Autoblog

US families spent an average of nearly $3,000 on fuel last year

Jeffrey N. Ross — Tue, 05 Feb 2013 13:31:00 EST

Filed under: Government/Legal, Earnings/Financials

Does it feel like more of your paycheck is going to pay to fuel up your vehicle? According to the US Energy Information Administration, it is. Last year, the average US household paid $2,912 for gasoline, which represents almost four percent of the average household annual income. The government agency notes that this is the highest percentage of household income spent on fuel in almost 30 years (save 2008, when the numbers were similar).

Oddly enough, US gas consumption fell to its lowest level since 2001, but gas prices have risen dramatically over the last couple of years to take a bigger bite out of our paychecks - 26.1 percent alone in 2011 and another 3.3 percent in 2012. Last year's 3.3 percent fuel price increase was slightly more than the 2.9 percent increase in household income. The one thing we can't blame this on is modern cars. Despite the fact the average US household's travel has increased "significantly" since the '80s, vehicles are now more efficient than ever.

US families spent an average of nearly $3,000 on fuel last year originally appeared on Autoblog on Tue, 05 Feb 2013 13:31:00 EST. Please see our terms for use of feeds.

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How this summer's drought might affect your car's gasoline

Chris Tutor — Wed, 14 Nov 2012 18:30:00 EST

Filed under: Government/Legal, Earnings/Financials

In 2007, then-president George Bush signed a law that required increased production of ethanol. Swelling ethanol demand for fuel combined with this past summer's drought has driven the price of corn (used to make ethanol) up. In fact, prices have swollen some 400 percent in the last seven years. That's comforting for corn growers, who are dealing with much smaller yields than normal. But it's not comforting for livestock producers, poultry farmers and grocery shoppers.

Under the law, the amount of ethanol used in gasoline is supposed to increase to 15.2 billion gallons this year, up from five billion in 2007. The Environmental Protection Agency can decide to delay the increase, however, and it has until Tuesday to consider the circumstances. According to The Detroit News, governors from eight states have asked the EPA to waive the ethanol requirements to prevent corn prices from going any higher. They join almost 200 members of Congress, top United Nations officials, two dozen scientists and scores of poultry farmers in opposing the boost in ethanol production. Governors of poultry-producing states Maryland and Delaware say without a waiver, thousands of jobs could be lost.

On the other side are corn-producing states and the farmers who live there. They argue a waiver would harm their agricultural income and, in turn, harm their state economies.

If a waiver is granted, gas formulations might not be affected at all. E10 gasoline (10-percent ethanol) would still be sold at fuel stations across the nation, but an increase in ethanol production would be delayed. If a waiver is not granted, corn growers will see a demand in their product. And since all that new ethanol has to go somewhere, drivers may see more pumps serving ~~E20~~ E15 gasoline (20 15-percent ethanol) which cannot be used in pre-2001 vehicles.

How this summer's drought might affect your car's gasoline originally appeared on Autoblog on Wed, 14 Nov 2012 18:30:00 EST. Please see our terms for use of feeds.

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Italians buy more bikes than cars for the first time since WWII

George Kennedy — Thu, 04 Oct 2012 15:45:00 EST

Filed under: Car Buying, Etc., Europe

In the midst of economic turmoil in Europe, more Italians are turning to bikes as their preferred mode of transportation. Such is the bicycle's popularity in Italy that purchases of the pedal-powered two wheelers have eclipsed automobile sales for the first time since World War II.

According to The Christian Science Monitor, last year 1.75 million bikes were sold in Italy, compared to 1.748 million motor vehicles. Contributing to this trend are rising fuel prices and hefty costs associated with keeping a car on the road. Gas prices recently hit €2 a liter ($9.50 a gallon), and the average cost of ownership is estimated at around €7,0000 ($9,000) a year.

There is also the sheer congestion associated with driving in many parts of Italy. Narrow roads and a high level of automobile ownership (6 in 10 own cars, one of the highest rates in the world), have made for cramped streets in many Italian cities. The author of the report notes that a several-mile journey in the heart of Rome is quicker by bike than taxi.

