$4 A Gallon Gas...
 

Here we go again. They are predicting $4 a gallon by Memorial day. And some are predicting $5 a gallon by 2012. I'm sorry but our government and politicians just don't seem too worried about the economy. High fuel prices will most likely supress any decent US economic recovery any time soon, and not allowing much new exploration/drilling is a big part of the problem IMHO.

go into business for yourself. then you can write off your gas.

Sparky, I'm already pyaing $4 per gallon. My boat is still cheaper than skiing for the family. :eek:

Memorial day???? Prediction for us is by spring.

why is this a surprise?

Man, we've been hovering near $4/gal for a while. I'm just glad that it's not $5/gal like it was 3 years ago. I almost considered cutting out riding for a while.

Seriously why Complain about the price of gas! When you live in Canada its different every day in Ontario its 1.15/L. 1 US gallon = 3.78541178 litres so 3.785 X $1.15=4.35.....

Stop complaning about it.. its out of yer controll... Or stop taking fancy vacations and use that 4 grand for Gas!

Stop compaining about it? The price of gas hurts a lot more than your cost for a vacation or to go to the lake. It has a negative impact on almost every major market world wide.

Funny that when gas cost $5 a gallon 3 years ago (we were paying over $6) the price per barrel of crude was well over $100. Now it's just above $90 and the price is still going up.

BS, oil companies gotta produce their profits somehow though.

It is worse in other places. Here we pay more, by far.

$1.50 US ($2 NZ almost) per litre x 3.785 (convert to US Gallons) = $5.68

Filling my boat costs $150 USD and it's only got a 27(ish) gallon tank.

It is even worse in Europe and has been for many years.

Inflation and taxes account for the biggest relative increases in the price of gasoline.

Inflation
Inflation is the general rate at which prices of goods/services are rising (and, conversely, the rate at which purchasing power is falling). In the U.S., an item that cost $1 in 1950 would cost about $8.78 in 2008. In 1950, gas cost about 30 cents per gallon. Adjusting for inflation, a gallon of gas should cost about $2.64 in 2008, assuming taxes, supply and demand stayed the same; according to the Energy Information Administration, the average U.S. gasoline price for 2008 as of August 2008 was more than $3.50 per gallon. The level of inflation varies by country, which can influence the price of fuel.

Taxes
The tax on a gallon of gas in 1950 was approximately 1.5% of the price. In 2008, the federal, state and local tax on a gallon of gasoline was approximately 20% of the total price. This means that taxes added about 49 cents to the price increase in a gallon of gas during this period. Other countries have vastly different tax policies for gasoline, some of which can make taxes the largest price component.

Posted to fast...Here is the link for the data from my previous post

http://www.investopedia.com/articles...gas-prices.asp

It's interesting to me to see cost of goods rising faster than relative inflation should allow. This in a time when theoretically cost of production should be reduced by technology and volume. As usual, the government is getting it's hands on a larger part of the total cost, and yet they're still broke. Hmmm...

I'm actually OK with raising gas taxes as it directly reflects a persons use on the highways, but only if DMV were to offset the fees for those that put less miles on their vehicles. Just another case of the consumer being taxed on top of things that are already taxed.

Kind of like health care. No matter how much of your money they get, it's still not enough. Even though we pay double the rest of the world for the same quality of care.