Gas prices - OUCH!

[Mopsquad]

Personally, the increase in gas prices just has me reallocating funds in my budget.  An extra $60 per week that gas costs me now can easily be taken from another frill like eating out or some purchase that would be put in the 'I really don't need it that bad' category.  My Hellcat loves gas but I've learned to chill out a bit on the accelerator.  I'm adapting to the changing environment.

What does have me concerned is the increased costs to truckers and other transportation agents.  Those individuals really don't have any way to re-allocate. 

Second, yes home energy and business energy costs are a big one.  Having alternative energy is a romantic thought but it's not realistic and certainly not sufficient for the growing demands of this country. 

I'd love to have a one on one with AOC and really pick her brain - see if she really knows what she's talking about.  I'm open to all discussions as long as they are informed and truthful.

[cuda hunter]

I'd have a one on one with aoc as well..   

[FSHTAIL]

That's great that you have the ability to allocate funds. 
The check to check people that are already doing without don't have very many options

Personally, the increase in gas prices just has me reallocating funds in my budget.  An extra $60 per week that gas costs me now can easily be taken from another frill like eating out or some purchase that would be put in the 'I really don't need it that bad' category.  My Hellcat loves gas but I've learned to chill out a bit on the accelerator.  I'm adapting to the changing environment.

What does have me concerned is the increased costs to truckers and other transportation agents.  Those individuals really don't have any way to re-allocate. 

Second, yes home energy and business energy costs are a big one.  Having alternative energy is a romantic thought but it's not realistic and certainly not sufficient for the growing demands of this country. 

I'd love to have a one on one with AOC and really pick her brain - see if she really knows what she's talking about.  I'm open to all discussions as long as they are informed and truthful.

[Mopsquad]

That's great that you have the ability to allocate funds. 
The check to check people that are already doing without don't have very many options

Personally, the increase in gas prices just has me reallocating funds in my budget.  An extra $60 per week that gas costs me now can easily be taken from another frill like eating out or some purchase that would be put in the 'I really don't need it that bad' category.  My Hellcat loves gas but I've learned to chill out a bit on the accelerator.  I'm adapting to the changing environment.

What does have me concerned is the increased costs to truckers and other transportation agents.  Those individuals really don't have any way to re-allocate. 

Second, yes home energy and business energy costs are a big one.  Having alternative energy is a romantic thought but it's not realistic and certainly not sufficient for the growing demands of this country. 

I'd love to have a one on one with AOC and really pick her brain - see if she really knows what she's talking about.  I'm open to all discussions as long as they are informed and truthful.

I can't speak for those people and I aware that that demographic is growing.  It's terrible I agree.  There is no cookbook answer, I'm speaking personally that I've just cut back on unnecessary spending and used those funds to keep gas in my classics. 

[JH27N0B]

Federal minimum wage is still $7.25 I believe.  I know many states are higher, but still you have to feel for people who would have to work an hour to buy barely over a gallon of gas.
Others can say well I guess I might just cut back to only one glass of Chateau Lafite when I go out to eat at my favorite 4 star restaurant.
And some it doesn't phase them at all.
I was talking to a friend of mine who is an A&P mechanic working for a family owned corporation that owns two business jets.  I asked if they were cutting back on flying the jets and he said no, not really.  He said fuel is just one component of owning the planes, and that conversation got me thinking a bit about my own malaise about fuel costs skyrocketing.
Maybe those jets cost $10,000,000 a year to operate between fuel, hanger, insurance, loans, maintenance, salaries for him and the pilots etc.  Maybe fuel is 10% of that cost.
Fuel doubles, but the yearly cost of the jets doesn't double, if everything else stayed the same, the costs go up 10% not 100%.  This year they will have to spend $11,000,000.
I am not eager to drive my 6.4 Ram that gets around 16 mpg and am driving my old beater Dart a lot this year that gets about double the mpg.  But the costs to own the Ram haven't gone up 90% this year, only gas is.  I have a $500 monthly payment, insurance might be $600 a year, plates are $200, oil changes etc.  If I drive it 5000 miles a year that is 312 gallons of gas.  Last year if gas averaged $3.25 here, that was $1015 for gas.  This year, if gas averages $5.75 that will cost me $1800 for gas.
But my "fixed costs" if you include an oil change and some other odds and ends are about $7000.  So last year it cost me $8000, and this year about $8800.  Like operating those jets, my cost has gone up 10%.  It only feels like it has gone up close to double because filling up in the most visible of costs.
Anyway, thinking about what my friend told me about his employers jets got me thinking about the "big picture" and helped put things in perspective.
Another $800 a year won't kill me.  I'm losing that on paper with my stocks and bonds by the hour in recent months. 
It is the people at the lower end of the financial scale that really suffer from inflation.  When you live paycheck to paycheck, if your costs go up then you don't have the money to spare and suffer.

[Katfish]

Your math is a little off, gas isn't the only thing that's gone up.
Have you changed your oil lately, I just paid over double, that's a 100% increase for the oil and filter to change my daughter's oil.
If you shop for groceries, you realize that has gone up 15-25% too.
As mentioned gas is the most visible, because it's needed all the time
Our whole economy is based in 1 form or another on petroleum and the products derived and delivered.

This is a nightmare in the early stages

[dodj]

Federal minimum wage is still $7.25 I believe.