Fiat boss Sergio Marchionne is among those feeling the heat from this trend, admitting "Anyone operating in the automotive sector in Europe today is experiencing varying degrees of unhappiness. The European car market is a disaster." Fiat released industry figures that showed September auto sales down 25 percent compared to the same period in 2011.

Antonio Della Venezia, president of the Italian Federation of Bike Lovers told Italian paper La Republica, "People who have only ever driven cars are changing their thinking. I don't think Italy will go back to the levels of car sales that we saw before 2008."

He may be right. Many families are downsizing to just one car, participating in carpool groups, and purchasing bicycles as alternatives to the rising costs of automobile ownership. It is estimated that around 200,000 old bikes have been restored for regular use. The inexpensive and convenient mode of transportation has once again caught on in Italy - just ask Monica Bellucci.

Italians buy more bikes than cars for the first time since WWII originally appeared on Autoblog on Thu, 04 Oct 2012 15:45:00 EST. Please see our terms for use of feeds.

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Why gas stations in NJ, PA are selling $8/gallon gas in protest

George Kennedy — Wed, 12 Sep 2012 13:31:00 EST

Filed under: UAW/Unions, Russia

Over 50 gas stations across New Jersey and Pennsylvania have raised the price of their fuel to more than eight dollars a gallon. They are all Lukoil stations, and their owners have raised prices in protest of practices by Lukoil North America that they say leave individual gas station owners at a competitive disadvantage.

According to a report by the Huffington Post (full disclosure: HP is also owned by Autoblog parent AOL), the protest is a response to the high prices that Lukoil apparently charges its franchise owners for fuel. The owners of the gas stations contend that they are paying more for delivery than what competing stations are charging to the public.

Sal Risalvato is a member of the New Jersey Gasoline, Convenience, Automotive Association, and is one of the owners frustrated with Lukoil. "They essentially sell the very same gasoline to stations in close proximity of each other at different prices in order to game the market and compete with other gasoline brands," says Risalvato. The result of this practice, he claims, is pricing that may differ by as much as 25 cents a gallon between a given Lukoil station and a nearby competitor. In a business where some people drive miles out of the way for the cheapest gas prices, the effects of that disparity can be massive.

Protesting Lukoil franchise owners have upped their gas prices to eight dollars a gallon and beyond to raise awareness for these practices. Lukoil, Russia's second-largest oil producer, first arrived in the U.S. in 2003. Today there are more than 500 stations throughout the Northeast and Mid-Atlantic regions.

Why gas stations in NJ, PA are selling $8/gallon gas in protest originally appeared on Autoblog on Wed, 12 Sep 2012 13:31:00 EST. Please see our terms for use of feeds.

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You think gas prices are bad here, Italians are paying $9.50/gal

Zach Bowman — Thu, 06 Sep 2012 08:28:00 EST

Filed under: Europe, Government/Legal, Earnings/Financials, Fiat

Drivers in certain parts of Italy are currently shelling out a staggering $9.50 per gallon of gasoline, according to Bloomberg. The hefty fuel prices are largely the result of the European debt crisis. Italy has hiked fuel taxes in an attempt to get a handle on the country's public debt, which has the dubious honor of being the fourth-highest in the entire world. Of course, the jump in fuel costs has only hurt consumer spending in the country, sending Italy even farther into a recession that continues to damage Fiat earnings.

Fuel prices have increased by around 20 percent versus the same time period last year, and that jump has caused new car sales to slacken by 20 percent through the first seven months of 2012. Meanwhile, gasoline and diesel consumption has fallen by around 9.7 percent through June.

According to analysts, with gas at these prices the average Italian family is spending more on fuel than it is on food. Ouch.

You think gas prices are bad here, Italians are paying $9.50/gal originally appeared on Autoblog on Thu, 06 Sep 2012 08:28:00 EST. Please see our terms for use of feeds.

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Rising fuel prices got you down? Blame Twitter

George Kennedy — Tue, 07 Aug 2012 17:30:00 EST

Filed under: Etc., Government/Legal, Technology, Middle East

The power of social media has revealed itself today in the form of fluctuation in fuel prices based on a false tweet.

