Soaring Gas Prices Threaten Family Budgets

Soaring Gas Prices Threaten Family Budgets

New York Times   |  JAD MOUAWAD   |   February 27, 2008 02:43 PM



Gasoline prices, which for months lagged behind the big run-up in the price of oil, are suddenly rising quickly, with some experts saying they could approach $4 a gallon by spring. Diesel is hitting new records daily, and oil settled at a record high of $100.88 a barrel on Tuesday.

The increases could not come at a worse time for the economy. With growth slowing, energy increases that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could worsen the nation's economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.

"The effect of high oil prices today could be the difference between having a recession and not having a recession," said Kenneth S. Rogoff, a Harvard economist.

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"Oh, let them eat cake."

favoriteFavorite Flag as abusive Posted 03:07 PM on 02/28/2008

The only reason the price is going up is the greed of the oil companies, OPEC could have never gotten this much of an increase without Bush helping them. And still, congress won't do a proper investigation or hold anyone responsible. Bush and Cheney are destroying America and our 'noble politicians' sit on thier hands. Pelosi where are you?....

favoriteFavorite Flag as abusive Posted 11:34 AM on 02/28/2008

I hope the price of gas hits $10 a gallon-everything I see on the roads are SUV. When that changes, we know consumption will e brought down

favoriteFavorite Flag as abusive Posted 10:45 AM on 02/28/2008

Don't you just LOVE hybrid Escalades . Talk about your OXIMORON

favoriteFavorite Flag as abusive Posted 02:33 PM on 02/28/2008

Instead of the rebate cheques, how about building some refining capacity owned by the public. The shortage of gasoline seems to stem from shortage of refineries. The oil companies have shown they can't manage the oil business alone....or are managinging it in a way to maximize profits for themselves at the expense of the general public. They are the big culprit in the economic disaster that is happening. Energy should fall into a bracket that is controlled by the public....as is the fire department or schooling.

favoriteFavorite Flag as abusive Posted 05:24 AM on 02/28/2008

Nationalize the oil industry.....

These independent companies are to greedy to accept their responsibility to America DURING A TIME OF WAR.....

so pass the legislation now.....

favoriteFavorite Flag as abusive Posted 08:56 AM on 02/28/2008

Our politicans have rolled over big time. Technology needs to be spent in droves to avoid this assault. It will also reduce OPEC to sand

favoriteFavorite Flag as abusive Posted 03:59 AM on 02/28/2008

Hey George Fuckwit Bush why don`t you just give us prepayed gas credit cards in stead of a check from the IRS

favoriteFavorite Flag as abusive Posted 01:18 AM on 02/28/2008

Under Bush, gas prices have gone from around $1 per gallon to now over $3 and experts are predicting $4 per gallon by the summer.

Is everybody happy? Thank you Republican party and the conservative wing of the U.S. Supreme Court. I hope that America repays you vigorously in the upcoming elections. May pink slips rain down upon your pointed little heads!

favoriteFavorite Flag as abusive Posted 12:57 AM on 02/28/2008

Carpooling has great potential in the age of the internet.

favoriteFavorite Flag as abusive Posted 12:23 AM on 02/28/2008

Since you don't own a car/vehicle which I am envious of, then you are not aware of the 10% ethanol now in the gas supplies around the country. Nor are you aware of the dramatic drop in MPG a vehicle gets with this new mixture which creates a whole hell of a lot more fill ups at the pumps. And that is not including the upcoming problem with this new mixture fouling up the catalytic converters in the new automobiles.
No one ever gave it much thought when all the hoopla about how ethanol was a saviour to our up coming energy crisis but it is a corporate 'GOTCHA' moument that they knew would take in the gullible dumbed downed public.
Nothing, ABSOLUTELY NOTHING is being said about these issues that will pretty much wipe out families financially and totally. With these oil companies raking in 100s of billions of dollars of PROFITs a year and continuing to play the 'we have to keep raising the price' game when dropping the price would be not just a compassionate gesture that conservative corporate america wants everyone to believe with their 'appearance' kind of marketing ploys on the MSM which are more than will to allow but would actually stave off good bit of the upcoming depression we are sliding into.
I wish I could still live where I do but I am sure I will eventually have to sell or loose my home just so I can live in bicycle or walking distance of a place to work. But I will KNOW that when the total collapse of this country and million or billions of deaths are a result, THE GODDAMN CORPORATIONS ARE RESPONSIBLE!!!!

favoriteFavorite Flag as abusive Posted 12:14 AM on 02/28/2008

Shouldn't we be considering better public transportation. Geez, Europe has healthcare and good public transportation. Hello, anyone in Washington looking for alternatives. That's OK keep pissing off 90% of the country.

