cdelena

I was reading that some think electric cars will come about with higher fuel prices but I see little movement in that area so I decided to do some searches. What I found is that gasoline prices are actually too cheap to prompt much (unsubsidized) research.

vader1

The cost of fuels has not risen at the same rate of inflation but that is still hard to explain to someone who has fuel go up quickly without the ability to pay for it.


I filled up today at lunch 10 gallons, 250 miles, $30 for 93 octane. Whatever it cost, I, like everyone else have to buy fuel, but I have cut down on my usage by at least 10% in the last couple years just by changing some personal habits.

steven975

I'd also be curios at what the ratio is between the real price of gas and real incomes.

I think incomes (on average) have been rising faster than inflation, and I would imagine the gas price/income ratio is still relatively low...which is sad given the high levels of outrage over prices.

Even if I'm wrong about incomes, the standard of living you can buy with that income has definitely gone up. After all, even people living below the poverty line usually have a house, a car or two, TVs, air conditioning, and many other things that much of the world's poor will never have. IMO, the "poverty line" in the US is more like a "minimal luxury line" anyway, but that's another subject.

Chris Stack

Keep that in mind next time you see Schumer, Hillary, etc railing on about windfall taxes on oil company profits. WHO needs to get taxed?

WarrenW

Do what I do, take public transportation.

For the last 6-8 months, I've been taking the Baltimore Subway much more often, 2, 4, sometimes 5 days a week. A daily pass is $3.50 and with that, I can get on and off as often as I wish.

If I drive, it'll cost me a gallon each way ($3.23 x 2 gallons = $6.46 roundtrip) plus parking at $7/day = $13.46. Now multiply that by 5, that's $67.30 just to egt to and from work each week. Using the subway, it'll cost me $17.50 for the week, a savings of $49.80...PER WEEK! That's $199.20 a month SAVED!!!! Not to mention less wear and tear on the car.

Lat week, I didn't have to put any money at all into gas. I had 1/4 tank which was left over from the last autox I attended. (I live 3 miles from the subway stop).

I just wish I thought of this 5 yrs ago, I could probably have 20k less miles on the S and could have bought the 7yr/100k extended warranty instead of the 5yr/100k.

Warren

Lice Locket

You're right that with inflation gas prices aren't that high. But you can also see that in Japan, where diesel isn't even much of an option, gas (petrol) is about 6 USD per gallon! Same goes it for Britain, except they have diesel options. The only places that really are cheaper than the US is like Saudi Arabia and parts of the world who dn't use gas that much, like parts of South America.

wannabuy

Here is some numbers to choke on.

Most people will make $10 dollars and hour or less. Most people in our rural town is at $8.00. With a $10 dollar and hour job most are taking home around $1000-$1400. So with the $1400 in mind take it like this.

All of this is in our area a couple three years ago.

Rent $475 single room apartment
Cable $35
Phone $25
Cell $45
Water $32
Electricity $85
Food $200
Gas $140 at $2.25 per gallon and 1250 miles per month. Most people average more than that. 20miles per gallon is the average mpg
Garbage $20
Car Insurance $150

That total is $1207. Now factor in all the other little things like shampoo, dish soap, car maint, and every other little thing and your $200 dollars doesn't go very far.

Now change the costs to more like todays numbers with everything going up because of gas. Gas prices increase has raised almost everything.

Rent $550
Cable $35
Phone$ 45
Water $32
Electricity $110
Food $275
Gas $199 at $3.19
Garbage $25
Car insurance $150

That total is $1421. Now where does the money go. You have nothing left to live on for the bare essentials. Most people per year only get a $0.25-$0.50 cent raise per hour and that is if they are lucky.

I don't even have any health insurance or car payment or for that matter anything else in there.

So for you that make over $40k per year and for most of us I am sure make between $75k-100k it isn't at it seems. The company I work for employs over 100 people and they all have to live under these numbers. So take another look at what gas does to the average Joe. No we don't live in Russia, or China, or South Afica, or Kygyzstan. They have their own problems. I know been there looked at that. That still doesn't help us with out own. You ever looked at the exchange rate of Englands money to ours, or the Euro lately,,,,Hence the price difference.


-Chris

s2kpdx01

[QUOTE=wannabuy,Jun 23 2006, 05:34 AM] Here is some numbers to choke on.

rai

I for one think higher gas prices are the only way people will buy more fuel effecient cars. I'm not saying everyone should buy a Prius. But about 10 years ago lets say gas was between $1 and $1.5/gal so to fill up an Explorer was $22 or $30. Now it's $70/tank.

The Explorer class as well as Expidition, Tahoe etc.. have their uses. But most of them they are used as minivans or cars.

I'm right there. I bought a Trooper in 2000 when gas was probably consistently $1.5/gal so I didn't too much care what mileage it got. Now I get 14 mpg so now 250 miles fill-up cost me $53. I can afford it but when the time comes to get rid of the Trooper it will be with something that gets better mileage.

Some people are crying now but I don't mind. Look on the bright side sales of the Explorer are down to 1/3 what they were at peak years.

Cars like the new Civic get 30/40 mpg are selling like hotcakes.

Mark my words the time of big SUVs being driven in place of cars for no other reason than b/c people think they are cool is soon to be over.

That's OK for me.

Probably the better thing for the US in the long run would be to increase tax on gas even more so that it is closer in line with what people are paying in Europe. I think every one cent/gal is about equal to $1B/year (or so). I wouldn't mind if they put that extra tax towards paying off the national debt.

Now also b/c gas prices are so high there we are seeing some gas saving features like DOD and reduced power buttons on some cars trucks and vans. Even if they only help a little maybe now that gas costs more they will become more mainstream. Every little bit helps.

wannabuy

If had employee data for 1981 along with costs of living I would do it. But if gas doubles in price and your wage doubles in price it would be ok. But that isn't what happened in the big picture. You see gas is only part of the equation but lets start there. The value of $100 in 1981 is about $220 today. That makes your gas of $1.26 go to $2.76. But gas has actually gone to $3.19 or so. Way higher than the percentage of inflation. This in turn has raised the cost of living as well. The person that was making $6.00 per hour would have to make $13.16 based on inflation. However they are making $8.00 to $10.00. So they are cut short on being able to make it. It is actually harder than it was at $6.00 in 1981 based on inflation. In order for a person to make the same money as they did in 1981 they would have to make $15.24 just to break even with the standard of living in 1981. Sorry but this is just not happening.

-Chris