According to The Wall Street Journal, a Twitter account claiming to be Russian Interior Minister Vladamir Kolokoltsv tweeted that Syrian president Bashar al-Assad had been injured or killed. That tweet which occurred at 9:59 AM EST, was followed by two more tweets alleging the confirmation of al-Assad's death.

In the hour following that tweet, light, sweet crude prices rose from $90.82 to $91.99, and the jump took place in between 10:15 and 10:45. According to the Reuters report, the Russian ministry denies firing off the tweets and denies any connection to the account.

Price Futures Group analyst Phil Flynn pointed out "a well-placed story can move the market, and that looks like what happened." Though Syria itself is not a major oil producer, it is feared that Iran would react to the news because of their connection to and support of Assad

In the wake of sanctions imposed due to their continued participation in a nuclear weapons program, Iran has threatened to close off the Straight of Hormuz, a major throughway for ships carrying crude oil to the rest of the world.

Because of the hypersensitivity of the international tensions in the Middle East, and those trading in oils who follow the area closely, the rumor of Assad's demised spread like wildfire. The combination of Mideast unrest, and the spread of information through texts and tweets means it's unlikely this is the last time something like this will happen.

Rising fuel prices got you down? Blame Twitter originally appeared on Autoblog on Tue, 07 Aug 2012 17:30:00 EST. Please see our terms for use of feeds.

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Young motorists driving far less than even 10 years ago

Zach Bowman — Sun, 17 Jun 2012 13:03:00 EST

Filed under: Etc.

A new study by the U.S. Public Interest Research Group indicates Americans are driving less than they were a few years ago. That drop is largely thanks to young people. Those between the ages of 16 and 34 drove 23 percent fewer miles in 2009 than they did in 2001. While it's tempting to attribute the decline to the recession, the study suggests the decline may continue even after the economy picks up pace. Factors like steeper fuel prices, more readily available public transportation and a shift in priorities are likely to continue to allow young drivers to cut down on their time behind the wheel.

The study cites one poll that found a full 45 percent of those between the ages of 18 and 34 have moved to replace driving with other modes of transportation. By comparison, only 32 percent of older drivers have done the same.

Is this bad news? Not from our point of view. Our aging highway infrastructure is constantly struggling to keep pace with the volume of cars on the road. With more drivers opting for alternative transportation, there's bound to be less traffic and more room for those of us who actually prefer driving. Throw in decreased demand for gasoline, and we may even see fuel prices stay manageable in the near future. All hail the new generation.

Young motorists driving far less than even 10 years ago originally appeared on Autoblog on Sun, 17 Jun 2012 13:03:00 EST. Please see our terms for use of feeds.

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Values of small used cars fall in lockstep with gas prices

Zach Bowman — Thu, 31 May 2012 09:15:00 EST

Filed under: Car Buying, Hybrid, Etc., Earnings/Financials

The Detroit News reports used small-car prices are plummeting right along with fuel prices. The news comes courtesy of a National Automobile Dealers Association study, which says gas prices have dropped an average of 3.5 percent compared to last year. In yet another shocking reminder of just how short buyers' memories can be, analysts predict light trucks will take home the largest share of car sales this month. Even so, used car sales in general are expected to fall off by around two percent. Truck sales, meanwhile, will likely only see a 1 percent dip.

Compare that to used compact and mid-sized models, which are expected to see their values drop by 2.4 percent. Dealers may have a hard time selling used hybrids in the coming months. That's good news for buyers who've been waiting to jump into a more fuel efficient model. After all, it's not a question of if gas prices will climb back up, but when.

Values of small used cars fall in lockstep with gas prices originally appeared on Autoblog on Thu, 31 May 2012 09:15:00 EST. Please see our terms for use of feeds.

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AAA expects more Memorial Day weekend drivers than last year

Chris Shunk — Sat, 26 May 2012 14:02:00 EST

Filed under: Etc.

Memorial Day weekend is always a good opportunity to hit the road, and despite the sour state of the economy, AAA feels this weekend will see more travelers in their cars than last year.

