to be the ticket. Why are'nt hydrgen fueled cars being made like crazy now???? I hear they already exist in small number and in other parts of the world being driven now. The high cost of gas has definitely limited our travel plans for the summer! We travel only for important family/friends get togethers.

diannalynn41 says:

on Jul 09, 2008

Gas is up to 4.29 here Oh but wait to help us they raised minimin wage to 6.55 per hour LMAO who do they think they are kidding?OH and i dont want to forget about that big stimulus payment to boost the economy LMAO again mine went to help with my bills that i am struggling each day to keep up with. I just dont know how us minimin wage workers are going to hold out much longer with the gas and food prices..And then they want us to send food and money to other countrys ,now dont get me wrong i believe in helping others and the less fortunate but when will our goverment start to help us the american people? We are in BIG BIG trouble I dont know the solution but we need to do something before its to late.

patybluetx says:	on Jul 10, 2008
This is affecting us too. I don't think there is anyone not affected by gas prices. At this point every industry is being affected so all households are having to make adjustments. The way we're dealing with it is by saving money for more eco-fliendly and less gas consumming vehicle and we do errands in bulk once every other week.

msfriendly says:	on Jul 13, 2008
Make sure to go out and vote for the candidate that you feel will get us out of this situation! Not only in presidential years but at your state level. I always believe that if we complain, it should be to someone who can do something about it! Let your voices be heard, girls!

aridubber says:

on Jul 15, 2008

I am utterly disgusted by the painful pump situation plaguing our country and the world at large. When I started driving in 1999 the price was roughly $1.17 a gallon. When Bush took office, the price of gas was $1.42 a gallon...on my last fill up I paid $4.07 a gallon...which added up to over $40.00 to fill up my small fuel efficient car. Every time I have to fill my tank I want to throw up. I work hard and I need to drive to get to work...I teach for a rural school district where public transportation is not an option. Something needs to be done to ameliorate this blight on our nation sooner rather than later. Bottom line REGISTER TO VOTE and make your voice heard! WE NEED CHANGE AND WE NEED IT NOW!

MBattistella says:

on Jul 15, 2008

I'm sure that we have all heard on the news how the current administration is trying to push the drilling offshore, but if you look at the reality of things, we won't be able to do anything with that for another 3 years or so, plus it won't make that much of an impact on the supply. It will have definitely have an effect on our environment. We need to get real with ourselves. If we, the people of the U.S, want to stay as the most powerful country in the world, we need to get real about this whole oil situation. We're suppose to be the leaders right? How about some innovation, can you imagine if someone created/designed a vehicle that ran without gas? Why hasn't anyone done this??? After a hundred years you would think we could come up with SOME sort of alternative.

Sometimes it seems like we are all running in one place. We need our own industrial revolution over here, because China right now owns most of our currency. China is lending us money to cover our deficit spending, we're talking trillions of dollars. The way oil is valued globally is based on the us dollar. As the value of our dollar drops, then the price of oil goes up. Right now, one Euro is worth $1.60 of our money.

It's depressing to see this great country degrade in such a short time: 8 years I think?

MEMA124 says:	on Jul 22, 2008
There are only 2 people to blame for all of this and we all know who they are......Georgie and his side-kick Dickie. They each have interest ( financially ) in the Saudi's and oil . They have taken this country to a all time low and November get get here soon enough.........Remember , McCain is no better then Georgie and Dickie .

jamazoo says:	on Jul 22, 2008
Oh I agree, Mccain wont be getting my vote! I think greed is the issue with oil. It's not supply anddemand! Oh puhlease! I think it really is messing up our country and their like woops, it wasntsupposed to do that! Now it kindof to late

momoffive says:

on Jul 23, 2008

We are on the rise. Recently there was a slight drop in gas prixes and no sooner than it went down there was talk of gas rising even higher. I think congress needs to get off their behinds stop tossing ideas around for election purposes and do something NOW! Their words are mighty when they speak but now is the time to show the might behind the words not just roll on to the next state and re-start the same good OLD speech.

I agree with many above that if we can make a stick glow with this unique liquid, Why? not find some resolution to this economic issue rising day-to-day. This is our childrens future we are balancing here and the way it is going I greatly see our children suffering for their mistakes in running this government solidly. It is a shame to see how lavishly they live but until they walk a mile in a different shoe they do not realize the impact they are facing.

They can shout out their ideas and what NEEDS to be done, but in reality it takes many years for them to even agree. Well, I think for once they can all agree this is a huge issue and something needs to be done now not once we have a newly elected official in office.

toriphilly says:

on Jul 30, 2008

IMHO if the US would spend more on the metro transit systems and less fighting others wars we would not be in dyer straights about fuel and economic fuel issues. Also we refuse to drill where we have oil to drop the prices. I think the USA is such a greedy and ungrateful country. I am not talking about the people that live here just the way we live. I think there should be a commute limit to what we could do. Not only could we solve our obesity issues with more exercise to get places, but it would cut down on the reliance on vehicles and pollution.

I am just thinking logically and green. :)

merie145 says:	on Jul 30, 2008
McCain wont be getting my vote. I cant believe his new ad. His Ad blames Obama for high gas prices. What a bunch of bull. I drive a V8. I've made changes to my driving routine. I only drive to work 2 days of the week. I carpool the rest.

firecracker says:	on Jul 31, 2008
Gas prices are causing everyone to adjust the way they live, if it would last only for a short time it would actually be good for everyone to learn to conserve and to live on less. Unfortunately I think we are going to have to cut back for a long time!

henawa says:	on Aug 05, 2008
we need to become less reliant on foreign countries. We should look off of our own coasts and drill there, just like what venezuela did. and take it out of the hands of these big oil companies

mandyspeaking says:

on Aug 07, 2008

Gas prices are a result of supply and demand and speculation. We are using more gas now because of larger cars and more of them. More people in the workplace commuting, more people being able to afford cars, so the use of gas is an all time high. Speculators say that at the rate we are using gas now, we will run out of supply by a certain time. That is when the prices increase.

