Four dollars a gallon.

[roteague]

We really do need to bolster the dollar, even at the expense of those companies now profiting from overseas sales of bargain-priced goods.

It doesn't help when the US Air Force awards a multi-billon dollar contract to Airbus (instead of Boeing).

[SAShruby]

Our idiot president acted like he hadn't heard that gasoline will be $4 by this summer. Either he lied, again, or he's dumber than I thought.

Definitely Dumber.

[vinny]

Speaking of dumb: check out the section on the gas guzzler tax
http://www.largeformatphotography.in...ad.php?t=33572

Does anyone think the price of gas will ever decrease? Did demand really change that much to drive the prices up this much? I remember the summer of 1998 when it was less than $1 in grand rapids, michigan. 10 years isn't that long in the history of oil consumption.

[Jim Chinn]

The price of a barrel of oil has more than doubled in the last 3 years, yet consumption world wide has increased only a few percentage points each year. As Donald pointed out, the decrease in the value of the Dollar is key and don't forget the role of speculators who drive the price higer.

It is true that the price of gasoline is still inline with the previous high from 1980 when adjusted for inflation. The problem is incomes have not increased as rapidly. When you couple the huge amounts of debt many families carry on credit cards, equity lines and second mortgages with increased inflation at the grocery store. The idea that the current recession ( yes we are in one) will be short I think is wishful thinking. The Federal Reserve can push interest rates to 0% and it will make no diference to families that are over leveraged. Unless banks are going to refinace mortgages down to the 3% range (won't happen) and drop interest rates on credi cards from 18+% down to under 10%, increasing inflation will further erode the consumers ability to not only repay debt but purhcase non-essentials. Remember, consumer spending accounts for 2/3rds of GDP.

And don't count on those rebate checks makinga big difference. A big chunk will go towards retiring debt and buying groceries and gas. What does get put into the economy will be sucked back out in 2010 when income tax will go up and the capital gains tax is raised.

[Ron McElroy]

Does anyone think the price of gas will ever decrease? Did demand really change that much to drive the prices up this much? I remember the summer of 1998 when it was less than $1 in grand rapids, michigan. 10 years isn't that long in the history of oil consumption.

One major reason for the low price of gas in 1998 was the economic colaspe in Asia and the strength of the dollar. Oil sold for about $10/barrel at that time. Today's weakness of the dollar is driving the price of oil by making it cost more here as well as major investors putting money into oil futures as an inflation hedge.

[seawolf66]

The gasoline should Be Higher in the city to make the folks use Public transportation
the people out in the boon docks like the outskirts of Minasotta montana,north dakota :They have a long ways to go to get food and supplys: :

[domenico Foschi]

A friend used to say: I don't care if gas prices increase, I will always buy it $ 10 at a time.

When gas prices will get to $4 I will seriously start thinking to return back to Italy.
Just one more excuse.
Gas is expensive in Italy, but we use the car MUCH less.

[john borrelli]

I have been driving Honda Civics for years. On the highway, driven at 55 mph the mpg is ridiculously good. The cars are also low emissions vehicles which is also good for the environment. My most frequent location for photography is 2 hours north on the highway (the White Mountains area of New Hampshire). I have definitely gone there less this Winter(my favorite season there) in part because of gas prices. To optimize my success, I have taken to closely track the weather on Weather.Com. For a week before I go, I look for certain conditions, when I think I see that trend and can get a day off, I go. I have also called a Tourist office there and had the staff look out their window to verify what I have been tracking. I think the higher gas prices have helped to make me more efficient in some of my photo practices.

[Nick_3536]

Gas is expensive in Italy, but we use the car MUCH less.

If you live in a city yes. If not I find I drive further. OTOH my car gets so much better mileage that even with 1.3 for a litre of diesel it costs me 1/2 what it cost in Canada.

On the point it's all the US $. If that was true the price in Euro would be flat. It's at record highs here to.

On the supply issue. Supply was so high last year they had no place to stick it. All the storage tanks were full.

Gasoline supplies aren't exactly tight now either.

Now they could raise the margin requirements on commodity futures. Wanna bet how quickly the prices would drop?

[Dick Hilker]

Now they could raise the margin requirements on commodity futures. Wanna bet how quickly the prices would drop?

That probably would help, along with reversing the "Uptick" trading rule on shorting stocks.