Based on responses gleaned from a member survey, AAA estimates that 34.8 million Americans will travel 50 miles or more this Memorial Day weekend, an increase of 500,000 travelers over 2011. The survey also predicts that 88 percent of this weekend's travelers will skip planes and trains in favor of cars. 53 percent of those surveyed say that elevated fuel prices won't affect their travel plans.

While the number of travelers will likely go up this weekend, the AAA survey finds that distances traveled should decrease significantly. Respondents say they will travel an average of 642 miles over the holiday weekend, or 150 fewer miles than last year. This is where fuel prices manifest themselves; while high gas prices may not keep people from driving this weekend, they will keep them from driving as far as they might have if costs were lower. You can read over the full AAA press release below.

Continue reading AAA expects more Memorial Day weekend drivers than last year

AAA expects more Memorial Day weekend drivers than last year originally appeared on Autoblog on Sat, 26 May 2012 14:02:00 EST. Please see our terms for use of feeds.

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Analyst suggests gas prices may have peaked at $3.92/gal

Chris Tutor — Wed, 11 Apr 2012 11:30:00 EST

Filed under: Etc., Earnings/Financials

High gas prices burning through your checking account faster than a Bugatti Veyron through premium? At least one analyst says the pressure might drop soon. Patrick DeHaan, senior analyst for gasbuddy.com thinks fuel prices have peaked for the year, with the national average sitting at $3.92 for the last week. According to USA Today, DeHaan expects average national gas price to fall to $3.70 before May.

If you're the type to send Thank You cards, keep in mind all those Toyota Prius owners who have sacrificed driving pleasure for greater fuel economy, and the leadership in Iran who have kept things kind of quiet over there for a few days. Depending on your political bent, you can also thank either the Democrats and/or Republicans for fostering a slow economy. All those elements contributed to lower oil prices and, in turn, lower gas prices. In contrast, the Federal Energy Administration is still predicting a $4.01/gal peak next month.

Either way, don't rush out and buy that gas-guzzling supercar just yet. Any number of factors could send fuel prices flaring. Meanwhile, enjoy your cheap, $3.92/gal regular while it lasts.

Analyst suggests gas prices may have peaked at $3.92/gal originally appeared on Autoblog on Wed, 11 Apr 2012 11:30:00 EST. Please see our terms for use of feeds.

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What $1 rise in price of gas can do to your SUV's value

Zach Bowman — Wed, 20 Jul 2011 14:00:00 EST

Filed under: Car Buying, Etc.

According to a new study by Automotive Lease Guide, fuel prices play a huge role in how much your vehicle depreciates over time.No surprise there, but the specifics of the study are a little jarring all the same. USA Today reports that the study found that when gas costs increase by a single dollar, less efficient, large SUVs see their value stumble by a whopping 13 percent. On the other hand, that same rise in fuel prices will cause the value of more fuel efficient models to increase by 10 percent. Of course, as the report notes, those figures only hold true for vehicles on the polar ends of the fuel economy scale.

For full-size sedans and compact SUVs, fuel prices have effectively no impact on resale value whatsoever. ALG says it expects fuel prices to remain close to $3.65 per gallon throughout the remainder of this year. By 2016, however, the price may increase to $4.06 by 2016, just before more stringent fuel economy standards kick in for the first time. Head over to USA Today for a full look at how ALG says fuel prices impact vehicle resale values.

What $1 rise in price of gas can do to your SUV's value originally appeared on Autoblog on Wed, 20 Jul 2011 14:00:00 EST. Please see our terms for use of feeds.

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Are gas prices changing home buying habits?

Jeff Glucker — Wed, 25 May 2011 18:41:00 EST

Filed under: Etc., Earnings/Financials

Rising gas prices have an affect over many aspects of our lives. Besides increasing the cost of operating automobiles, more expensive fuel leads to an increase in the cost of shipped goods, food and airline tickets. Can gas prices also create changing attitudes amongst home shoppers?

Coldwell Bankers Real Estate recently conducted a survey of real estate professionals, and it found that 75 percent reported clients reevaluating where they search for homes. Home shoppers are looking to reduce commuting distance in order to reduce fuel consumption. The survey found that 77 percent of real estate professionals saw an increase in the number of folks looking for home offices and 68 percent of that pool believe the surge is attributable to rising fuel costs.

