Saturday, May 14, 2022

Rising gas prices

 


 

Moon of Alabama

Diesel fuel prices in the US have gone up nearly 10% in the last month - after the SPR release. This includes literal new record prices every single day for several weeks.

Gasoline in turn is going to take a serious shot at setting new records this week.

Gasoline (Record price 4.331 set on 3/11/2022)

    Current Avg. 4.317

    Yesterday Avg. 4.301

    Week Ago Avg. 4.187

    Month Ago Avg. 4.139

    Year Ago Avg. 2.960


Diesel (Present price is record)

    Current Avg. 5.539

    Yesterday Avg. 5.531

    Week Ago Avg. 5.296

    Month Ago Avg. 5.062

    Year Ago Avg. 3.109

And yes, gasoline and diesel prices in the UK and Europe are higher...but the average Brit household drives 7,400 mile per year; the average European household drives 7062 miles per year vs. the average American household drives 14,200 miles per year (depending on source)...and has a far worse average gas mileage on top of that. US average MPG = 25, UK = 38.8, presumably EU slightly higher than the UK.

It is furthermore not the least bit clear that the average American household can significantly reduce the amount of miles driven.

And sure, a doubling of gas prices means only $500 more spending a year in the US - but again the effect of fuel and food price increases is always the greatest on the poor.

The rich effectively don't care, even if they weren't less affected to start with due to newer cars/higher average mpg or EV ownership.

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