We Pay More For Gas Than Ever
February 4th, 2013 1:28 PM Share
You think gas is finally getting cheaper? Cars that use less gas may be a bit more expensive, but save you money in the long run? Households in the United States spent a record amount on gasoline last year, the U.S. Energy Information Administration said on Monday. More of your income is going out and exhaust pipe than at any time since the 1980s.
The average household expenditure on gasoline stood at $2,912 in 2012, the EIA said, approximately 4 percent of pre-tax income.
“Although overall gasoline consumption has decreased in recent years, a rise in average gasoline prices has led to higher overall household gasoline expenditures,” the EIA told Reuters.
Published February 4th, 2013 1:28 PM
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8 of 89 comments
Well, duh. Income growth for the middle class has slowed, been slowing for 20 years but really slowed last 6. Do some research "reporters".
Welcome to the global economy, where 1.3 Billion Chinese & 1.2 Billion Indians (along with other emerging nations) aspire to drive vehicle, just as we in the Western world have enjoyed for the last 50 years. The simplistic economist in me says that if someone is willing to pay USD 100 per barrel, then oil companies will sell it at that price at not to the person only willing to pay USD90 per barrel. Yes, I know there are complexities but at the heart of oil prices is supply and demand, and I think OPEC have lost control of the supply curve, as demand is so high. Its not the 1980's any more...
"Households in the United States spent a record amount on gasoline last year" Not mine. Round trip commute - 6 miles plus rode the bike to work all summer and most of spring/fall. The fairway market is right next to my apt. We can walk to get groceries and actually buy less crap since we have to carry it back home. The train station is 0.2 miles away when my wife and I visit the city(NYC). /endsmug Everyone needs to move closer to work if they have a chance. You would not believe how great it is to reach home in 15 minutes irrespective of traffic.
Some of what sandman4x4 wrote I agree with, people will pay high prices for fuel. But the cost of energy has a major impact on GDP. I can forsee big changes in the near future on the way all resources are consumed. It is also inevitable that the standard of living in the US/Euro/Japan will have to decrease, as it has been. The US exporting coal isn't going to be as easy as some think. You have to break into the existing markets. Australia is the largest coal exporter in the world and is quite close to these new developing economies that will be driving the global economy. The also figure Australia will be the largest exporter of natural gas within a few years in the world. Last week an oil field was found in Australia that could contain 223 billion barrels of oil, you are talking Saudi Arabia size, $20 trillion. Even if the find is much smaller it appears Australia will also become a major oil exporter. Australia is the worlds largest exporter of uranium. Energy is a problem for the "old guard" (US/Euro/Japan) economies, the developing nations economies have factored in the higher costs of energy. The "old guard" has to restructure if they want to survive. Out of the OECD there will a few countries on the globe that will have increasing standards of living, they are Norway, Switzerland, Hong Kong, Singapore, Australia, and Canada. The US/Euro/Japan economies will still be significant, but much less influential. The US dollar used to be the currencies that commodities were priced at but that will gradually change. The US will have to manage flucuating prices as well. All commodities and resources are going to have to be spread thinner, which drives the supply-demand side. Prices will only go up. CNG will not be the saviour of the auto industry, look at the subsidies that are directed toward purchasing of these vehicles. We already have the technology, so if it requires subsidisation it will fail or drain the US's coffers. The economic future of the US/Euro/Japanese will be more challenging than ever, I just hope they can work it out. I just hope the people are ready.