The folks at Nielsen have a different take on the matter, however, and believe U.S. consumers have adjusted to a new "spending reality." Folks are adjusting their spending habits to conserve where possible, but Nielsen doesn't believe it's on the level of the 2008 economic freakout.

So now we're going to turn to you, dear Autoblog reader. If you're in the market for a house, have rising gas prices shaped your search in any way? Sound off in Comments.

Are gas prices changing home buying habits? originally appeared on Autoblog on Wed, 25 May 2011 18:41:00 EST. Please see our terms for use of feeds.

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Price of oil plummets below $100, gas may fall to $3.50/gallon by June

Chris Shunk — Fri, 06 May 2011 09:59:00 EST

Filed under: Etc.

The United States economy has been on the up-swing over the past year and a half, but recent data shows that economic growth is slowing and unemployment is once again creeping upward. That certainly isn't good news, but but those factors are starting to take their toll on the fuel prices... for the better.

The price of a barrel of oil dropped by $9.44 on Thursday alone, lowering the price below $100 per barrel for the first time in two months. According to the Associated Press, the per-barrel price reportedly dropped further to $97/barrel early Friday, and the trend may not reverse itself any time soon.

Some analysts feel that we may see some relief at the fuel pump, with prices dropping to an average of $3.75 per gallon by Memorial Day, and $3.50 by mid-summer. Currently, the price of a gallon of petrol rests at about $4.00 per gallon nation-wide, though many areas are paying much more.

That's great news for commuters, but the New York Times Green blog points out that the precipitous price drop was less of a trend and more of a market correction. Demand for oil in India and China, the two countries with the highest population by far, continues to grow at a substantial rate. That means any substantial drop in demand over the long term is unlikely. At any rate, the price of a gallon of gas should drop a bit in the near future, and at this point, we'll take what we can get.

Price of oil plummets below $100, gas may fall to $3.50/gallon by June originally appeared on Autoblog on Fri, 06 May 2011 09:59:00 EST. Please see our terms for use of feeds.

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AP looks into what factors determine gas prices

Zach Bowman — Fri, 11 Mar 2011 16:00:00 EST

Filed under: Etc., Earnings/Financials

With summer just a few precious months away, most Americans are already bracing for some of the steepest fuel prices in years. According to the Associated Press, unrest in places like Libya has seen the average price tag on a gallon of gasoline rocket skyward by 38 cents per gallon, or around 15 percent, since February 15. In fact, the price per a barrel of crude oil has been on a steady trek upward, and in kind, drivers have seen the numbers tick north at their local pumps. So why is it that when the price per barrel drops, as it did earlier this week, gas prices stay high?

The answer, it turns out, is due to a mix of factors. According to the AP, most gas stations set their prices not according to how much it costs them to replace the fuel, but in correlation with their closest competitors in the area. If one station ups their price per gallon, the rest will follow suit and vice-versa. That's because station owners typically only make two or three cents on every gallon of gasoline sold. Instead, they make their money off of the snacks and drinks inside.

Since stations may buy their fuel in long-term contracts to lock in a price for a set period of time, lowering the price per gallon too quickly could cause them to actually lose money on the fuel sold. Head over to Yahoo News for a full breakdown of the factors influencing fuel prices.

[Source: Yahoo News | Image: Paul Sakuma/AP]

AP looks into what factors determine gas prices originally appeared on Autoblog on Fri, 11 Mar 2011 16:00:00 EST. Please see our terms for use of feeds.

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Former Shell boss predicts $5/gal gas in 2012

Zach Bowman — Tue, 28 Dec 2010 13:01:00 EST

Filed under: Etc.

With fuel prices in a temporarily lofty spot thanks to the holidays, it's hard to think of the price of a gallon of gas as a bargain, but according to the former president of Shell Oil, that's exactly what it is compared to what we'll see just one short year from now. While speaking with Platt's Energy Week Television, John Hofmeister said that he fully expects gas prices to be above $5.00 per gallon by the end of 2012. That stance puts Hofmeister firmly in the worst-case scenario club, though other analysts are barely any jollier in their predictions.

