Gasoline Prices Fall, Don’t be Stupid

Gasoline prices are beginning to fall, thanks to the end of the summer driving season.  This means decreased demand for gasoline, which leads to lower gasoline prices.  This is great when you go to fill up your gas tank at the pump sometime soon.  However, please don’t be stupid and think that this is a sign our energy problems are over.

So many people see prices for gasoline drop a few cents per gallon and think that it’s the beginning of a long term trend.  This happens nearly every year - people have been dealing with high gasoline prices and all of a sudden around labor day the prices fall.  Then these people say: “hey, everything’s ok, gasoline prices are going back down, it’s all good.”

No, it’s not all good.  What did you pay for gasoline one year ago?  How about two years?  Or five years?  Since you might not remember, I’ll provide that information for you, courtesy of The Energy Information Administration (http://www.eia.doe.gov/oil_gas/petroleum/data_publ…)

Regular, Unleaded Gasoline Prices

• Aug 21, 2006: $2.87
• Aug 22, 2005: $2.58
• Aug 23, 2004: $1.85
• Aug 25, 2003: $1.69
• Aug 26, 2002: $1.36
• Aug 20, 2001: $1.39
• And all the way back to Aug 20, 1990: $1.19

So if your gasoline prices drop twenty cents one week, do you really think we’re not having energy problems any more?  Far from it - it’s just short-term price fluctuations, and they mean nothing.  The fact is, you’re paying, on average, nearly $1.50 more per gallon than you did four years ago.

Just another reason alternative energy research should be a much larger priority.