Fuel Cost on the Rise, So What?

[ams511]

I just traded in my Envoy for a Toyota Rav4. Took a look at what I really need now and decided that I don't need all the room in the Envoy more than maybe twice a year. I can rent a truck for that weekend or two or make students haul their own tanks. First weekend of driving highway mileage went from 20-21 to 25+ including some in town stuff. 311 miles on 12.3 gallons of gas. The Envoy never saw 300 miles on a tank of gas and held almost 4 gallons more.

Gas prices will not come down until we increase our refining capacity. I think we'd need to send a few enviro weenie's to China or better Afghanistan though for that to happen. Then if Iran cuts the flow of oil off, so friggin what?

Jim read the article I posted. There is plenty of gas, supply is up and demand is down. What we are paying for is the speculation. Also Iran needs money so it will not cut off the spigot. All that will happen is that the Europeans will buy from someone else and the Chinese (and maybe the Japanese) will buy more from the Iranians.

 

[ams511]

The average sized US house is a little over 200 sq meters. In the UK, its like 80. Other European countries range from 100-130 sq meters depending on location.

I have never been to the UK, I based that statement on what I observed while visiting relatives in Germany and Italy. In both cases their homes were about the same size as what I see in the US. You had to see the balcony of my cousin's condo in Rome, it was huge, much bigger than anything I saw in the US.

Also remember that housing size varies greatly across the U.S. I live in Florida where houses seem to be smaller than in the north and midwest.

 

[ams511]

I just traded in my Envoy for a Toyota Rav4. Took a look at what I really need now and decided that I don't need all the room in the Envoy more than maybe twice a year. I can rent a truck for that weekend or two or make students haul their own tanks. First weekend of driving highway mileage went from 20-21 to 25+ including some in town stuff. 311 miles on 12.3 gallons of gas. The Envoy never saw 300 miles on a tank of gas and held almost 4 gallons more.

Most people did not need an SUV or a big truck, it was the fashion. I remember when a friend of mine wanted to buy a minivan and another friend's wife was trying to talk him out of it because a minivan is not "cool". I don't know how a vehicle is suppose to make an overweight 30-something mother of three, "cool" but she thought so.

Also it is funny that when people purchase cars they always say "oh this will be great on vacation", not realizing that with the cost of gas they cannot afford to take a vacation.

 

[Splitlip]

My Subaru was built in a zero landfill plant in these here United States. Lafayette Indiana. Do a google, quite amazing

 

[GrumpyOldGuy]

Also it is funny that when people purchase cars they always say "oh this will be great on vacation", not realizing that with the cost of gas they cannot afford to take a vacation.

That's why you rent a car for vacation. Once you take the time to figure out what a car cost you to drive (not just gas) there are times when it makes much more sense to rent the appropriate car (with unlimited mileage) and put the wear n tear on a fleet vehicle rather than your own which can be optimized for commuting. You get the best of both worlds.

 

[DandyDon]

That's why you rent a car for vacation. Once you take the time to figure out what a car cost you to drive (not just gas) there are times when it makes much more sense to rent the appropriate car (with unlimited mileage) and put the wear n tear on a fleet vehicle rather than your own which can be optimized for commuting. You get the best of both worlds.

Done that many times. Some companies are restricting how many states we can take them into. Very often a good idea tho. And if you have a problem away from home, it is their problem. AAA will tow me to my home mechanic up to 200 miles. Beyond that, I start looking at rentals.

 

[theduckguru]

Good graph, now overlay wage increases vs inflation. Then graph inflation and health care costs and you'll figure out why we are in a recession.

From one source: InflationData: Gasoline Inflation

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[mathauck0814]

I wonder - of all the people who complain about energy prices rising 10-20%, how many of the same people are willing to pay 10-20% interest on their credit cards? Borrow money to buy a car? Take out a mortgage on a house?

People are fiscal hypocrites. Most Americans routinely buy things that they feel entitled to and can't afford. Why should gasoline be any different?

 

[Mark Derail]

I sure agree. Don't anyone forget that American gasoline is heavily subsidized, that's why it's so cheap, it should cost much more. Compared to Europe and other countries, America has it easy.

The price of gasoline in Maui, HI, was CHEAPER than what I pay here in Montreal, Canada. Last time I was there it was 4.64 a gallon in Maui.
Our current price here in Montreal is 1.44 per litre, which is 5.45 USD per gallon.

Yet people still buy houses far away from their work, around Montreal, just like in the US, and travel upwards of an hour at highway speeds before hitting traffic congestion, and complain that their fuel cost is higher than their car's monthly payment.

I wonder - of all the people who complain about energy prices rising 10-20%, how many of the same people are willing to pay 10-20% interest on their credit cards? Borrow money to buy a car? Take out a mortgage on a house?

People are fiscal hypocrites. Most Americans routinely buy things that they feel entitled to and can't afford. Why should gasoline be any different?

 

[GrumpyOldGuy]

I sure agree. Don't anyone forget that American gasoline is heavily subsidized, that's why it's so cheap, it should cost much more. Compared to Europe and other countries, America has it easy.

The price of gasoline in Maui, HI, was CHEAPER than what I pay here in Montreal, Canada. Last time I was there it was 4.64 a gallon in Maui.
Our current price here in Montreal is 1.44 per litre, which is 5.45 USD per gallon.

Yet people still buy houses far away from their work, around Montreal, just like in the US, and travel upwards of an hour at highway speeds before hitting traffic congestion, and complain that their fuel cost is higher than their car's monthly payment.

American gas is not subsidized significantly to the best of my knowledge. It is taxed, although at a lower rate than Canada and a lot less than Europe.