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$3 gas is here. Again.
While this is usually a problem in and of itself, the fact that the national average price for a gallon of regular unleaded gasoline has crept above $3 in November should be enough to give the United States some pretty big concerns about the likelihood that the days of $4 gas are approaching much faster than most of us had anticipated.
Currently there are 34 states (plus Washington, D.C.) that are reporting average gas prices above $3 a gallon. Hawaii is reporting the highest state-wide average gas price at $3.36 per gallon, while New Jersey is reporting the lowest price at $2.82 per gallon.
Traditionally, gasoline tends to be less expensive during the fall and winter due to decreased demand and because there are less emission reducing additives (which are in “summer blend” gasoline) in the fuel. Unfortunately, it appears this winter is going to be different thanks to the near certainty that the price of a barrel of crude oil will soon cross the $100 threshold for the first time.
To give some perspective on how high gasoline prices are for this time of year, one year ago the national average price was $2.20 per gallon. Today, the average price is up to $3.05, roughly 38.6% higher than last year. Had there been a similar year over year spike this past summer, prices would have jumped to $4.21 based on the previous summer’s high of $3.04 per gallon. This summer, gas prices peaked at $3.24, or roughly a 6.6% year over year increase.
Based on many of the comments left on this site, I think many of us welcome higher gas prices because we believe it’s the only way to get people to rally behind alternative fuels. While I buy into this theory, I’m very concerned that if gas prices continue to climb, they will be the stray that breaks the economy’s back.
With falling housing values already eating into consumer spending (i.e. the lifeblood of the United States’ economy), the notion that people will have to pay more at the pump could be enough to push many tapped out consumers over the edge. Once consumer spending goes, the U.S. economy will be soon to follow. Not that I think a recession would be a bad thing, but that’s a discussion saved for another site and another day.
Regardless, this all boils down to something I’ve said many times on this site: the days of cheap energy are gone.
{ 15 comments… read them below or add one }
Oh please. It costs more than $4 a gallon in Canada.
We’ve been at over $3.40 for quite a while now in Maui, it just varies from island to island. But with more cars that are hybrids or even some Hydrogen powered cars coming up the gas prices aren’t as scary as before. Thing is even if gas goes to $5.00/gallon, people will still buy it so they can go to work so that they can pay the rent/mortgage.
In Sweden the price is $6.5 a gallon.
ok..by my reckoning you have it easy – we pay £1 a litre of fuel – that’s £3.78 – which according to xe.com as of right now is $7.95 – go figure who pays more
Go to http://www.SolarCoupons.com and get a cheap solar system. Then get an electric or hybrid electric car and plug in at night. Problem solved…
I’m sick and tired of Europeans complaining about their gas prices. You live in an entire different country and your country doesn’t have a lot of the problems that ours do. It is also safer in a lot of ways. Your police force doesn’t even carry guns in some areas. You get many things near free that we pay an arm and a leg for. Things which every human being needs, not wants. The same goes for Canadians. Especially Canadians actually. How many deaths occur in your country a year? And you’re complaining about gas prices? I don’t see your country in economic trouble either. So, do what you do best when America is in trouble. Sit down and shut up.
What people in other countries fail to realize is that the US is built on automotive transportation. We don’t have high speed rail between states or any other alternative. The average American buys a lot of gas, so as prices rise, with no alternatives to get to work/home/school, we’re stuck – and complaining.
Chris – the last 15 years our economy in Canada has been the shits, our income tax rate is over 10% more than the US, our sales tax is 15%, and as an oil EXPORTING country, we still pay higher gas than you. Where were you “great” americans when we were in trouble? No where but feeding your faces and sucking up resources.
Stop feeling sorry for yourself because you FINALLY have to pay higher prices for something.
We have “things” near free? Where do you think our gov’t gets money to pay for these “things”…taxes. Quit feeling sorry for yourself. We pay for our services and we still manage to have a financial surplus. Its called fiscal responsibility. NOTHING IS FREE, unless you invade a country and steal it. You should know exactly what i am talking about. You call it nation building and spreading democracy.
What does the # of deaths in your country have to do with anything? Unless you are figuring that these deaths are people who are no longer paying taxes and you are upset about it.
Your last comment about “sit down and shut up” is classic egotistical crap.
Where do you think you get a majority of your oil and gas? Your ignorance obviously thinks its from the middle east..its from us CANADIANS.
Keep buying, its money in our pockets. THANKS!
God Bless America is all I can say.
Does the fall of the dollar have anything to do with gas prices? It’s lost nearly a third of its value lately…
Europeans also receive other services paid for by the high priced fuel, like health care, which we still pay for out of pocket.
over 3 dollars a gallon? boohoo! when i was in buffalo at the beginning of october i couldnt wait to fill up my truck! when i did the math (not forgetting to take into account that the canadian gallon is larger than the american), I still save 30 cents a litre!
Fact being, we are an oil dependent nation… another problem we have is the way the gas is being refined, after taxes, transportation etc. that is pretty much what you are paying for. Being a conservative white male… I do have to blame big oil, and on an economic level i can take everyone back to basic high school economics class, SUPPLY AND DEMAND!!!!! the last oil refinery built in the u.s. was in the late 70’s early 80’s. With passing years demand for gasoline has increased (SUV’s etc.) So much that these refineries cant meet the supply demanded. Were talking about an industry that brings in the highest quarterly profits in the world but won’t invest into their own companies. But why would you invest in something to make it better, when you don’t have too; especially when the federal government wont mandate it. To sum up my rant… this is the only industry that gets away with controlling supply, with increased demand which in turn increases prices…. ENDING IN INCREASED PROFITS. Thanks for reading
Hey! I know where everyone can get gasoline for 85cents/gallon!! It’s the best fuel you’ll ever get, too. Where?? Kuwait!! Yes, sir!! The MIDDLE EAST is LIVING IT UP!!! The USA gets screwed every day by CEOs & Politicians that continue to get rich. Meanwhile, the Kuwaitis are driving Hummers, Ferraris & Maseratis, and paying 85 cents per gallon for top-grade unleaded. American lives were sacrificed 15 years ago in Desert Storm, so that OPEC, Republicans and Oil Companies could tap into the Kuwaiti oil fields and get rich, rich, rich for decades to come. Naturally, they’re making the Kuwaitis rich, too, giving them the chance to live in 7,000 sq. ft. homes & oppress people from all over the world. Yes, sir = Saudi Arabia had slaves until 1962, and for all practical purposes, it still exists over here. So, every time you fill up your big luxury cars & trucks, remember that another Indian or Pakistani maid is quite likely getting beaten and/or raped (documented cases) under the oppression of her Kuwaiti “employer”, your Exxon CEO is setting up his $5BILLION retirment package, and your local Congressman is filling up HIS Lexus on YOUR tax dollars.
Oil will never go below $85 again. In 2010 oil will be over $250 a barrel and gas will be $10 a gallon. With that you will either buy a hybrid which will still be expensive to operate or ride your bike or take the public transit. I suggest to get a fuel additive that reduces fuel consumption by 18%. I found just a product and it works.
http://www.eyicom.com/saveautofuel