Monday, May 17, 2004

“Cheaper than bottled water” 

In an NY Times article entitled “At $2 a Gallon, Gas Is Still Worth Guzzling” Danny Hakim points out what anyone who drives America’s highways already knows – gas is still inexpensive. Sure, there are people bitching about high prices. But you have to judge people by their actions not their words. And when they are driving by you in a behemoth SUV at 80 m.p.h. you know they really consider gasoline to be cheap. As Robert Schnorbus of J.D. Power and Associates says in the article: “The price of oil is still cheaper than bottled water and milk”.

The article had some interesting factoids. For example, gasoline would be selling for more than $3/gallon today if it had the same price, adjusted for inflation, as gas had in the 1970’s.

And the accompanying graphs showed how automobile weights have increased since the early 1980s while fuel efficiency has stalled or even declined. Yet more indications that consumers view gasoline as being inexpensive.


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