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Paying More At the Pump

Paying More At the Pump

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?

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  • wellcraft By wellcraft
    06.09.08  

    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 By sharman421
    06.12.08  

    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 By JoeyWallace1978
    06.13.08  

    I just cant believe the inflation!!!!

  • SaraBelle By SaraBelle
    06.13.08  

    I agree with Sharman. We definately need to become less dependent on foreign oil!

  • singerja By singerja
    06.14.08  

    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 By queengigi
    06.14.08  

    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 By Lusadi
    06.14.08  

    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 By showponye
    06.16.08  

    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 By Aloyse77
    06.18.08  

    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 By maynardmartha
    06.23.08  

    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.

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