Tom Kloza, who serves as the chief oil analyst with Oil Price Information Service, believes that Hofmeister's predictions will come true, just not in the time-frame that the former Shell head honcho has predicted. Instead, Kloza says that he expects $5.00/gallon fuel to show up within the next decade. If so, we can probably expect to see a repeat of the financial shock that occurred when fuel prices shot up in mid-2008. The predictions are enough to make us a little queasy, so you have to really feel for our friends in Blighty - the UK recently saw gas prices spike to $7.30 a gallon. What will their prices be in 2012?

[Source: CNN Money | Image: Kari_Marie via cc 2.0]

Former Shell boss predicts $5/gal gas in 2012 originally appeared on Autoblog on Tue, 28 Dec 2010 13:01:00 EST. Please see our terms for use of feeds.

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Report: India goes on general strike to combat high fuel prices

Zach Bowman — Fri, 09 Jul 2010 08:26:00 EST

Filed under: Etc., Government/Legal, India

Governments the world over are doing their best to stave off budget shortfalls, and India has taken to upping the cost of fuel to cover its overhead. Turns out the common man isn't much for those kinds of shenanigans. According to the BBC News, after fuel prices shot skyward, opposition to the ruling party initiated a strike that stuttered normal life in the country for a few days. Schools closed down, businesses shuttered their doors and transportation ground to a near halt with some flights and trains canceled. Even the nation's biggest trucking union sided with the strike, further complicating matters.

There's even some word that Toyota had to stop work at one of its facilities near Bangalore due to the disruptions. There's no news yet as to whether or not the prices have come back down, but Toyota has managed to get things moving again in its factory.

There is some indication that the public at large is more concerned about the higher price of cooking kerosene rather than the slight nudge in the cost of gasoline. Either way, we're thinking the powers that be will probably think twice before tweaking fuel prices again.

[Source: BBC News via The Truth About Cars | Image: Manish Swarup/The Associated Press]

Report: India goes on general strike to combat high fuel prices originally appeared on Autoblog on Fri, 09 Jul 2010 08:26:00 EST. Please see our terms for use of feeds.

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New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO]

Chris Shunk — Tue, 30 Jun 2009 11:28:00 EST

Filed under: Marketing/Advertising, Videos, Hyundai

Hyundai Assurance Gas Lock ads - Click above to watch the videos after the jump

Hyundai is piling on additional incentives to boost its Assurance program as the industry heads into the dog days of summer. The newest promotion, Gas Lock, fixes the price of regular unleaded at $1.49 per gallon for the next year. The program runs July 1 through August 31, and eligible vehicles include the Accent, Sonata, Tiburon, Elantra, Elantra Touring, Entourage, Azera, Santa Fe, Tucson and Veracruz. Customers choosing to utilize Gas Lock will forgo $1,000 in available rebates, making the incentive a gamble that gas prices will remain high.

Hyundai Assurance struck at cord with the American public when it offered payment protection in the event of job loss. Now Hyundai is looking to give consumers increased peace of mind over of the volatility of gas prices, which have swung from under $2 a gallon a few months ago to nearly $3 at the beginning of summer.

John Krafcik, CEO and president of Hyundai Motor America, says the company's research shows that "nearly 40% of potential new car buyers are staying out of the market specifically due to uncertainty around future gas prices."

You may remember that last year, Chrysler tried a similar promotion, offering the opportunity to lock in gas at $2.99 per gallon when a gallon of petrol was at an all-time high of about $4.50. The move didn't appear to be very successful for the Pentastar, as most opted to instead take the upfront cash on the hood. Hit the jump to pour over the particulars of Hyundai's Gas Lock promotion, watch the two commercials, and let us know in the comments section if you feel customers would be better off taking the $1,000 or one year of $1.49 gasoline.

[Source: Hyundai | Image: Justin Sullivan/Getty]

Continue reading New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO]

New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO] originally appeared on Autoblog on Tue, 30 Jun 2009 11:28:00 EST. Please see our terms for use of feeds.

