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.”
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::
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::
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::
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?