If they destroy the country there won't be a need for congressmen and senators anymore.

favoriteFavorite Flag as abusive Posted 11:46 PM on 02/27/2008

Hell, zaka1, I don't need 'em NOW...

favoriteFavorite Flag as abusive Posted 11:54 PM on 02/27/2008

LOL, I was thinking the same thing when I posted. Really, what are they doing?

favoriteFavorite Flag as abusive Posted 12:13 AM on 02/28/2008

Since I don't own a car, I'm not very concerned about rising gas prices. Actually, I'm a net beneficiary of rising gas prices since I own oil company stocks, which have been among my best performers for several years. I'm more concerned about rising food prices, which I think are being caused at least in part by misguided government ethanol policies. Ethanol production is a big user of corn, competing with cows for the limited corn supply in the country. Lately, it seems, the cows have been losing and the cost of meat and dairy products are up significantly in the past year. Too bad cows couldn't vote in the Iowa caucuses. If the Democrats sweep the House, Senate and Presidency later this year and decide to re-open NAFTA, don't be surprised if the price of gasoline takes another spike up. The US's largest supplier of foreign oil is Canada and any misguided protectionist trade policy by the US (advocated by Obama and Clinton, who would like to see NAFTA substantially altered) could result in more Canadian oil going to China and less to the US. If you don't like paying $3 per gallon of gas, you certainly won't like paying $4 or $5. Mexico, the US's other NAFTA partner, is also a major supplier of imported oil to the US.

favoriteFavorite Flag as abusive Posted 09:59 PM on 02/27/2008

Since you don't own a car/vehicle which I am envious of, then you are not aware of the 10% ethanol now in the gas supplies around the country. Nor are you aware of the dramatic drop in MPG a vehicle gets with this new mixture which creates a whole hell of a lot more fill ups at the pumps. And that is not including the upcoming problem with this new mixture fouling up the catalytic converters in the new automobiles.
No one ever gave it much thought when all the hoopla about how ethanol was a saviour to our up coming energy crisis but it is a corporate 'GOTCHA' moument that they knew would take in the gullible dumbed downed public.
Nothing, ABSOLUTELY NOTHING is being said about these issues that will pretty much wipe out families financially and totally. With these oil companies raking in 100s of billions of dollars of PROFITs a year and continuing to play the 'we have to keep raising the price' game when dropping the price would be not just a compassionate gesture that conservative corporate america wants everyone to believe with their 'appearance' kind of marketing ploys on the MSM which are more than will to allow but would actually stave off good bit of the upcoming depression we are sliding into.
I wish I could still live where I do but I am sure I will eventually have to sell or loose my home just so I can live in bicycle or walking distance of a place to work. But I will KNOW that when the total collapse of this country and million or billions of deaths are a result, THE GODDAMN CORPORATIONS ARE RESPONSIBLE!!!!

favoriteFavorite Flag as abusive Posted 12:14 AM on 02/28/2008

You forgot the 100's of billions of dollars in profits the military corporations are reaping in military contracts that protect the oil companies while they extract said oil in foreign countries. You forgot to mention the thousands of american soldiers, doing their duty, who died protecting the Halliburton's, etc., and the 25,000 maimed soldiers and 1 million refugees. Ethanol has already had an effect and we see it in the oversupply of oil. Their excuse now is that there are no refinery operations to produce more gasoline, thus the higher prices. BULL.

favoriteFavorite Flag as abusive Posted 12:21 AM on 02/28/2008

You corporate shills never give it a break, do ya? The corn price panic in Mexico came about because American companies are growing corn there to feed their livestock. Geez! Read and learn will ya?

"Not an either-or scenario
- The so-called "food vs. fuel" wrongly asserts that a choice must be made between corn for food and corn for ethanol; in reality, the U.S. corn supply is ample enough to satisfy the needs of food, fuel, and feed markets.
- There are limits on how much corn can and should be used for ethanol, but the marketplace is best equipped to make the determination.

Misunderstanding corn for human consumption
- Many don't realize that corn for ethanol and corn for human consumption are two different types. Field corn, the type used to feed livestock, goes into ethanol production. Sweet corn, a very small portion of the U.S. crop, is the type eaten by humans.
- Critics routinely overstate how much corn is consumed as human food; in reality, less than 10 percent of the U.S. corn crop is annually used for human food in the form of sweeteners, cereals, etc.
- Corn's customers, in order, historically have been: the livestock sector, export markets, processors (including ethanol), and lastly, humans.
- Those spinning the "food vs. fuel" debate suggest that U.S. corn exports go directly to feed the malnourished in developing countries and that ethanol directly removes food from those in need. In reality, the majority of corn exports from the U.S. are used to feed livestock in developed countries.
- There is more food per capita today on a global scale than ever before, according to the United Nations Food and Agriculture Organization. Lack of infrastructure, access to capital, political instability, and other issues are the more likely causes of hunger than scarcity of food."

http://www.ethanol.org/news/?newsid=4

favoriteFavorite Flag as abusive Posted 12:05 AM on 02/28/2008

We are really Fucking Up Bad..............for the longest time or most feared secret weapon was FOOD.