Minimums are set by province here in Canada but I think $14 is the lowest mw now. Just FYI.

[soundcontrol]

 

[anlauto]

The big question is....WILL THEY EVER GO BACK DOWN to where they were six months ago, or a year ago ????

Regardless of the excuses why the prices have doubled, if the big companies see that we still have to buy it no matter the price, why would they ever lower it again ?

If you use to sell Mopar project cars for $5K, then you raised your price to $10K then $20K and people were still buying them....then why the heck would you ever give them away for $5K again ???

[torredcuda]

If it stays at $5 + a gallon do you think people will start selling thier big gas guzzlers and buy smaller cars or EVs similar to the gas crisis of the `70`s when sub-compacts become hot sellers or will we just suck it up and pay the prices?

[HP2]

The big question is....WILL THEY EVER GO BACK DOWN to where they were six months ago, or a year ago ????

Regardless of the excuses why the prices have doubled, if the big companies see that we still have to buy it no matter the price, why would they ever lower it again ?

If you use to sell Mopar project cars for $5K, then you raised your price to $10K then $20K and people were still buying them....then why the heck would you ever give them away for $5K again ???

Yes, it will go down because it is a commodity whose availability and demand is always variable, unlike a classic Cuda of which no more are being made and demand remains high.

For example:
GW Bush's administration saw gas prices rise from a low of $1.48 to a high of $4.09 via their policies and the global war on terror. A global recession in 2008 drove it down to $1.71. 

BH Obama's administration took over at $1.71, and saw a peak price at $4.12 due to the recovery from the recession. By the end of this administration, it was down to $1.87.

DJ Trump took over at $1.87 and prices slowly increase to $3.05. During a global pandemic, prices dropped to $1.91. When he left office it was back up to $2.49.

So in this century there is a constantly shifting range of prices. While high now, they will come down. Of course, they could also go higher if the hurricane season is bad and refineries are impacted and demand continues to increase.

The freedom of easy mobility is actually a fairly recent development that only came about in the last 4 generations. Prior to that, not everyone could afford a horse or a mule, a barn, and the feed to take care of it. Will cars eventually head that way too, I dunno?

[EDL94]

This was on the pump today. First I have found under $5.00 for a while.

[JH27N0B]

The best hope now for prices to come down is demand destruction, and that may be starting to happen.
Basic laws of supply and demand.
But even if that happens, it surely won't be permanent and prices will jump when demand increases.
The underlying issue today that I don't see reason for hope of improving is that we've lost refinery capacity, and due to the hostile political environment towards carbon fuels and uncertain future outlook for gas and oil with the push toward EVs, no new refineries will be built, and it's questionable if some shuttered during the pandemic demand crash of 2020 will ever be up and running again.
So not enough gasoline being produced to satisfy demand equals a lot of problems going forward. 

[MKA]

I would guess prices will stay above $5 thru the summer.  Now we have a refinery capacity issue on top of the supply issue.  The shale producers are starting to ramp up.   Would think relief below $4 is on the way in 6 - 12 months but I wouldn't expect to see prices below $3 dollars ever again.  The shale producers need prices in the 3-4 dollar range and without Russia they will probably stay there.

I would also expect this will drive more to smaller cars or EVs. The manufactures seem to all be going the EV or hybrid route.  but also more to other energy efficiency devices if people can afford the premium cost. In the last 4 years, I replaced my AC unit with a high efficiency heat pump, my pool pump to variable and my water heater to a GE hybrid (heat pump).  Net cost was $13K with the ac being $11K of that.  Annual savings were about 1600 dollars.  Pays for itself in less than 10 years and all those things have a useful life beyond that. 

The government needs to do its part to help drive scale.   Purchasing hybrid car fleets and postal trucks etc.  Saw something where the post office was going with gas guzzlers for the cheaper upfront price can't imagine that math is still working and even if it does they should be leading if they are going to mandate for the rest of us.

I'm Pretty happy with my 2018 GMC truck (sorry) it has the 6.2 liter with the motor that cuts to 4 cylinders when not needed.   I  average 20 mpg which beats the heck out of the fords I used to have that only got 13 mpg max.   I understand they do it thru the lifters and that can be a problem later but for now I am happy with a V8 getting 20 on average.   

So yes would expect both the supply and the demand side to help but it's going to take time. 

[JH27N0B]

My 2021 Ram 6.4 crew cab has shown over 20mpg on the dash readout on highway trips and it's average since I bought it is over 16 mpg.
My back of napkin calcs when I fill up is that the dash readout is a bit optimistic, maybe by as much as 1 mpg. But that's still very impressive for a 3/4 truck! My 95 Ram 1500 "day cab" 5.9 averaged 13-14 mpg with 17+ highway. And it replaced a 79 Bronco 351 2 bbl that barely had enough power to get out of its own way and got 8-9 mpg (with a tail wind  ).
So engine technology has come a long long way, and I hate to see it getting tossed out the window going all in towards EV, which I don't see as practical for most. Or nearly as "environmentally friendly" as they are claimed to be.
I work for a truck and bus OEM and there's a big amount of work going on now with EV.  During a team meeting earlier this week I asked my boss if anything else is being worked on that he knows of, especially hybrid. Hybrid is the only way I see to improve things that is practical.  He said he thought some work was being done with hydrogen, but otherwise no.
I'm glad I'm getting close to retirement is all I can say on that.