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March 7, 2011, San Diego – Obama addressed the nation this morning about rising gas prices. Here is a summary of what he said…
‘In an economy that relies on oil, everybody is effected by the recent rises in gas prices – farmers, truck drivers, restaurants, doctors, lawyers. Businesses feel it in their bottom line and consumers feel the pinch at the pump. For Americans already facing tough times, it’s a new burden.
Today as global demand is increasing, and turmoil in North Africa and the Middle East escalates, gas prices are rising again due to tightened supply.
But rising gas prices are not a new phenomenon. Three years age before the recession hit, a combination of factors including rising demand from China, gas rose to $4 a gallon. Then worldwide recession and a decrease in demand pushed prices back down.
Many small businesses say that as much as skyrocketing gas prices are cutting the bottom line, they’re doing everything they can not to raise prices — yet. Instead, businesses are realizing they can no longer overlook opportunities to reduce costs and increase efficiency.
Cost savings initiatives include routing optimization, using more fuel efficient cars and trucks, considering other fuel alternatives, investing in fleet tracking technology and, in at least one case, using hedges to offset rising costs.
The US Energy Information Administration (EIA) just released its updated short term outlook for gas prices.
EIA expects the retail price of regular-grade motor gasoline to average $3.56 per gallon in 2011, 77 cents per gallon higher than the 2010 average and about 40 cents above the projected price in the previous Outlook. EIA projects gasoline prices to average about $3.70 per gallon during the peak driving season (April through September) with considerable regional and local variation.
This is an 18 cent increase from today’s current gas prices, which are already astronomically high. Yesterday (March 8, 2011) the national average for a gallon of regular was $3.52, according to AAA, Oil Price Information Service and Wright Express.
EIA also predicts that the projected monthly average regular gasoline price will peak at $3.75 per gallon in June. Other analysts are saying gas prices will raise another $.50 by this years’ peak driving season.
I filled my gas tank up this morning in San Diego. It was $4.21 for a gallon of regular unleaded. Premium gas was well over the $4.50 mark.And it’s only March! Yikes! Gasoline prices typically fall in the winter and rise in the spring as refiners switch to more expensive summer blends of gasoline. Since 2000, prices in May have been 52 cents per gallon on average higher than in February, according to the Energy Information Administration. Right now, California averages the most expensive fuel at $3.90 per gallon.
High gas prices can be a tough burden on small businesses. The recent surge is now putting pressure on already-price-conscious consumers and small businesses that rely on fuel to keep their businesses up and running. The situation is forcing tough choices on small-business owners who are reluctant to charge more for fear of losing cost-conscious customers.
There is a psychological effect of increased gas prices, as it creates more uncertainty and anxiety for small businesses. No one knows how high it will go. This is definitely on everyone’s mind. For example, Blank Label, a Boston-based start-up that sells customizable men’s shirts, told Inc Magazine that he has already seen quarterly 10-15 price increases from DHL, their shipping partner, in addition to higher input costs from the rise in price of raw materials. Like many retailers, Blank Label is seeing the rise in the price of gasoline affect their bottom-line. “There’s definitely quite a bit of margin pressure,” says Fan Bi, the company’s founder.
In light of the recent rises in gas prices, it is important to remember that how you drive can affect your vehicle’s fuel mileage (MPG). However, you have to know the difference between a good driving tip and a bogus one in order to really slash your gas costs.
Unfortunately there is a lot of confusion about certain driving and vehicle issues. Let’s try to clear the air on a few driving myths.
Driving Myth #1:
1) Increase Tire Pressure. To get the most out of a full tank of gas, you should pump up those tires.
The Reality: Yes, it’s true that driving on under-inflated tires can cost you up to 3.75% in fuel economy. However, over-inflating tires can actually be dangerous. Tires that are overinflated have trouble getting a grip on the road, which can easily cause an accident.Have you ever seen a blow-out on the freeway. Drivers definitely don’t want that to happen.
n light of rising gas prices, here are some “Green” driving tips from AAA to help you conserve fuel. The benefits of fuel conservation include a healthier environment, financial savings and improved driver safety. The type of vehicle you drive, how well it’s maintained, and where and how much you drive are the most important factors to consider when trying to conserve fuel.
The high cost of gas is going to take its toll on the entire nation. Fears of inflation continue to fester as the cost of gas is expected to continue increasing throughout 2011.To conserve gas, drivers should slow down and find ways to do more with less.
A variety of transportation modes and commuting options offer choices to meet individual travel needs and help ensure a healthier environment. People are encouraged to try alternative options to driving in order to conserve fuel and protect the environment. For example, to be a more eco-friendly things you could try:
1. Carpooling. Carpooling, also referred to as ride-sharing, allows people to travel together to a destination in one vehicle.
2. Walking or riding bicycles more. Walking instead of driving is good for your wallet and your waist line.
3. Taking the train or coaster.
4. .Utilizing other public transportation options. Public transportation is an essential part of a balanced transportation system.
Trip Chaining
Trip-chaining – combining errands into one trip – is another option to save time and money. Here are a few trip-chaining tips from AAA:
Gas prices in the state of California are the highest in the US. The average price of a gallon of regular unleaded gas in California is now $3.897, the highest in the entire US, according to AAA. California gas prices are now even higher than the 2 states that usually have the highest gas prices – Alaska and Hawaii.
In San Diego this weekend, gas prices ranged from $3.81 to $4.19 per gallon of regular gas, according to website GasBuddy.com. Gas Buddy listed San Francisco as the most expensive city for gas in the country at an average of $3.93 a gallon, followed by 15 other cities in California. In Los Angeles, it’s hard to find a station where the price of regular gas for less than $3.95 a gallon.
Gas prices are predicted to continue rising due to turmoil in Libya, among other factors. Nationwide, the average price of a gallon of unleaded gasoline is $3.509, according to a daily survey by AAA. Gas prices are $.76 higher than they were a year ago.
The AAA Fuel Gage Report is a public service of the United States of America’s largest motoring and leisure travel membership organization. The report is updated every day from several sources. There are up to 100,000 stations surveyed daily, and daily surveys from Oil Price Information Service (OPIS) with average national, state and local prices for gasoline, and diesel.
Gas prices are incredibly high and climbing. World oil prices are trading near some of their highest levels in almost three years as violent combat continues in Libya, one of Africa’s biggest crude oil producers. Many people wonder just how high prices will go, as fears arise that the fighting may thread throughout the Middle East.
Gas prices across the US have skyrocketed recently. A new survey of US fuel prices says the average price of regular gasoline in the United States has jumped 33 cents per gallon in the last two weeks, the second biggest price increase over a two-week span on record. Gas prices are expected to continue rising, according to the fuel price survey.
The latest Lundberg Survey, released Sunday March 6, 2011, found that gas prices have risen nearly 82 cents since September 2010. Today the average price of self-serve regular gasoline is $3.51; the average price for mid-grade is $3.64, and premium gas is at $3.75. Diesel fuel is up 29 cents, to $3.88 a gallon.
This week, oil prices hit a 2-year high at $103, reaching the highest level since September 2008. Gas prices have skyrocketed by an average of 35 cents per gallon since an uprising in Libya started a few weeks ago. A gallon of regular unleaded gained another 4.4 cents overnight to a new national average of $3.471 per gallon, according to auto club AAA, Wright Express and the Oil Price Information Service. Here in California, gas prices are well over the $3.75 mark.
Many experts predict the cost of fuel will continue to rise throughout the end of summer in 2011. The myriad reasons oil prices are trending up include:
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