I`M THE FAT LADY.............TRALALALA!

favoriteFavorite Flag as abusive Posted 01:22 AM on 02/28/2008

How many formulas of gasoline do we really need? Isn't there over 30? reduce that to 1 or 2 for the whole nation.

Expand the refineries to allow increased production. We need gas. Like it or not.

favoriteFavorite Flag as abusive Posted 09:52 PM on 02/27/2008

and you just now noticed it..It's been eating at mine for years now...

favoriteFavorite Flag as abusive Posted 09:44 PM on 02/27/2008

A more appropriate title

SOARING GAS PRICES HAVE KILLED 90% OF AMERICAN FAMILIES BUDGETS

There is no recession.... the Bush Family has us headed for a depression the size of which will make the black and white 20's look like a tea party. More and more retailers will be looking for bankruptcy protection as the age of American consumerism ends at the gas pump. As the wealthy and tax free call Blackwater to provide them with protection from the restless mass of hungry unemployed

favoriteFavorite Flag as abusive Posted 09:29 PM on 02/27/2008

I can see down that road...completely plausible

favoriteFavorite Flag as abusive Posted 09:44 PM on 02/27/2008

since i don't own a car, i'm getting pinched by the FOOD PRICES! apparently drivers don't have to worry about what they can afford to buy at the supermarket after they've driven their gas guzzlers half a mile to get there.

favoriteFavorite Flag as abusive Posted 09:28 PM on 02/27/2008

I started walking to do my regular neighborhood errands. Post office, library, movie rental, bank, small grocery run. True, I live in town, but it's still a mile or more from home to the post office. Anyway, I bought a granny cart, and since November, I've cut my gas from filling up every week to every three weeks, and I've lost over twenty pounds. I know not everyone can walk to their errands, but it's sure made a big, wonderful difference in my life!

favoriteFavorite Flag as abusive Posted 08:14 PM on 02/27/2008

Congrats to you - what a role model you are!

favoriteFavorite Flag as abusive Posted 12:43 AM on 02/28/2008

Yep, Starting with Reagan, 30 years of twiddling our thumbs.

And now the price must be paid, but it won't be paid by our incompetent leadership, it will be paid by those who can least afford it.

favoriteFavorite Flag as abusive Posted 08:08 PM on 02/27/2008

In 1914, Henry Ford and Thomas Edison planned to build an affordable electric car (if not for the war and some shenanigans by the lead battery cartel, they might have succeeded). This was at the time when Edison was working hard to get everyone off the grid.

They say we're not ready for hydrogen (though Honda's ready) because there is no infrastructure. But there is. Hydrogen is a common industrial gas and there are several US companies who already pipe/truck hydrogen around...companies with revenues in the billions.

At the same time, we're happy to build infrastructure to pursue corn ethanol...which has the unpleasant side effect of pushing up food prices. Why grow wheat for human consumption when there are fat subsidies and high prices for fuel corn? A 50# bag of flour in my area has recently climbed from $9 to $30.

We have all the answers, we just aren't willing to put them into practice.

favoriteFavorite Flag as abusive Posted 07:22 PM on 02/27/2008

Ethanol, hydrogen, natural gas, electric, they're all comin-roun-the-bend! Don't fall for blaming the high gas prices on ethanol. Con-Agra and other huge multi-billion dollar corporations have bought out massive farm lands in Mexico and have moved Hog slaughter/beef slaughter and other similar operations there to avoid OSHA, EPA, etc. Look around the country; you won't see many hog slaughter operations, except in Iowa, Nebraska, anymore. The newer version of ethanol, cellulosic ethanol, won't use corn. It will use switch grasses and is a boon to the local farmer. This is why these huge corporations are spending billions in trying to get americans to buy into the idea that ethanol is a bad thing. Look, there is a surplus of oil on the market right now and they're still not dropping the price of gas. Whatever happened to that bull they used to feed us about prices going up because of terrorism and other fears that drove the market price of gas up? Well, now that there's a surplus, why aren't the prices going down? A shortage of refineries they'll say. Yeah, well, just like Con-Agra and other american companies (Ford, Cheverolet, Caterpillar, John Deere, Annin Valves, Johnson Controls, ETC.), have all managed to move operations to Mexico, it won't be a hard sell to any impoverished Mexican state to accept a deal with an american company to build refineries there, right across the border. As usual though, it's more cost effective for them to fool the public than to serve the constituents who make their livelihood possible.

favoriteFavorite Flag as abusive Posted 09:20 PM on 02/27/2008

My father is a long haul trucker, an independant, and told me last week that he has never seen so little freight moving or so many parked trucks. This is a very bad sign.

