Remember when gasoline was $1 a gallon? It was not so long ago. How about $2 a gallon? Seems as though it was yesterday or so.
My family has two vehicles. One of them is quite fuel efficient (25/30 mpg) and is used for my daily transportation. The other is less fuel efficient (12/16 mpg) and is used for carting around the rest of the family (5) or including me (6). Though we recently switched out our more efficient vehicle from the one we had for the last 10 years, the efficiency difference between the old vehicle and the new one is small.
In 2010, we spent $3131. My current projections, based on the looming certainty of $4 per gallon gas, is that we will spend between $4800 and $5400 this year on fuel alone, with no appreciable difference in the number of miles traveled (this year compared to last year).
I understand that there are any number of caveats which come into play. Yes, I know that I made the choice to live where I do, which necessitates a 50- to 60-mile round-trip for work, serious shopping, etc. Yes, there are things we can do to reduce the number of miles traveled. Yes, we can turn our entire lot into a victory garden. (At the same time, my housing costs are much decreased from what I would have to pay did I live in our nearest metropolis.)
All of that aside, let us just consider that regardless of what a household’s actual expense for auto fuel might be, a 50% to 80% increase in the cost from one year to the next results in real pain.
Via Power Line, Palin hits the nail on the head:
Through a process of what candidate Obama once called “gradual adjustment,” American consumers have seen prices at the pump rise 67 percent since he took office. Let’s not forget that in September 2008, candidate Obama’s Energy Secretary in-waiting said: “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” That’s one campaign promise they’re working hard to fulfill! Last week, the British Telegraph reported that the price of petrol in the UK hit £6 a gallon – which comes to about $9.70. If you think $4 a gallon is bad now, just wait till the next crisis causes oil prices to “necessarily” skyrocket. Meanwhile, the vast undeveloped reserves that could help to keep prices at the pump affordable remain locked up because of President Obama’s deliberate unwillingness to drill here and drill now.
The market has many ways to reduce the cost of a gallon of automotive fuel, drilling being one very obvious one. The President is effectively quashing this option by the policies which his administration creates.