Gas prices from both sides

Posted at 12:45 PM on October 29, 2008 by Bob Collins (5 Comments)
Filed under: Energy

Gas price perspective:

Nearly a third of Americans are cutting back on vacation and travel plans for later in the year, and 27 percent are cutting back on eating out because of record-high gas prices, a retail survey found Tuesday.
-- CNN, 5/19/04 when gasoline hit $2 a gallon .

It is worth repeating that based on price moves that have already happened, the average household is going to reduce its spending on fuel, including transportation fuel, by $4,800 per year. Include the savings to the consumer from price decreases of other raw materials and the average household will spend $12,000 less in the next 12 months. This $12,000 increase in the family budget will not be taxable income, it is more like found money.
-- Seeking Alpha. 10/28/2008 "Relief is on the Way."

The average price of gasoline in Minnesota today is $2.20, but there are plenty of stations selling it for as low as $2.04, according to MinnesotaGasPrices.com.

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Comments (5)

"Include the savings to the consumer from price decreases of other raw materials and the average household will spend $12,000 less in the next 12 months."


What level of household income is this based on? It doesn't sound plausible.

Posted by bsimon | October 29, 2008 1:23 PM

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At $60 per week. If you fill your average size car up once a week, thats $3200 per year. Prices are nearly half of that. So that's $1600 per year. Then if you have 2 cars, it's doubled again. Now if you have a less efficient car, it would be more. So, the average is anywhere from $3000-$5000 per year for a 2 car family. $1500-$3000 per 1 car family.

Posted by JB | October 29, 2008 1:31 PM

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At $60 per week. If you fill your average size car up once a week, thats $3200 per year. Prices are nearly half of that. So that's $1600 per year. Then if you have 2 cars, it's doubled again. Now if you have a less efficient car, it would be more. So, the average is anywhere from $3000-$5000 per year for a 2 car family. $1500-$3000 per 1 car family.

Posted by JB | October 29, 2008 1:31 PM

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I've always wanted to find $12,000.

Posted by Joel | October 29, 2008 3:15 PM

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And here I was happy to see gas go down to $2.66 from $2.76.

Posted by Alanna in MI | October 30, 2008 8:29 AM

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