When gas hits $5/gallon…..

Those who think $5 a gallon gas won't ever become a reality should look back to 1999. The lowest I paid, then was $.73 cents a gallon. I can also remember when gasoline that was 23 cents a gallon in 1971 become 55 cents a dgallon in 1973.

Just enjoy the current price drop. It won't last!

 

Mike is right. gas prices have been yo-yoing for years. normally they are high at this time of year and low in winter like this past winter when we set all time high for Dec, Jan, Feb, etc.

so its still yo-yoing but a bit backwards. now, we can hope that the economy continues to suck and that will help keep prices low. now this past Spring, all but the West Coast saw a big drop in gas prices from 4+ to the mid 3's. We were above $4 into June. but, now our prices have come down.

cause? part of it was getting a refinery back online but part of it was a reduced level of consumption. i am not complaining that prices have gone down again, but they never seem to get back as low as they were before.

now some experts are saying gas will hit the 2's in most areas of the country. that is something i have not seen in 3 years and will be nice. it will last long enough for several people to pull the trigger on a big honking something or another that gets 15 mpg...

 

The question really isn't the price of gas, it is the typical car salesman 'gimmicks'. One of the reasons I like Toyota so much is just how rare that type of behavior is (in my experiences at least).
It is one of the reasons I will continue to try out new Toyota offerings any time they come even close to what I am looking for (can't wait to try out the RAV4ev).

 

Nobody in the world thinks gas will never hit $5. I agree with sentiment of OP's post, though. Many people see gas going up and assume that whatever rate it went up over a prior period will be the same as a future one. I never thought gas would hit $5 this year, said as much a few months ago in a gas thread around here, and that is all but guaranteed now.

There are three staples of gas prices:
1) They are constantly changing in one direction with little stability
2) Generally over time they are marching inexorably up
3) When they spike they destroy economic growth, then they pull back again

#3 is why I knew it wouldn't hit $5 this year. The global economy cannot withstand it. Elevated gas prices have been part of every recession (maybe one exception at the most) in the past few decades.

If gas is under $3 national average this year, that's not good news. It means we're hurting severely as is the rest of the globe, but it will be short-lived anyway that low.

 

...as someone concluded in another thread (ENVIRO/Yergin topic) probably best time to buy Prius is when the gasoline prices are lower. But definitely walk away from a high pressure deal in either case.

 

The bad part about low gas prices is it means the economy is in the tank.

 

That's why an optimistic view of the future should assume high petroleum prices and cheap batteries.

 

$3.15/gal in NJ

 

I'd guess a dealership that doesn't sell that many Prius and also doesn't understand the people in the Prius market.

 

I've seen it every election... whoever is in power (party does NOT matter) does everything they can to control gas prices leading up to an election. High gas prices upsets people and tends to swing them towards voting people out of power. For that reason alone, I think we can be sure we won't hit very high prices this year.

 

...what a state NJ is in...tax the living daylights on income/real estate but give low gaso taxes.
Wonder how that works out for them as far as getting out-of-state fill-ups?
I can assure you my Prius fill-up data has more than its share of NJ stations for a VA resident.
...now if I can just remember to let the attendant fill the tank for me (no self serve).

 

Yeah,


I bought my "v" on Superbowl Sunday, when gas was still cheap. It really doesn't matter, since I keep cars for 15 years. Gas will easily be $6 a gallon by 2027.

I got a good deal. From Thanksgiving Day to early January would be the next good time to buy one.

 

That's an "URBAN Legend." Gasoline is controlled by the market and "supply and demand."

The "demand" is low in Europe due to the economic downturn, there.

 

And the government can do a lot to influence supply and demand. For example, opening up reserves can increase supply. Starting a war in Iraq can decrease supply. Decreasing gasoline taxes can increase demand (while lowering the end cost of gas), while increasing them will have the opposite effect. Passing new regulation over gasoline speculators could drastically change the market. Announcing some big new expansion for oil drilling (in the gulf, or in Alaska, for example), or a big new pipeline could cause speculators to lower the price in anticipation.

It's foolish to think the government can't and doesn't influence the price you pay at the pump.

 

Yeah,

The government can use taxpayer money to subsidize this and subsidize that.

But, in the end, "guess who pays for the subsidies."

 

It doesn't matter that we end up paying for subsidies... it's the price at the pump that people care about and that people feel much more often. Paying taxes once a year sucks, but paying an extra $10 per week at the gas station really gets to people, and is a much more immediate influence on their behavior.

 

In addition to politics affecting gas prices...
I think that gas prices are a leading indicator for unemployment.
The fewer people driving to work and the less they buy (reducing transportation requirements) the greater the supply of fuel relative to the demand.
Hence - low fuel costs.
Note that this is only valid during times of flux. In a steady state environment other factors would dominate.