Hope! Change! Record Gas Prices!

Highest. Gas. Price. Ever. For this date in August.

More daily records are likely over the next few weeks. The national average could increase to $3.75 per gallon by Labor Day, said Tom Kloza, chief oil analyst at Oil Price Information Service. By comparison, gas prices stayed below $3.70 in late August and early September in both 2008 and 2011.

Retail gasoline prices have gone up about 39 cents per gallon, or 12 percent, since hitting a low of $3.326 on July 2, according to AAA, OPIS and Wright Express. Kloza estimates that U.S. drivers are paying $149 million more each day for gas than in early July. That isn’t what the sluggish economy needs, since any extra money that goes to fill gas tanks doesn’t get spent at movie theaters or restaurants.

I commute a longish distance every day to work – and I can tell you that these prices are brutal. Not that you need me to tell you that. I saw the other day that 0bama is floating the scam of releasing oil from the strategic reserve again. Had he given a green light to the Keystone XL pipeline prices would already be down – and likely falling. Instead we get record prices and stunts that won’t help.

Hype and Chains strikes again.

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2 Responses to Hope! Change! Record Gas Prices!

  1. Marica says:

    Gaius– When I come across a post such as this, I like to comment by reminding folks of the farmers out here in America. We run on gas. Tractors, tillers, mowers, big trucks, ATVs… . Not to mention generators as we prepare for the inevitable fall storms.

    It’s the time of year where we small fry farmers see the big guys gear up. They will be pulling– with their pickups (~18mpg if lucky)– their 500 gallon tanks to town to fill up soon. The cotton farmer down the road has two of these that he’ll move to his front yard. Diesel is going for about $3.79 or more. Do that math.

    We’re also beginning to see large flatbeds willed with sweet potatoes. Those trucks can’t get more than 10-14mpg. But how else are the sweet potatoes going to get to market? Likewise the huge trucks that take the baled cotton to the gins.

    The drought wasn’t as bad here as in other areas. But imagine having planted a crop that had nothing to harvest. And then having to spend gas money to cut it down and plow it under.

    Just something to think about on your commute.

  2. Gaius says:

    Oh, yeah, Marica. The rise in food prices due to drought and high transportation cost will be mind-numbing. Count on it.

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