US Gas Prices Take Big Dive

I just traded my Prius in for a 2014 Avalon Hybrid XLE Touring. I had nothing against the Prius. It does what it is supposed to do and more. It was the most economical car that I will ever own and no doubt the most reliable. I am 76 and I just wanted a luxury car before they plant me.

 

You stuck w/ Toyota and hybrid- kudos to you. Enjoy the Avalon.

 

Per This Week In Petroleum, gas prices are down about $0.10 since this time last year and they've been rather flat for several years. There's a lot of frackin' crude coming online and the US is producing more oil than it has in years. Also, CAFE standards are increasing. As a result, gas prices are likely to sag over the next several years.

It takes several years for supply/demand to respond to pricing pressures, and the $4-5 gas from several years ago is only now having an effect. Figure several more years of $3-ish gas then around 2020 there will be another crisis/spike in prices, probably up to near $10 a gallon. All this is just a guess.

As for prices only going up, I remember paying $2500+ for an Apple //e with a 300 baud modem. Now a laptop with Wi-Fi is what, a couple hundred bucks? And don't get me started on $50 for Asteroids on the Atari 2600.

 

...OK its a plan! guess I can schedule one more new Prius before the Avalon

You probably have the Chicago RFG blend so you've got to addon ~20-30 cents from the $3.10 plus you have more taxes. Also if you check out GasBuddy.com, there was an overnite +20 cent price hike in the midwest this Friday...not sure a cause was discussed.

Attached is a gasoline map I use a lot ...it shows if you have RFG where you live. I have to guesstimate 50% of Prius owners have RFG (reformulated gaso) but Its just a guess.

 

The way I look at a hybrid is that they save you money now and it is good insurance in case of an oil disruption in the Middle East or somewhere and that is going to happen sooner or later. If it does happen, I will be affected somewhat but Prius owners will be unscathed and that is a good feeling to have.

 

Where I live the station that I usually buy gas increased 22 cents on Friday so you are right on it.

 

The way I look at a hybrid... I bought mine after we bought one for my wife. I was impressed with the technology and I liked the green factor; the mileage is a by product or a + from my point of view. The engine shutting off at stops and such is the coolest thing since sliced bread. I was aware of the poor site lines from inside, the cheapness of the interior finish, etc- but given the shortcomings of this car, I LOVE IT!! I have the worst commute for this type of technology ( work very close to home), but I do not regret buying it. I washed and waxed both mine and my wife's car this weekend. 50 + mpg?? Bring it on baby! It cost me < $ 7 for an approx 120 mile trip this past Thursday!

 

The Prius just can not be beat for reliability and being cheap to operate. It just costs hardly anything to drive one and only Prius owners fully realize that. I put 48,000 miles on the 2011 Prius I had and I did not spend one cent for repairs. It looked like a new one and ran like a new one when I traded it. There is no telling how long that car would have lasted.

 

saturday I filled up for $3.32. I really think the trend to the end of 2015 is pretty flat as long as opec or russia don't spike things.

After I filled up I was suprised that in the right lane at the light we had a Tesla S, volt, prius c, me in a gen III prius liftback, then a honda insight, all 5 of us in a row with the insight the guzzler of the group. Ok the other lane had a crv, camry , f150, but that little stretch had cars using a lot less gas, and 5 different cars. I expect that as 2016 we will have many more plug-ins and hybrids on the street here.

 

I wonder . . . . . if gasoling wasn't so heavily subsidized, if it would cost as much as some pay in the UK . . . . about £1.30 a litre .... back of the napkin ... isn't that somewhere between $9 - $10 gallon US?

and we cry at the thought of $5/gallon gas.

.

 

You get used to it. You don't like it but equally you learn not to waste it.

I thought it was about $8 a US gallon but currency fluctuations play with that all the time. It isn't ever less than $8 though. But our minimum rated unleaded is Premium 95. We never had 92 RON octane here, so that might account for a small increase we pay.

 

Gasoline prices around the world, 28-Jul-2014 | GlobalPetrolPrices.com
$8.42 in the UK last week compared to $3.79 USA, $3.71 Russia, $0.61 Saudi Arabia, $0.23 Syria, full chart is given price after taxes.

Direct oil subsidies in the US really are only pennies per gallon. $4 Billion/year subsidies divided by 134 billion gallons in 2013 is 3 cents a gallon. The shortfall on the highway trust fund is about $0.15/gallon. The bigger indirect effects, health, pollution, ghg, and military, are hard to quantify. Here is an attempt ----
Fossil Fuel Subsidies: Overview | Oil Change InternationalOil Change International

Its a pretty fair bet that if oil was taxed at an additional $40/bbl (about $1/gallon for fuel, if done over 4 years at an addional $10/bbl per year it would have little effect on the economy) and we cut back millitary spening, and the money was used to reduce the payroll medicare tax, we would have a more sound policy. That would be enough to incentivize purchase of more efficient cars. On the other hand simply slapping a big tax on as europe does, does promote more efficient cars, but also likely hurts the economy.

