Cost of Fueling Up Continues to Rise

Car

Even though we are still nearly twenty days away from the summer solstice, summer activities are in full swing. Majority of us probably caught the summer bug long before Memorial Day. Everyone is excited to think about the great shining outdoors, summer excursions, picnics, and barbecues. Something common for summer that may leave people a little less enthusiastic—rising gas prices.


Never fails, just as the vacation season picks up speed, the rates at the pump start creeping up. Oil companies love the extra boost from seasonal travels. Although this year other major holidays saw a loss when it comes to travel and tourism, there are still high hopes that summer travel will be strong. Many of us can probably say that our “mail boxes,” have had a few more invites that require a little extra drive to attend.


So it comes to no surprise to any of us that gas is on the rise, but the percent of the increase is rather astounding. In just two months gas prices have jumped 36% topping a barrel up above $64.00. OPEC has determined that the prices could rise to nearly $80.00 a barrel by the end of the year. For those of you doing the math—well lets not be depressing and actually list that percentage increase.

It seems from the articles around that OPEC is of course highly pleased with the turn of oil—no one expected otherwise, but the ferocity of which they are pursuing these figures is rather disheartening. Although I knew that gas companies and oil suppliers were opportunistic and generally looking to make a quick buck, I thought for some reason that oil prices were driven much more by the supply and demand of the global economy. As it turns out, artificial demand created by OPEC works fairly well too.


OPEC is sitting on storage tankers filled to the top—in hopes that later this year we will see an economic recovery. Once that occurs, they can release that oil without seeing a dramatic loss in profits. So even though supplies are up and demand is low—prices will continue to climb. Luckily for the oil companies, I doubt we will see too many people cutting back on their weekend trips, boating, etc. just to save some money.

Moral of the story—blow for blow, expect to pay a lot at the pump. If you are feeling frisky, take the bus, walk, ride a bike, or car pool. For those of you who live out in the country where its eight miles just to get into town—maybe your tractor is better on gas than your pick up truck!


eelliso1 is a contributing writer for projectgroupthink.wordpress.com. Get instant updates for this blog via Twitter: PGTblog.

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5 Comments

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5 responses to “Cost of Fueling Up Continues to Rise

  1. KevinKMJr

    You will have to excuse my lack of sympathy on the subject of gas cost, but we are a very wasteful people when it comes to gasoline.

    I have a friend that wines and moans that our local public transit system is not sufficient for most peoples needs. I point out time and time again that the transit system used to include many more busses, spanning a larger portion of the county, and running much longer hours. We do not have this priviledge anymore because everyone wanted their own car to take them from precisely point A to Point B exactly when they wanted to leave and arrive. this led to everyone owning their own car and CHOOSING not to ride the busses.

    Again supply and demand comes into factor. the demand for the public transportation system became almost non-existant, so they decreased the available service because they were bleeding money trying to maintain it.

    Please finish reading the end of this paragraph before your head explodes. Gas cost rising is a good thing. I hear heads exploding already, lol. It is a good thing for two reasons, so please hear me out. First, we’re going to run out. The more expensive it is, the less we may buy, and the longer it will last. Second, the more expensive it is, the more we look for alternatives. I doubt that anyone on this forum would argue that we don’t need a cleaner and more renewable fuel. We may not want to pay these outragious costs at the pump, but it may be the only way that we, as a community, will be willing to advance to something better.

  2. Po

    I have to agree with Kevin 100% on this one, well said.

  3. America’s gas woes stem from our distance from everyone and everything. Instead of people living in towns, where work, school, shopping and healthcare is all close together, we live in bum-fucking-nowhere.

    There’s a good reason for this. Back in “the day,” the only way for a man to pull himself up by his bootstraps was to own land and farm it. That and the governmental encouragement of “manifest destiny” spread Americans far and wide.

    Don’t do too much farming these days… and living in many cities is less expensive thanks to urban blight, effectively lowering home values and rent prices.

    If people carpooled more often, and planned their day trips more wisely, they would save quite a bit of money on gas.

    I won’t complain about high gas prices— it actually saves lives and forces people to buy more fuel-efficient cars. When I spend less than $40 to fill up my tank, however, I can’t help but to smile and buy some Slim Jims.

  4. Po

    Jake, I think the root of America’s gas guzzling problem is primarily due to suburban sprawl. People have chosen to live in the burbs’ for that safe apple-pie wet American dream… even if it’s costing them an extra hour per day of driving. Europe to my knowledge doesn’t have much suburban sprawl and they’ve been able to create an extremely efficient mass transit system.

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