Gasoline cost to jump $700 for average household

[JohnWxy]

... and that's based on gas @ $3.61 a gallon.


http://www.reuters.com/article/2011/03/09/us-usa-gasoline-price-idUSTRE7286IO20110309


The average U.S. household will spend about $700 more for gasoline in 2011 than it spent last year, bringing total motor fuel expenses up 28 percent to $3,235, based on an annual pump price of $3.61 a gallon, the department's Energy Information Administration said.

Retail gasoline prices soared by 38 cents over the last three weeks to $3.52 per gallon, according to the EIA, because of high crude oil costs due to unrest in the Middle East.

[Vinnie From Indy]

1. These prices are going to kill any recovery

It would seem the oil companies are gouging Americans.

[graywarrior]

2. The oil corporation's little plan to get Obama voted out in 2012

[Sherman A1]

4. I believe you are correct

people vote with their wallets and gas has a big impact.

[Yo_Mama]

11. Yes, and it is not just gas

Diesel prices rise with gas; that cost boots up the cost of all the essentials that people need, especially food. Agriculture uses a lot of oil inputs.

The people who are being totally fried by this are workers earning under 30K and retirees getting the bulk of their income from SS. Returns on any savings they may have are very low now. Higher income workers do okay this year because of the 2% FICA tax cut, which amounts to 1K for a worker earning 50K and $400 for a worker earning 20K. But the Making Work Pay tax credit was cut, so federal taxes were outright raised on lower income workers this year. And of course, SS/Disability recipients got no COLA and no rebate, so they are in deep economic pain right now.

Between food and fuel, people who were just getting by last year are in a world of hurt this year.

[orangeapple]

13. demand still outstripping supply

Prices going up will curb demand eventually, but they haven't found that level yet.

Expect prices to keep rising, because summer demand won't peak until August.

[xchrom]

3. Recommend

[David__77]

5. I find it amazing that I paid around a dollar when I learned to drive.

It has far outpaced inflation. I try to ignore fuel expenses, right or wrong.

[ixion]

6. Yep. It was around 70 cents a gallon when I turned 16.

I can't even imagine coughing up gas money as a teen these days. :wow:

[David__77]

7. It's also fluctuating radically.

In January 2009, prices for gas here in CA were slightly under $2. Now they're around $4.25. Hasn't gone that low since. In January 2002, the price was $1.22 here! In these 9 years, there has been only 24% inflation total. Can anyone imagine gas for $1.50 a gallon? That would be amazing... What's sad, is that this hits the working poor the hardest. I remember all too well struggling for a tank of gas at lower prices. I cannot fathom this.

[Art_from_Ark]

10. It was 38 cents a gallon (average)

when I took my first cross-country trip in 1978. It was a little more expansive in Canada at that time, but I found out it was because they were still using Imperial gallons at the time, which was 20% more than a US gallon.

[SheilaT]

8. The average household must

use a lot more gas than I do.

I fill my Honda Civic every second or third week. Gas at my nearest gas station was $3.87 when I passed by it this afternoon.

[Yo_Mama]

12. A lot of people can only get part-time work for low wages.

There is nothing like earning from 7.25 an hour to 8.00 an hour, and driving 15 miles to get to your first job, then 10 miles to get to your next job, and then another 12 back home. Your future is just so bright!

BLS' public transport price index is up 9.8% over the year for CPI-W. But the reality is that many places don't have public transport and it is often not very flexible and time-consuming, so most people working low-wage jobs work two and have to drive.

Food at home for CPI-W increased 0.7% for March alone.

We have created a situation that utterly abuses poorer people but works out pretty damned well for the haves.

[orangeapple]

14. debasement of the money

always hits the lower incomes hardest.

The extremely wealthy can invest in commodities and protect themselves from inflation, but the middle class and under get kicked in the teeth.

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." -Ben Bernanke

Mission Accomplished, Uncle Ben!

[Yo_Mama]

15. Of course it does. n/t

[benld74]

9. Most recent bill was 120 more than last bill, when prices were 30 cents cheaper,,,

My round trip to work is 18 miles and I telework 4 times a month, the wife is 20 miles, the teenager well,,,
Wife does alot of driving on the job and the county government stopped mileage paybacks 2 years ago. The teenager, well is just a driving fool
And I can recall 25 cents per gallon gas