According to Reuters, gas prices in this country have hit record highs:
The average price for regular gasoline struck $1.738 per gallon, up a tenth of a cent from the previous record hit in late summer 2003, according to the motorist group’s survey of more than 60,000 stations.
While an all-time high in nominal terms, the current price of gasoline is still significantly lower than the inflation adjusted peak of $2.94 hit in 1981, and well below the prices seen regularly in European countries.
“Economists may find it helpful to discuss inflation adjustment, but a big increase in the monthly gasoline bill is a large burden to this country’s families and businesses regardless,” said AAA spokesman Geoff Sundstrom.
He ain’t kidding. High gas prices put a pinch on everybody, both personally and professionally. We all use gasoline in one way or another. When it costs more it hits us where it hurts the most…in the pocketbooks.
A lot of times we complain about oil companies raising prices or OPEC manufacturing supply shortages in order to drive up prices. Maybe something we should be looking at is how much gasoline is taxed in this country.
I don’t know what its like where you’re from, but here in North Dakota the tax on fuel is $0.21/gallon. To me that seems like an enormous amount. Can you imagine the amount of money the government could put back in our pockets if they lowered the tax even a nickel per gallon? Not to mention the positive effect it would have on businesses like pizza delivery and couriers.
I’m no economist. Maybe there’s a good reason for not cutting the fuel taxes that I’m not aware of, but given what I know right now it would seem to make a lot of sense to give Americans a tax break when it comes to gas. Especially in light of rising gas prices.