 

How? Or do you mean if your Government suddenly started charging $8 a gallon tomorrow? That would cause big problems but it would never happen. Now if $0.10 was added each year would be barely noticeable and would cause people to give a second take when buying a new car. Perhaps ring fencing the tax for something important and travel related?

The prices you pay now are what we paid 10 years ago. People didn't really bother about fuel costs. Maybe we'd think twice about getting a 4 litre engine if we drove a lot of miles. People didn't really consider a Prius other than for the technology as the amount it saved was pennies.

Now fuel economy matters.

 

yes, as I suggested, $10/bbl of oil a year would be about $0.25 US a year, and that might be a good thing, but European taxes would severely hurt the US economy. People don't buy cars every year, now it looks like the average is 11, so going up too fast causes shocks that hurt the economy. Adding $40/bbl over 4 years is probably enough to move people to buy more efficient vehicles.

europeans have access to better public transportation, and most travel fewer miles per year.

 

lol there are actually news reports over here about some of the fantastic tram and public transport systems you guys get.

Not all Europeans have great public transport and perhaps we travel fewer miles because fuel is more expensive?

As I've mentioned before, the cost of fuel is an influencing factor in vehicle sales. In the mid 90's when our fuel prices were the same as yours now Jeeps were popular. Now as fuel has increased their sales have bombed;

JEEP (manufacturer) - How Many Left? (Licenced is a vehicle registered for use SORN is a vehicle registered but not driven)

 

I don't know where the fantastic public transport systems are in the U.S. I live in a Chicago suburb and it is not here. If it is here I haven't found it yet.

 

That is strange. I think London, Paris, and Madrid all have better service than our best, NYC. Where do you hear about the fantastic train service in the US. I haven't been to portland, but I've ridden on most of the other cities systems (subway, trains, buses, cabs), in western europe and the US.

+1

Yes fuel price is a factor, and I am agreeing with you that raiseing the price, but raising oil taxes would be a good thing to both get more efficient cars and perhaps more using public transportation and/or driving less. I just don't think the US needs the levels of taxation eruope currently has, and definitely don't want it to be a percentage of price, as prices are quite volatile. Better public transportation would also help releave the pressure on those that can not afford an efficient car or the higher fuel prices. Luckily there are some quite cheap effiienct cars like used nissan versa, fit, focus, yaris, etc.

+1

 

Just visited 6 northern European countries and was amazed at the level of satisfaction with services received versus taxes they experience. They also have excellent public transportation using underground subways, streetcars, buses, etc, use bikes thousands of times more than any US city, have bike lanes on almost every street including between cities, a high level of physical fitness, etc.

Copenhagen will ban private cars from the center city next year (public transport will be free, bikes and cabs). Even today you'll see hundreds of bikes parked in a cluster around each center city office. And when you step off a buss, you have to watch for bikers in the bike lane next to each street. They seldom even ring or toot. They assume you know they are there because all the locals do. Absolutely routine to see a lady peddling home from work in her work clothes. Our guide said the average Dane pays ~50% in various taxes and 180% of the purchase price of the new car they buy.

They invest the taxes in education (free through college and sometimes beyond), health care, transport and rebuilding/refurbishing, pensions, etc. Quite a contrast especially to the state where I live.

 

I live in Chicago. No fantastic public transportation here. It is crap. If you don't have a car you are home bound. Stuck. Going nowhere.

 

I've driven in a lot of cities and I've taken public transportation in almost as many. The best city for public transportation? Washington DC is a tie with NYC for public transportation. Washington DC is very easy to figure out but is very short range. NYC has some excellent long range trains that go into the city but I find the typical subway a little more confusing and not nearly as nice as DC. I never found the one in LA and have only used the trams in SF a couple of times. Chicago has a nice subway as long as you only need to go from the airport to the center of the city. The bus system is better. Boston doesn't have a bad subway with a couple of lines that are fairly long range but its quite short range in general. Phoenix, Omaha, and San Diego, bwahaha, although the bicycle powered buggies in San Diego had some cute drivers.

Omaha was by far and away the best city to drive in, even during rush hour. Something to be said about almost perfectly square city and friendly people. Although the people in Washington DC were surprisingly nice, probably because they know you are in the same boat as they are. Driving in NYC, Washington DC, and Boston sucked cause there's no parking.


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