No Thanks To $100 Fill-Ups
I’ve been talking about the rising price of gasoline for a while now at Boom2Bust.com. Luckily, it hasn’t affected me much as I drive the “Flintstone Mobile,” a 1995 Toyota Corolla with almost 170,000 miles on it. Still, I feel bad knowing that a good number of the nearly 32 million Americans who will take to the road this week for the Thanksgiving holiday will pay $100 or more to fuel their vehicles. According to CNBC this morning, the national average for regular unleaded gasoline stands at $3.10 per gallon, which is 10% higher than in the past month, according to AAA and the Oil Price Information Service (OPIS). In my October 26 post, I mentioned that CNN Money had said some experts were predicting $3 gasoline before the new year. Old news. Now, some analysts are predicting gas prices could hit $3.50 by the end of the year, as the recent spike in crude oil and wholesale gasoline prices trickles into the retail market. If they are correct, this could surpass the all-time high of $3.18 reached back on May 18 this year.
Traditionally, gasoline prices move lower this time of year because refiners switch to processing crude into heating oil for the winter months. However, wholesale gasoline prices have also jumped nearly 10% since mid-October. Anthony Grisanti, a gasoline trader at the New York Mercantile Exchange, told CNBC that:
The window we had to push prices down (during turnaround season for refiners) is nearly gone. If oil prices stay up here, we could see $4 gasoline by the spring.
Economists point out that high gas prices act as a drag on the economy. The more they rise, the more consumers have to spend on fuel and the less they have to spend on other goods and services, which drives the U.S. economy.
CNBC noted that for a number of drivers, the cost of filling up their vehicles is hitting $100 or more. Based on calculations by Bankrate.com, it costs $108.50 to fill the 31 gallon tanks on your base model Chevrolet Avalanche or Suburban. If you own a base model Ford Expedition, you’re in luck, as the 28 gallon tank costs only $98 to fill up.
Should gas prices keep on rising, you may want to consider buying your own Flintstone Mobile…
November 21st, 2007 at 10:28 am
I guess my next car won’t be an Expedition! I see why there is a need for the bigger vehicles, but what kills me is when you see someone driving around in their Suburban all the time with no passengers to justify it. Well, I just hope they have the cash to keep it up, and if so more power to them.
November 21st, 2007 at 11:20 am
The sad part, like you mentioned, is when there is a need for the bigger vehicles. I worked for a fire department for a few years, and we purchased Ford Expeditions to serve as a command car and in other roles. The police used similar vehicles as well. Now I think of how much more it will cost the town and its residents to keep these vehicles fueled and ready to go. Thanks for the comment…