toddtalks

gas prices

So, I had the pleasure of buying $4/gal. gas this weekend for the first time. I filled up my Xterra (20 mpg highway) at the local Chevron station in Ventura, CA and snapped a picture when the tank was full (see pic after the jump). As you can see, I actually paid $4.019 for a gallon of regular gas. Came so close to $80.00 - maybe next week.

The increased gas prices got me thinking about Clinton and McCain’s idea of a gas tax holiday this Summer (I promise this blog is not going to be political). Essentially Americans would not pay the $0.18 Federal gas tax for a few months this Summer. I really hope that my fellow Americans realize that this is the wrong solution to the problem. If the average person uses 15 gallons per week, they would save $10.80 per month (someone please check my math). The sad part about this savings is that the gas stations would not pass on 100% of the savings and we would probably only see a $0.15 reduction in gas prices, so the actual savings would be closer to $9.00/month.

Gas prices will continue to go up as oil prices rise this year. Suspending the gas tax will encourage more driving which will further drive gas prices up. The only real solution for individuals is to make sure your tires are in good condition and properly inflated and drive less or carpool. Just by having your tires properly inflated will save you more than $10/ month. BTW, you should check your tires once a month and add air when necessary. Another way to fight the rising gas prices is to buy a vehicle that gets better gas mileage. If your current vehicle gets 20 mpg and you switch to a car that got 40 mpg, it would be the same as gas prices dropping to $2/gal. See you at the pump!