Saturday, January 26, 2008

Robbery at the Pump: Gasoline Cost Up 85 Cents

gas gasoline higher energy costs 2008 higher food costsAccording to the Department of Energy, the average price of unleaded gasoline is up 85 cents from last year at this time to $3.017.

That's a lot of money leaving American consumers' pockets every time they visit the pumps.

So doing some fancy math, let's look at what this may mean. If America uses 385 million gallons of gasoline every day, a year's worth of .85 increased price equates to a staggering $119.4 Billion dollars (385M x 365 x .85) increase in gasoline costs to the American economy for a full year.

So will we see this nearly a $1 more a gallon price continue?

As the full impact of $100 and higher crude oil, lack of refinery expansion and fears of peak oil, American motorists may soon see even higher gasoline prices. And of course, the impact of higher energy costs affects consumers as prices increase for food, clothing and other consumer goods.

The "economic stimulus" package now being proposed by Congress and the Administration may help put money back into consumers' pockets. But it pales in what was taken away by the higher oil costs.

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