Gas Mileage and Gas Prices » National Gas Prices

Rising Gas Prices: Fuel Economy and Your Next Car Purchase?

Fuel Economy Advisor — Wed, 07 Jan 2009 06:31:13 +0000

The Associated Press reported that oil prices fell Tuesday as fresh signs of a deepening U.S. recession trumped tensions in the Middle East and worries over natural gas shortages in Europe. Light, sweet crude for February delivery fell 23 cents, to $48.58 a barrel, in trading on the New York Mercantile Exchange.

The five-month slide in gasoline prices has come to an abrupt halt, with gasoline rising by several cents in recent days amid indicators that the national average could jump to $2 a gallon or higher this spring.

So we’re facing rising gas prices — how does that impact new car purchases, specifically hybrid and alternative fuel vehicles?

Automotive analysts expect consumers, who are still wary over the shaky state of the economy, to buy between 10 million and 12.4 million new cars and trucks in 2009. That’s down substantially from the 16.7 million in annual sales the industry has averaged over the past decade. And it’s even lower than the dismal 13 million or so in sales expected for 2008.

So the question is, at what point does fuel economy and better gas mileage become an issue again? A lot of consumers have simply stopped purchasing new cars due to the poor economy. Once car sales begin to pick up, though, it will be a new market out there. Consumers will want cars which get better gas mileage and more miles to the gallon. Next years answer may come from Ford:

The 2010 Ford Fusion Hybrid, and its twin, the 2010 Mercury Milan Hybrid, are mid-to-full-size sedans that seat five in surprising comfort and offer a full-size trunk measuring around 12 cubic feet. They measure 190.6 inches and weigh a goodly 3,720 pounds. The gas-electric output is 191 horsepower and 0-60 mph acceleration is under 9 seconds.

With the cost of gas increasing to $2 in the next few months, more and more consumers will take another look at hybrids and alternative fuel vehicles.

Nationwide Gas Prices Fall; Drivers Still Drive Less

Fuel Economy Advisor — Sat, 13 Dec 2008 03:42:37 +0000

I don’t think it’s news to anyone that gas prices are continuing to fall. Even though we thought the end of the gas price decline was near, it appears prices won’t be going back up anytime soon.

What is news, however, is that Americans are driving less than they were when gas prices were high. The Business Courier reported today that the U.S. Department of Transportation found Americans drove 100 billion fewer miles between November 2007 and October 2008, even after gas prices began to fall.

100 billion fewer miles. That’s a lot of not driving, although it may shed even more light on the declining gas prices. As oil prices by the barrel continue to drop, we have to consider the fact that less people driving means less demand, which always leads to lower prices.

Some of this has to do with a change in behavior for American drivers. Perhaps they’re going Green and just don’t want to burn more fuel, maybe they’re unemployed, maybe they’re exercising more, or perhaps it simply is a fact that Americans don’t drive as much as they used to.

Whatever the reason, the result is clear: fuel prices dropping to below $1.50 in many parts of the country. Which also means less fuel tax income for state highway departments, which means less money to fix roads and infrastructure. So you may be paying for that cheap tank of gas next year when your state has to raise taxes to fix all the potholes.

Gas Prices below $2; The End is Near

Fuel Economy Advisor — Mon, 24 Nov 2008 11:46:13 +0000

CNN reported yesterday that the end of the gas price drop is probably near, citing the Lundberg Survey as the source. The average price of gas dropped over 30 cents in the past 2 weeks, dropping below $2 for the first time in almost 3 years.

“The average price of self-serve, unleaded gasoline on Friday in the United States was $1.97,” said Trilby Lundberg, publisher of the Lundberg Survey. “The last time the price was below $2 was on March 4, 2005,” she said.

This is attributed mostly to the drop in crude oil prices. Last summer, when gas prices were over $4 for most areas of the country, crude oil had risen to over $100 per barrel. Friday oil futures dropped to just under $50, marking the lowest point in the dramatic drop in the past 4 months. Of course, the decreased demand for gas, in part due to joblessness and the poor economy, also contribute to the falling prices.

This is all good news, except for the fact that the price drop is probably coming to an end, as the oil market is settling down. Don’t get too excited about seeing gas drop below $1 gallon next month, it probably won’t happen.

Gas Prices Tumble Again; Gas is Cheap again!

Fuel Economy Advisor — Sat, 08 Nov 2008 19:55:51 +0000

Gas prices are falling all over the country. Here is just a sample of some of today’s headlines from different states:

Drivers pleasantly surprised by $1.99 gas prices from Illinois
Gas prices take another big drop from Los Angeles
Hawaii gas prices nearing a year ago’s levels – from Hawaii
Gas prices hit 2008 low in state from Colorado
Gas Prices Drop Rapidly Around Greene County from Tennessee

Gas prices are dropping everywhere across the country, and it’s all due to the dropping price on oil due to recession fears. The AP reports oil is down to $60/barrel, and they are attributing this to the decrease in demand for energy. This seems to be a predictable side effect of a slowing economy.

Unemployment is up and retail sales are down, and these factors definitely impact the price of oil. As oil prices come down, expect gas prices to continue to drop - some expect them under $2/gallon by the end of 2008.

Gas Prices Below $3 and Falling

Fuel Economy Advisor — Fri, 24 Oct 2008 19:31:03 +0000

CNN reported today that gas prices are dropping below the $3 mark, giving American consumers worried about conserving fuel some much needed relief. This information is based on the Daily Fuel Gauge Report released today by the American Automobile Association (AAA).

The national gas price average is now 2.781 a gallon, down 4.1 cents from yesterday and down $1.33 from the highest price reported by the AAA in July, which was $4.114.

The cause for these declining gas prices may not be what you think; Hybrid cars, conservational green environmentalists and the war in Iraq have nothing to do with it. Apparently it’s because Americans have simply decided to drive less, and use less fuel. What better way to increase gas mileage than to leave your car in the driveway?

Just 2 months ago in August people drove over 5.5% less than July, making it the sharpest decrease in miles traveled since the U.S. gov’t started compiling data omn how people drive. Gas consumption for the past four weeks averaged 8.8 million barrels a day, or 4.3% lower, according to the U.S. Department of Energy.

Oil prices dropped $3.96 to $63.88 a barrel, and OPEC has stated it will cut production by 1 and a half million barrels/day starting next month.

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Gas Prices Dropping; Closer to $3 Per Gallon

Fuel Economy Advisor — Tue, 14 Oct 2008 11:37:41 +0000

Finally – some relief from ridiculously high gas prices. All summer long I’ve been paying over $50 to fill my tank – on regular unleaded! Now granted it’s a V8 gas guzzler (not even an SUV!) that only gets 20 miles to the gallon, but still, with gas prices hitting $4 per gallon in some spots it has been expensive.

But the good news today is that the nationwide Lundberg Survey of gas prices has discovered that the average national price for unleaded regular gasoline has dropped .35 cents, from $3.66 to $3.31 per gallon. Almost at $3!

We’re not out of the woods yet; CNN reported that gas prices are still 19% higher than they were a year ago. Still, we’re within .25 cents of hitting the $3 average. Their report is more optimistic; according to CNN the average price of regular unleaded dropped to $3.247 a gallon nationwide, down almost 4 and a half cents.

Time to fill ‘er up yet? Not yet … I bet gas prices are going to keep dropping all week! Unless, of course, you’re out of fuel, in which case, yes, you’d better go fill the tank