By now you’ve all heard, and experienced first hand that gas prices have gone up. It actually pains me to write about this topic since, quite frankly, I’m sick of hearing about it myself. Ever since I can remember anything about gas prices, they’ve been going up. It’s nothing new really.
While it’s true that gas prices are at record highs, is it really time to cry “Armageddon”? I mean, is it really all that bad? It can’t be all that bad since the demand for gasoline hasn’t really declined at all. People are still driving more or less the same amount as before and quite possibly more.
So just how bad is it? The previous average high was something like $3.07, and recently it’s peaked to around $3.22 or so. Let’s just say (for ease of calculation) that the average price has increased by $0.20. If you’ve got a 20 gallon tank (which is quite large), it now costs you an extra $4 to fill it up. That’s not really enough to keep most people off the road.
There’s also a bigger issue here.
- If an extra $4 (or $20 for that matter) actually puts a great strain on your finances, you’ve got a much larger problem than just rising gas prices.
You need to understand your cash flow and how to increase it. We all have many different expenses, and gas is only one of these expenses. It just so happens that it’s not a “fun” expense like going out to movies and living the restaurant lifestyle.
Anyway, increasing gas prices are nothing new and it’s no secret that they’re going to continue to go up. Your finances shouldn’t be so tight that these increases are going to break you. If this is the case, however, begin now to take steps so that this won’t continue to be the case. There are other options other than to complain about a 20 to 40 cent increase.
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by Anonymous, on May 25 2007 @ 8:54 pm
It’s not just gas moron. That cost is passed on through higher food prices and consumer goods. To say nothing of the thousands of dollars it cost to (barely) heat my home. And oh ya, it’s not $.40/gal. That’s just the latest. Gas was $1.00-$1.20/gal. Now my fuel bill is tripled. THAT is why people complain. I’m glad you’re rich, but I am not.
by limeade, on May 25 2007 @ 9:35 pm
Thanks for the kind words. Very grown up. I agree that there are other associated costs just as many things are intertwined in economics.
As for the “thousands of dollars” it costs you to heat your home, it sounds like you probably have too much home or can’t stand to be a degree below 72. It doesn’t cost that much to heat a moderate home.
Also, unless you’re close friends with Rip Van Winkle, gas prices haven’t been at a dollar a gallon for quite a while now. It hasn’t alll of a sudden more than doubled.
Also, for everyone else: this is exactly the mindset that will keep you poor. Complaining about a problem over which you have no control will get you nowhere. Try focusing on coming up with constructive solutions. This is far more productive.
by Andy Rodger, on May 26 2007 @ 7:42 am
While I agree that a $4 increase to fill up my tank is not a backbreaking expense, taken over the course a year that’s $208 if I fill up once a week. Many people have to fill up more than that due to distances to work, family activities, having a social life, etc.
Like in your response to the previous comment, maybe the people that use this much gas have “too much” car, but it’s not as simple as going out and buying a new one.
I think that what it comes down to is that with all of the things that families have to pay for - college tuition, groceries, mortgage, taxes, clothing, etc. - it is disconcerting for people to see wildly fluctuating prices at the pumps.
Side note: even though the previous high for gasoline was around $3.07 and now it’s around $3.22, you have to keeps something else in mind. Late last year and earlier this year, prices near where I live were in the low $2 area. Now, if they are up to the mid-$3 range, I am paying a buck and a half more PER GALLON (approximately) for the same gas, which translates to a lot more than $4 extra per visit to the gas station.
Thanks.
by limeade, on May 26 2007 @ 8:22 am
Thanks for your thoughts. I understand that fluctuating gas prices can be very frustrating and can put a strain on finances. Since it’s something that’s out of our control, what I’m trying to get across is that we should take other steps so that it isn’t so much of a strain.
How much car you buy is in your control. You have the choice between regular or premium cable TV (or no cable at all). People also continue to buy all sorts of new electronics (flat panel TVs, iPods, smart phones).
Granted, some things you can’t change right away, but there are steps you can take. When the time comes to get a new car, you can scale back. Once your cell phone contract runs out, you can then choose to scale back.
Proactive steps will help the situation much more than complaining about high prices.
by Escape Brooklyn, on May 26 2007 @ 10:17 pm
Good post and thanks for referring me here! I think people have many options to ease the burden of higher gas prices on an individual level, including taking public transportation, buying more fuel efficient cars, biking instead of driving, car pooling, moving closer to work or working closer to home, and combining trips so as to not drive so much. But no matter what we do individually, higher prices will still affect us as the price of our goods go up. =(