Near where I live in Lexington, Kentucky, three gasoline stations all advertised regular unleaded gasoline for $4.29 a gallon and diesel fuel for $5.29 a gallon yesterday afternoon, May 9, 2022. See the photos of their signs.
That’s the highest price I’ve ever seen here in Lexington, Kentucky. Nationwide, the price is even higher according to the AAA figures.
Below I offer some suggestions for coping with gas prices and some perspective on them. .
Coping With the Prices
Ways to cope with the prices include:
* Eliminate or reduce unnecessary trips just for pleasure.
* Order deliveries of products instead of driving to stores; many supermarkets even offer free delivery for orders over a certain dollar amount.
* Combine trips to reduce the low efficiency car warmup period and to reduce driving over the same territory unnecessarily.
* Carpool with trustworthy coworkers, relatives, friends, neighbors, etc.
* Walk and/or bicycle when feasible.
* Use buses, passenger trains, trolleys, subways, etc., when and where feasible.
Some Perspective on the Prices.
1. Adjusted for inflation U.S. gasoline prices are not at record levels.
For example, adjusted for inflation, gas prices were much higher in 2008 when the price reached over $4 a gallon nationally and here in Lexington. Adjusted for inflation, that would be a price of over $5 a gallon now, according to a piece posted on the Washington Post [2] website last December, as well as other sources.
2. It’s better to pay high prices for gas than to not be able to buy it at all.
Back in the 1970s during the Middle East oil embargo many U.S. gasoline stations sold out of gas and others rationed it. Decreases in the supply and/or increases in the demand could lead to that again.
Increasing prices is one way to decrease demand so the supply doesn’t run out. When supply is limited at least one of three things typically happens: (1) prices rise, (2) purchases are rationed, or (3) supplies sell out. That’s a basic economic reality.
3. Temporarily suspending gasoline taxes would be wrong.
Though many state and federal officials are calling for suspending the federal gas tax and/or state taxes during this time of high prices, that makes little economic sense in some ways.
First of all, it wouldn’t stop oil companies from raising prices again to offset the price decrease resulting from elimination of the tax in order to make the supply-demand levels match (see #2 above).
Second, it would reduce federal revenue, adding to the government's huge budget deficit. It might actually be better to raise the tax to discourage consumption and increase revenue to the government for highway construction/maintenance, so the government gets the money instead of wealthy oil companies. Federal gasoline taxes haven’t increased since the 1990s according to the U.S. Department of Transportation [3] and other sources, while many other prices has increased, including the cost of maintaining bridges and roads.
4. Other prices are going up to.
Some other price hikes are larger than gasoline’s. Perhaps one reason we focus on gas prices if that they are typically posted prominently in large letters at service stations.
5. Diesel prices have increased more than gasoline.
This will lead to higher shipping costs for items delivered by vehicles using diesel fuel, costs that will likely be passed on to consumers. But recognize that the diesel fuel cost is only one component in the cost of goods sold by companies. Fuel prices aren't the only reason for inflation in the costs of products at the retail level. Shortages of truck drivers, warehouse workers, factory workers, etc., as well as COVID-19 lockdowns, and extra spending from stimulus checks are all factors. And gas-powered car drivers can sympathize with the diesel truck drivers while appreciating that gas prices aren’t increasing as much.
6.. Gas prices are much higher in many other countries of the world than in the United States as noted by the website GlobalPetrolPrices [4], and other sources. This is due to various reasons, including higher taxes in many other countries.
7 In Ukraine and some other parts of the world, residents face life-and-death problems much more severe than high gas prices. Ideally, we need to look at the big picture rather than selfishly focusing on our own issues.
Final Thoughts
Please seek to reduce unnecessary driving. Also, seek to put gas prices in perspective. They’re not a huge deal in the grand scheme of things.
Focusing on the positive can help avoid anger issues, blood pressure increases, and other health problems that can be far worse than the gas price increases.
Let’s seek to enjoy our blessings. For me those blessings include not owning a car with its various expenses (purchase price, gas, maintenance, repair, insurance, parking, etc.). I walk, bicycle, and use mass transit. Maybe many or at least some of you can too?
ENDNOTES:
1. “AAA Gas Prices”; webpage accessed May 10, 2022; https://gasprices.aaa.com/
2. Borenstein, Severin; “Gas prices aren't actually all that high”; Washington Post; December 2, 2021; webpage accessed May 10, 2022 https://www.washingtonpost.com/outlook/2021/12/02/gas-prices-are-not-out-control/
3. “Federal Tax Rates on Motor Fuels and Lubricating Oil (1)”; November 2021; U.S. Department of Transportation; webpage accessed May 10, 2022; https://www.fhwa.dot.gov/policyinformation/statistics/2020/fe101a.cfm
4. “Gas Prices, 02-May-2022”; GlobalPetrolPrices.com; webpage accessed May 10, 2022; https://www.globalpetrolprices.com/gasoline_prices/
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