Gasoline averages over $4.07/gallon in U.S.
Posted By RichC on June 23, 2008
Its not like the subject headline is a big surprise to anybody that drives? Duh … but $4 and near $5 fuel prices do get one thinking about where our citizens are getting the extra money to buy fuel? According to AAA, the national average price for gasoline is $4.07 and diesel at $4.77. (a painfully wide 17% or 70 cent premium for diesel fuel)
I suspect most Americans have opted to reduce their driving a bit, although when hearing the low percent numbers I’ve been surprised it is not more. Others suggest that we are doing what our federal government does … borrow. Yet at a time of tighter credit the already stretched consumer might have already borrowed to or near their limits. Credit cards can only take so much when the gas pump regularly goes over $50 a fill up. Eventually the consumer will have to reduce spending in other areas … especial non-essentials. First to feel this are companies like Starbucks who sell a premium priced morning cup of joe. Its an easy place for many to save a few buck a day as most home kitchens and offices have coffee machines. Strapped consumers can cut these kinds of luxuries.
Another area we Americans are cutting back on is how we spend our entertainment dollars. Vacations are sometimes eliminated, reduced or just delayed and those dollars used for fuel. Kelley Blue Book did a survey which indicated that we have stopped purchasing DVD and CDs (28% stopped buying) and opted to rent. Some sports fans have decided the luxury of going to the ballpark is a place to cut back and others have reduced their eating out (6 in 10 people “say” they are eating out less), although its difficult to tell while visiting Florida last week.
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ABC polled consumers recently and 77% believe the economy is getting worse and that gas prices are causing the problem. The majority now believe we need to do more to explore and drill for oil in our own country … I believe that this will be the deciding factor come November elections.
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