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Interactive map reveals our global oil useage by barrel, money

Jonathon Ramsey — Sat, 10 Jan 2009 10:02:00 EST

Filed under: Etc.

The Rocky Mountain Institute has created a nifty interactive map that shows you where the U.S. gets its oil from, along with how much - and who - the U.S. pays for its oil. Based on the thickness of the lines, you can see just how much black stuff is coming from where. The map goes as far back as 1973, the year of the first oil crisis, and is accompanied by a graph charting usage and dollars since then. As you'll notice in the pic above, we give a whole lot of money to Saudi Arabia, as well as our Canuck friends up north.

Additionally, RMI has included information on oil production in the Arctic National Wildlife Refuge and the Outer Continental Shelf (in the Gulf) There are some interesting factoids to be found: ANWR drilling wouldn't start until 7-12 years after it's opened up, and peak production - up to 1.9 million barrels-per-day - isn't expected to commence until 20-30 years after that. Thus, drilling in the OCS probably won''t have any impact on fuel prices until 2030. Follow the link to check it out for yourself. Hat tip to reader Rick!

[Source: Technology Review]

Interactive map reveals our global oil useage by barrel, money originally appeared on Autoblog on Sat, 10 Jan 2009 10:02:00 EST. Please see our terms for use of feeds.

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The NYT chimes in: time for a gas tax

Jonathon Ramsey — Sun, 28 Dec 2008 13:04:00 EST

Filed under: Government/Legal, Lifestyle

Can you hear that? Those are the war drums, and more and more of them are beating the same tune: bring on the gas tax. An editorial in The Gray Lady is the latest and arguably the weightiest to join the shock troops advocating for higher gas prices. The writer proposes a fluctuating consumption tax that would keep gas at least $4 per gallon in 2008 dollars, while an economist suggests a sliding tax on the price of a barrel of oil to achieve the same effect.

The NYT admits "a bitter recession is not the most opportune time to ratchet up the price of energy." But it balances that against the coming Obama administration's aims, the government's enviro-friendly suggestions to the U.S. auto industry, and Americans' claims to want to get off of foreign oil.

Although not mentioned specifically in the Times piece, some recommend a gas tax for a reason that has nothing to do with environmental stewardship: state governments need money. States are making enormous budget cuts, trying to sell and lease their lotteries, state parks, roads, bridges, and even their airports, and lining up for federal aid totaling hundreds of billions of dollars, and still saying they won't have enough money. The answer to "Will there be a gas tax?" could be, as Jesse Jackson once said, "The question is moot!" The question is not whether there will be a gas tax, but whether you will pay your additional taxes at the pump, at the toll booth, in your paycheck, etc...

[Source: New York Times]

The NYT chimes in: time for a gas tax originally appeared on Autoblog on Sun, 28 Dec 2008 13:04:00 EST. Please see our terms for use of feeds.

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Cheap Gas = Trucks to outsell cars again this month

Dan Roth — Wed, 24 Dec 2008 09:58:00 EST

Filed under: Car Buying, SUV, Truck, Green, Earnings/Financials

It's the same old story, people say one thing, yet do another. The price of fuel has fallen to the point that it's no longer financially ruinous to fill the tank on a full-size pickup, so looks like truck sales will eclipse cars in December. Despite the public's rhetoric about smaller and more fuel efficient vehicles, the populous has seemingly gone back for another feed at the truck trough. Winter tends to remind people of the things that SUVs and trucks are good for, like plowing and effortless going in inclement conditions while also carrying a passel of rugrats and their associated detritus. Not only are truck sales expected to be up, Hybrids will be the flip side of the trend, underperforming compared to what everyone might have thought a mere four months ago. It might end well for the automakers, with higher profit trucks bouncing back, though the investment in green and hybrid technology will go wasted if the marketplace ignores it, a real danger with fuel prices easing... for the time being. Hat tip to reader "Throwback"

[Source: CNN, Photo: yammeringmagpie]

Cheap Gas = Trucks to outsell cars again this month originally appeared on Autoblog on Wed, 24 Dec 2008 09:58:00 EST. Please see our terms for use of feeds.

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