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Four dollars and still going… May 13, 2008

Posted by Matsu in News, News and politics, Random.
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Gas sign - pricing by datesYes, today for the first time in my life I paid $4 (US) for a gallon of gasoline. It was actually $4.05 per gallon.

Those of you who live in the same area that I do will wonder why I paid that much since most gas stations are selling regular unleaded gas for only $3.85 or $3.90 (at most). Well, I drive a Mistubishi Galant and the model I own has a V6 engine, which requires the high octane super unleaded gasoline. And, for now, the cheapest price I could find today was just over $4 per gallon. That is the most I have ever paid for a gallon of gasoline.

I guess I’d better get used to it. Or, more accurately, I’d better get used to paying a lot more than $4 per gallon as the price is expected to continue to rise throughout the summer. In fact, we may even see $5 per gallon of gas by August. Ugh! That will be almost twice the price I paid for a gallon of gas a year ago.

My friend Bert insists that the price of oil is being driven up by the weak United States dollar. He argues that if the value of the U.S. dollar were to go higher against the other currencies in the world, then the price per barrel of crude oil could drop as low as $80 (it is at an all-time high of $124 per barrel right now). I don’t know if I really understand that or believe that he’s right, but I would sure like to see it happen just the same. I won’t argue or complain if it does.

This is an interesting sign. Can you guess which year this sign will appear?

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Comments»

1. Pedro Pinheiro - May 14, 2008

Today here in Portugal it was on the news that gasoline and diesel prices just went up another € 0.03 per liter. Average price of regular gasoline will be € 1.479 a liter, and diesel will be € 1.369 a liter.

If the US dollar was par with the Euro, this would mean a gallon of regular gasoline here cost $ 5.59, and diesel $5.17.

But the dollar, as you pointed out, is not par with the Euro, which is worth $ 1.54 right now. That makes each gallon of regular gas here $ 8.60, and diesel $ 7.19.

I can tell you that it’s a little bit sombering each time you go fill your car up (and were talking about a 13 gallon diesel tank on my RAV4) to pay almost $100.

We do have the advantage of having invested in cars that get much better mileages that the average US car. My diesel RAV4 gets 28MPG (with the way I drive it, lots of city driving), and my wife is getting an Opel Astra with a 1.3 liter diesel engine that is rated for 46MPG on for mixed urban/road usage.

Having said that, I don’t think the prices are high enough as they are – I still see people driving in ways that completely waste fuel.

2. Moose - May 14, 2008

Matsu’s World: The One Less Traveled

So, I guess with the price of gas, it really is the one less travelled, huh?

3. JD - May 14, 2008

I agree with Bert. Whenever you hear the fed lower interest rates, think devalued US dollar and inflation or transfer of wealth from the middle class to Wall Street. Why is it that the middle class should subsidize Wall Street with high food and gas prices? But it could be worse in Zimbabwe it takes 250,000,000 Zimbabwe dollars to buy one use dollar.

4. Matsu - May 15, 2008

Moose — THAT is funny! Yup, the world just got a little bigger and less traveled.

5. Timorously - June 19, 2008

Somehow i missed the point. Probably lost in translation 🙂 Anyway … nice blog to visit.

cheers, Timorously.


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