[Bikies] Gas Prices

[timwong]

(this post feeds off the posting by Robbie about the transportation funding update, particularly these two sentences:   While Chairman Don Young (R-Alaska) has been pushing a hike in the federal gas tax, the idea has met major resistance from House Republican Leaders and the White House. Additionally, gas prices rise have hit a 13 year high (http://www.usatoday.com/money/industries/energy/2003-08-25-gas_x.htm) making an increase in gas tax an even harder sell.) When you open the USA Today story, you see these two paragraphs:   "Both the price and the increase were the highest since the department began keeping records 13 years ago. Last year, the average price was $1.403. "But prices are below their all-time high when adjusted for inflation. The average price in March 1981 of $1.41 a gallon would be $2.87 today."   This point has certainly been lost on the dim bulb local newscasters and news writers, who continue to make "soaring gas prices" one of their lead stories day after day, never missing an opportunity to quote some clueless gas fume sniffer who pouts about the high cost of gasoline and who is never asked whether it makes sense for a gallon of gas to cost less than a gallon of milk.   "Astonishingly" American families have not canceled their "Labor Day" travel plans because of this price increase.  So, how much does it really cost the average motorist when gas jumps ten or fifteen cents a gallon?  $100 a month?  The choice between keeping the gas tank full or continuing to make mortgage payments?   Suppose a person actually drives the "average" 12,000 miles a year (1000 miles/month or almost 35 miles/day!!!).  If a car gets 20 miles/gallon, that would consume 50 miles in a month.  If the price "skyrockets" ten cents a gallon, that would be a whopping "sell the house now, honey" $5 a month.  Or $7.50/month with a 15-cent rise.   In other words, this news story is much ado about nothing.          - 30 -