Gas cost next to nothing?
Sometimes it is still hard to believe for some.
This weekend I was doing a little spring cleaning, and I finally decided to toss a bunch of old gas station bills and receipts. Those who know me well know that I can be a bit of a pack rat when it comes to throwing away receipts. Well, I hadn't tossed a
single one of these gas receipts since 1988, thinking that one day I might enter the data into a spreadsheet (back then I would have used
VisiCalc!) so as to produce an interesting chart.
Well, it was an interesting idea, but fortunately I've had better things to do, and never got around to it. Nevertheless I did scan a couple of the receipts in because I thought it would be fun to see what I was paying for gas back then.

Feb 27, 1989: Regular Unleaded (87 Octane) = $0.969

April 30, 1998: Special Unleaded (89 Octane) = $1.189
Hard to believe I could
ever fill up a tank for just 10 bucks. Today I drive a car with only a slightly larger tank and it takes almost $50 to fill up.
From the mid 80's, through the new millennium,
gas prices barely budged. The two receipts above, although nine years apart, show only a modest increase. However, since 2002 during the run up to Bush's war in Iraq, prices have doubled, and almost tripled. These days the savvy consumer can benefit from identifying which gas stations have the lowest prices, as such a site as
GasBuddy.com help you to do. On my daily commute I see prices differ by as much as 20 to 30 cents depending on the station. Invariably,
ARCO has the cheapest gas in this area.
While I take note of all these things I, like so many, am a creature of habit, not always logical - as much as I consider myself a person who does much based on logic. For example, I will drive by the cheaper ARCO station and fill up a few blocks away at a more expensive
Chevron station. Why? Well I have a Chevron card, and I haven't bothered to get an ARCO card, and I like putting gas purchases on a gas card rather than my credit card. No good reason, I just do. I'm also still putting premium gas into my car. That's what the spec suggests, and despite the fact that you can
read everywhere that premium gas isn't necessary, I still buy it, paying 20 cents a gallon more for it.
The point I'm getting at is that I have not altered my habits, as costly as they are, and that means I'm not feeling the bite of the higher prices yet. I don't drive as much, but I'm not sure that is not just a matter of circumstance, rather than a concerted effort to conserve fuel.
I've always felt that as a nation we've been on a free ride. The price of gas in America has been vastly cheaper than overseas. In
Europe gas taxes are considerable. The Dutch are paying over $7 per gallon, with 66% of that in taxes. The Brits pay 75% in tax on their "petrol". That's $4 of tax for a $6 gallon of gas. By comparison, we pay only about 15% tax on the overall price.
Back when
Ross Perot was running for President, part of his platform included a $1 gas tax, which was a big reason I voted for him - twice. At the time that would have been a considerable tax, even if it were far less than what European nations were enforcing, but when you consider how much gas we consume as a nation in a year (
133 billion gallons), that's a lot of tax dollars that could have been captured.
Yes, yes, I know, you're probably thinking I'm just a bleeding heart, tax and spend liberal. Whatever. The fact of the matter is that pretty soon we
will be paying European gas prices and very little of that money will be going into financing programs that could benefit society, and instead it will be going into padding the already stuffed pockets of
Big Oil executives. Any chances that we could have encouraged the development of cheaper fuel alternatives, or more fuel efficient cars, while at the same time funding better transportation alternatives, education, you name it, on gas tax dollars is literally a pipe dream these days. Quite the opposite is happening, Frist and his friends are proposing a typically idiotic
tax giveaway of $100, and yes, Democratic suggestions for a larger rebate are just as idiotic.
These are just band-aid responses to an issue that we cannot wish will just go away.
On Friday I watched
"The End of Suburbia" on DVD. It was a sobering look at a way of life, driven by cheap oil, that we've come to take for granted, but which is destined to end within my lifetime. The issue of
Peak Oil is one that governments
have to take seriously. We ignore it at our own peril. Even if you dismiss the Doomsday scenarios it is clear that our reliance on oil for so many of the
products we buy and use, not just the gas for our cars, means that we will be seriously hurting when the price for all these becomes too high because the resource is scarce in face of the demand. What alternatives will we develop? What compromises to out lifestyles will we be willing to make - or have to make, whether we like to or not?
President Bush is pushing a hydrogen car solution. This is
such a joke, but it isn't a funny one. Simply put, it will take more energy to produce the necessary hydrogen, than that hydrogen will ever produce in energy. Hydrogen is a net loss energy solution. Bio-fuels are no better. We simply wouldn't have enough land to grow the crops needed, and
finite water issues alone would cause other problems that our oil-bitten nation just isn't prepared to talk about. A good discussion about why a sugarcane fuel might work in Brazil, but not in the U.S. can be found
here.
None of these are easy problems to solve. For the modern world that is beholden to a
lifestyle based on oil there will be withdrawal pains like we've not seen in many a year. We need to do the things that we can, be it driving a
Smart Car, riding mass transit, taking less trips or buying fewer products. As Thomas Friedman likes to write (and I guessing he will do so in detail in an upcoming book),
Green is the New Red, White and Blue. We need to make environmentally sound choices, and we will find that so many of them will have huge economic benefits. As a nation we need to become a leader in the "green" market place. If we don't do it we know China will, out of pure necessity. We cannot afford to take a back seat in the innovations and fortunes to be found in this scientific race for a solution to our present and future energy needs. If we fall behind, we will surely be thinking many years from now, "Remember when..." regretfully all over again.
Cross-posted at On The Road To 2008.