Autoblog

Machines are only as smart as their creators, which doesn't say much about gas pump manufacturers in the mid-1990s. A report from Washington reveals that at least 12 gas stations in the state are using pumps not 13 years old that are unable to display and calculate a price of gas higher than $3.99 9/10 per gallon. These pumps were produced before everything went digital and you could simply slide your AmEx into the little slot to pay for your premium petrol. They use a mechanical computer with gears to calculate the price of gas, and the cost of retrofitting them to account for the current reality of $4+/gallon gasoline amounts to $8,500 in upgrades according to one station owner, if he could even find the parts since they're all on back order.

Just like computer engineers couldn't imagine that their little machines would last until Y2K, the mechanical engineers who designed these pumps back in 1995 when gas was the equivalent of $1.60/gallon apparently couldn't imagine a day in 2008 when dead dino juice would be this expensive. Unfortunately for customers who patron stations with this antiquated equipment, they aren't getting their fuel for the price advertised on the pump. Rather, the state's Weights and Measures program is giving these businesses extra time to upgrade or replace their pumps as long as the actual price of gas is clearly displayed and customers get an explanation of what's going. For now they're doing it the old fashioned way, by multiplying the gallons pumped by the price on the sign. Thanks for the tip, bojac!

[Source: Seattlepi via Fashion Funky]

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

WHEN THE OIL BUBBLE BREAKS

In 1995, way back in the days of print, I was doing research for the 100th anniversary of a magazine called Automotive Industries. It actually started out in 1895 as a magazine called The Horseless Age, a much more romantic name for a publication, don't you think? It was fascinating to go through all of the back issues and watch how the auto industry evolved literally each time I turned a page.

In the course of my research I started to notice a pattern. Starting in the late 1920s, the magazine ran an article warning that we were running out of oil. And once a decade or so after that there would be another article, written by a different editor, interviewing a different expert who predicted essentially the same thing--that we'd be running out of oil in the next 15 to 20 years.

You've heard this point before, but despite the price of gas being at record levels, adjusted for inflation, it's still not the most expensive we've ever paid for dead-dino juice in the U.S. The Auto Prophet, one of the original auto-related bloggers that's still keepin' it real, found this informative chart (see larger version here) from InflationData.com that illustrates this fact in a straightforward way. The black line is the actual average price of gasoline in the U.S. since 1918, while the red line represents the price of gas since 1918 adjusted for inflation.

The most we've paid for gas was when we first started buying a lot of it back in 1918 when the chart begins. That year Americans paid an average of around a quarter per gallon, or just under $3.50/gallon in 2007 dollars. Last week's record average price of $3.28/gallon still falls below those early levels.

The chart is particularly interesting because it shows a general downward trend in the cost of gas when it's adjusted for inflation. There are spikes in the red line from the oil embargo in the '70s and the recent increases since the war in Iraq and Hurricane Katrina hit, but if you watch the red line we should expect the price to go back down. Unfortunately, the actual price of gas will probably continue to rise as it has since 1918, as well. Just as long as it doesn't catch up to the inflation curve, the sting won't hurt so much.

[Source: The Auto Prophet]

We resist writing posts on how expensive gas is nowadays because if we made it a habit, that's all we'd write. Every once in a while, however, there's a news story about gas prices that we can't ignore. This past week, the national average price of gas beat the previous record set in the first week of September 2005, the week following Hurricane Katrina's devastating landfall. The national average price of gas peaked at $3.11 that week. Since last January, however, the national average has been increasing on an uninterrupted pace. At the end of the first week of May, the average stood at $309.70. On May 14th, it was reported by the government to have risen to $314.30, eclipsing the previous post-Katrnia record. (Click here to view the government's archive of average fuel prices.)

We don't claim to be analysts in this area, so we wouldn't venture to guess what various factors are conspiring to push the price of gas ever higher. We don't know if or when it will level off, or perhaps even decrease, though we imagine the retreat of summer and colder temperatures will bring some relief. Nevertheless, we though it prudent to point out that as of May 14th, the price of gas is truly at record levels.

[Source: DailyFuelEconomyTip, Energy Information Administration]