As for Bush, I think it is so funny how everyone always wants to blame him. Repblicans have tried to bring change by asking for drilling on our own land, however our senate is controlled by democrats who keep turning down the idea. When things are good blame the president. But in our country the president has little power on his own. He can do anything with approval from the Senate...and look who that is.

Before you vote for Obama just because you want a change, ask yourself how is he going to change things? What is his solution for lowering gas prices? He thinks we should just not drive as much. Well is that practical in your life?

Gregamy says:

on Aug 14, 2008

I don't know if its an Urban Myth, but I heard a story from someone recently about a guy in the 1970's who bought a Cadillac and was shocked to notice that he got about 80 miles to the gallon!! He was so shocked he wrote to the car manufacturer to thank them and then 2 weeks later some people showed up at his house to take back the car. They said that it was a test car and should never have been sold to him. If this is true, then the car makers have had 30+ years at making an engine that gets more miles to the gallon, but why would they do that since they all probably own some stock in oil! Get the consumer to buy your car and keep filling it up with gas, what a great way to make money on both ends!

We need a society that promotes more walking and biking with real trails and sidewalks (not these little strips on the sides of the road where a big truck comes down the road and almost hits you).

We don't need to drill anywhere else, the oil companies have leases on land that they are NOT drilling on, they are using this as an excuse to get the government to give them new leases on other lands so they can make even more profit. PLEase explain to me how Exxon can put up a huge $12 million quarterly profit and say they are not making anymore money off of the increase in gas prices. Please think before you vote for McCain, do we want another Bush clone in office that is in the pocket of big oil?

dollyo47 says:

on Aug 17, 2008

It never ceases to amaze me that whenever the price of oil per barrel goes up, gas stations immediately raise the price. But... when the price goes down, they don't lower the price until "they receive lower priced gas from their supplier".

Something is wrong with this picture!!!!

On another thought, one day I was waiting in line to get gas and the price was increased while I was sitting there waiting.

honeydrop1964 says:

on Aug 20, 2008

I have a close friend that recently lost her home. Its so sad. In the 1990s..she was living the good life. In 2004 she lost her well paying job to overseas..and now works 3 part time jobs, gets food stamps, and now borrowing money for gas to get to work. The prices of certain things all depend on who is in office in my opinion. Its the stock they own, their friends, etc. Remember when Carter was in office and peanut butter could only be purchased by the upper class? Six and eight dollars a jar in the 70s? Amazing he was a peanut farmer. I think gas prices will go back down, though never to 90 cents per gallon and something else will rise. People keep saying we need to be less dependent on foreign oil...but the fact is...scientist say there is approximately 100yrs of oil left. The US doesnt want to use what we have. They want to use up what we can get from others and save ours for the last. Makes sense to me. Also, they are pushing electric cars. Sounds like a great idea unless you think about the power grid in the US. There are constant blackouts in many states, because things havent been taken care of. Cant imagine what it would be like if we were all charging our cars along with all the electric we use now. Anyway...life goes on...

tweety24311 says:

on Aug 21, 2008

I think it is ridiculous the way that the gas prices have sky rocketed in the past year. Unfortunatly, the middle and lower classes suffer for it. My husband has to drive over 60 miles one way to work everyday and it takes up a good portion of his check. That should be used for our children for college! I think its all a scam and a lot of people are getting rich off of it. I personally don't think it will ever change.

sjsmtlaurel says:	on Sep 10, 2008
There is a real need to become independent from foreign oil and to find alternatives. Big oil also needs to be held accountable. Why are their profits greater than they have ever been? We are all sacrificing things in order to be able to afford these gas prices and the oil companies are profiting. Disgraceful!!

chrissybee says:

on Sep 18, 2008

I live in Atlanta and GA has historically had one of the lowest state average gas prices. Now with the higher costs the prices at the pump have remained super inflated compared to everywhere else in the country. Somewhere in our state, someone is taking advantage of the situation and pocketing a much larger profit than the national average. Our gas prices are so high!

I would like more sidewalks in our area.

Ethanol isn't the answer as that actually costs more to produce and is already directely impacting the cost of our food supply since corn is in so many food products.

zionita says:

on Sep 19, 2008

I just don't get it...Other countries have smaller and more efficient cars. They don't just buy a big car because it's cool.

A friend of mine bought a new Honda Civic last year and many of his family members and relatives ridiculed him that it is a small car. (Most of his family are driving big Ford trucks and Dodge Rams.) Well know he can fill up his tank and pay his payments without cying so much, while most of his family whine that they never have any money. They also whine about never having gas and hating to use the AC so much.

Why is that many SUV owners & Hummer owners cruise around with just one person in the car? Not everyone has a large family. Why does everyone think that bigger us better?

Why can't we have more solar products? People heat their pools by solar covers and some communities around here use solar lights at night. Why aren't there more Solar powered cars?

Everytime a hurricane or tropical storm pass by Florida the price goes up... As hurricane Ike passed by ...many local stations were trying to limit people to $10.00 in gas. At $4.00 a gallon or more people could only by 2.5 gallons. How can anyone evacute out of low lying areas with 2.5 gallons?

To comment, please