How are most working people coping with the increases in GASOLINE PRICES?

Question

How do you think that drivers in the USA, especially average income or below average people are coping with the sudden rise in gasoline prices at the pump since hurricane Katrina?

From the news, I have gathered that the demand for gasoline has actually increased slightly since last year, which I understand is a normal increase percentage wise.

However, to cope with higher prices at the pump, are the majority of drivers shifting a lot more gas purchases to credit and delaying paying the increases?

Has there been a large increase in the sales of new and used more fuel effecient vehicles and a noticable increase of used and new gas guzzlers for sale?

Is there a possibility that all of this credit used for gasoline purchases will become too much of a burden for some, eventually causing a rise in interest and provoke mild inflation?

How can the US economy continue to asorb the added costs of fuel without a eventual sharp rise in the cost of goods and services?

Answer 1

Ok, I work for the oil companies, in the tar sands, they make money at between 7-14 $ a barrel. What is it now? 50? 60?

They are gouging, Katrina was a hoax as far as gasoline is concerned. They, or perhaps we (read governments) need to build some refining capacity of our own so we aren't held hostage by big oil.

As far as the little guy, I parked my Hemi powered truck and just bought a Honda Accord. 44 Miles per Imperial Gallon, made in Canada, can't really go wrong. Ford Fusion is ok too, mileage isn't quite as good though.

People will pay what ever it takes to drive, some make good choices, some unfortunately have few choices, but it doesn't kill you to walk, or bike, or bus.

I have done all 3 this year and I own 4 cars. (3 V8's sadly)

Answer 2

Wow, where to begin... First lets look at a couple factors.....

I just got a bid for a price change based on gas going up. They wanted an additional 25 dollars due to gas going up by 35 cents a gallon since our last bid talk. By the end of our conversation I received 50 dollars off of our bid. Thats right I shot down their increase and let them know that I would pull the plug totaly if they didnt drop the price. Why? At 35 cents extra per gallon I made them prove to me that they would be using more than 70 gallons. Remember they wanted 25 dollars, do the math, thats 71+ gallons.

Most places have already had increases or changes.

Milk has gone up a lot due to the cost of delivery
Buy a car lately? check out the delivery charge, used to be only 300 but has shot up a LOT lately.
Ozarka charges 2 dollars a delivery no matter what the order.

Me, my prices stayed the same. I just moved my percentages for profit and cost. I make less money but I can say that my prices have not changed due to gas... Im a photographer who does on location shots so a LOT of my time is driving to different locations.

Answer 3

It's easy at $4.33 on a salary of $70,000 in San Francisco a worker is spending 4% of thier earnings on gas. Actually when I lived there I only tooki my car out about once every two weeks. At the same time Billy Bob is spending 15% of his $30,000 salary at $3.15 a gallon.
Point is that Billy Bob doesn't mind and will go out and buy another Gas guzzler when this one wears out. All of the hundred poorest counties are in Red States.

You can fool some of the people all of the time

Answer 4

Dear Middy S,

Any price is a function of supply and demand. The gasoline is no exception. It will continue going up as the demand is going up faster than supply. And higher price make people think twice (and some of them even three times) before they hop into their gas-guzzling Silverados, Explorers, Tahoes, Hummers, Expeditions or Rams and drive two blocks away to buy a newspaper or a cup of coffee.

Answer 5

"Has there been a large increase in the sales of new and used more fuel effecient vehicles" No basicly I am keping the paid off car as long as it runs - no car payment I can afford gas even if the car does not get as good milage aas I would perfer. Bottom line is X amount of money spend it on a car payment or gas. Or I can spend the kids inheritance monies.

mathmaticaly you can not justify spending 15k to 20 k on a new car to offset a few dollars saved in gas over the course of 5 - 7 years. I think more people are going to run their cars till they quit.

Answer 6

It's not big deal. Sure it would be nice if they were lower. But gas prices are gas prices. Other Western nations are paying perhaps 33%-50% more than we are, it's just the times we live in. Everything is more expensive. Instead of worrying about lowering their prices, we should focus on how we can get rid of SUVs.

Answer 7

Therapy

Answer 8

I'm coping just fine, and I hope it rises. Why don't we spend all those trillions of dollars being spent in Iraq on an alternative fuel instead?

Answer 9

Wal-Mart already noticed a rise in prices they announced. Goods are going up because of increases in fuels. Soon other Countries will have to look to OPEC for aid in floods and natural disasters because the United States will be broke trying to help us here, at home. We won't be able to run to the aid of everyone around the world in their aid, they'll have to make deals with OPEC like the Mafia.

Answer 10

Do you really believe WHAT YOU ARE TOLD? Did you know that Exxon spent BILLIONS investing in getting gas from oil sands in Canada that are ONLY profitable if the price of gas is HIGH? Now why would they do this investment when the price of gas was low? IS it just a coincidence that after they invested the gas price went up? Interesting: they invest, gas prices go up. Otherwise they would have lost millions. Just one sand truck costs 25 MILLION. Look it up.