Meanwhile, the idea that owning a monster truck like Wadenelson1 mentioned in his post below doesn't seem to want to die. These vehicles are gas guzzling, polluting and a menace to anyone that isn't in a similar sized vehicle.

If we don't get a handle on steering consumerism towards sustainable practices we won't have much to sustain.

Opec "has us over a barrel" and these are Bush's friends who are doing it. The Saudi's have no love for the US, but they will take our money. They also sponsor terrorism against the US, a majority of the 911 attackers and plotters were Saudi and financing came from Saudi backers. Of course, bin Laden is Saudi.

Why didn't we just attack Saudi Arabia? The argument was stronger than it is for attacking Iraq... We could have tactically nuked the place flat and taken over the oil and reconstruction market for what we have spent on simply pacifying Iraq.

Instead we are treated to 100dollar a barrel oil while Dubya makes out with Prince Abdullah -

favoriteFavorite Flag as abusive Posted 07:04 PM on 02/27/2008

I wouldn't worry about the over-sized vehicle fella. I'm already seeing tons of 4-wheel trucks and SUV's with for sale signs on them. Come the weekend, when everyone's zipping around town in a 50 mpg, air-conditioned sporty SUV-lite, they're sitting at home grousing about gas prices.
http://autoshows.ford.com/174/2007/10/01/verve-concept-small-cars-in-ford%E2%80%99s-future/

favoriteFavorite Flag as abusive Posted 09:31 PM on 02/27/2008

A friend of mine owns a furniture store and he has now turned almost exclusively to getting his shipments via rail. His shipping costs are about 1/3 cheaper than by truck. I am seeing evidence of a resurgence of the rail system in the mid-south. Tracks are being repaired on abandon runs and engines and cars are being revamped. I think this is a very positive move. One engine and lots of cargo space--it makes sense. I am encouraged by this trend.

favoriteFavorite Flag as abusive Posted 07:28 PM on 02/27/2008

As I sat eating my lunch in Del Taco today, I saw an endless parade of trucks go through the drive-thru, starting with a 2008 F-350 to a Duramax to a Expedition, crew cab after crew cab, on, and on, and on. Literally, 25-30 supersized vehicles in a row.

On a lunch run. Not hauling anything in the bed. 1, 2 guys at most in each of 'em.

I remember when a lot of contractors used to throw their crap in the back of a dinky Toyota 4x4 pickup and call it good. Even haul a little lumber on a headache rack.

Not only do these monsters guzzle fuel, they make it unsafe to share the road if you try and drive an Accord or a Prius. My entire car sits below the bed of most. Talk about BLIND SPOTS. They can't even hear my horn over the bellowing of their diesel engines.

There will be abandoned supersize trucks parked everywhere in a few years, as well as all those who couldn't keep up the payments sitting on bank lots. Like car-henge, it will be a monument to American selfishness. I got mine!

What America has become, with the haves versus the have-nots, I feel more and more like an alien every day. An illegal alien.

favoriteFavorite Flag as abusive Posted 06:22 PM on 02/27/2008

And the bigger the truck ... the less chance it has anything in the bed.

favoriteFavorite Flag as abusive Posted 07:36 AM on 02/28/2008

Ben Bernanke played three card monty with the public today and blamed them for bringing inflation on themselves. Ben as the experienced con artist, hid the Bush debt 9 trillion, and Bush dollar .50 cents, below the table.

"Bernanke said there are "slightly greater upside risks" that inflation could turn out to be higher than the Fed currently anticipates, given the recent run-up in energy and food prices."Should high rates of overall inflation persist, the possibility also exists that inflation expectations could become less well anchored," Bernanke warned. If people, companies and investors think inflation will move higher, they will act in ways that could turn inflation even worse, a sort of self-fulfilling prophecy."

You'all brought it on yourselves, Uncle Ben.

favoriteFavorite Flag as abusive Posted 06:00 PM on 02/27/2008

Iraq is #4 in oil reserves. Think the war had an impact on these prices?

favoriteFavorite Flag as abusive Posted 05:53 PM on 02/27/2008

Why the Iraq war has been fully paid for by all the Iraqi oil revenues. Hasn't it?

Who was it that gave us this line?

favoriteFavorite Flag as abusive Posted 06:45 AM on 02/28/2008

Threaten? It's no longer a threat, it is already present and causing havok.

favoriteFavorite Flag as abusive Posted 04:10 PM on 02/27/2008