The price for regular, unleaded gasoline at a station near you is, more likely than not, above $3.00 a gallon, the highest in 26 years (when adjusted for inflation.) As a raw number, $3.07 a gallon is the highest EVER.
http://money.cnn.com/...
The price of gasoline has hit a new record high, averaging $3.07 for a gallon of self-serve regular in the United States, a survey reported Sunday.
When inflation is factored in, the new price trails the all-time high in March 1981. At the time, gasoline cost $1.35 a gallon -- in today's dollars, that's $3.13 a gallon, said Trilby Lundberg, publisher of the Lundberg Survey.
Still, in raw numbers, the $3.07 beats the previous high of $3.03 in August.
With a recession looming, the spike in gas is surely going to put consumers, yet again, in a bind. Can we say, "stagflation?" In addition to the more direct impact of high gas, it will have to be factored in that the gas will translate to higher prices in goods that are transported via freight trucks.
$3.07 a gallon in early May is a major warning flag, considering the peak of summer travels have yet to come. $3.07 a gallon is a 44% rise from the same time in 2005 and 8% higher than the same time in 2006.
NOTE: Sometimes my graph showing gas prices isn't showing. If you want to see how gas prices have changed, go here. Imageshack, the image host I used, may be down at times.
Peak prices for May 6, 2007
Atlanta: $3.19
Baltimore: $3.05
Chiacago: $3.79
Dallas: $3.09
Denver: $3.31
Los Angeles: $3.95
Seattle: $3.59
UPDATE 6:30 PM Eastern U.S.:
I'm updating this to clarify what I'm trying to say. Many here have commented on how high gas prices are a part of a greater change in handling our environment and our economy. I agree with this all the way, however, there are other implications.
Drgrishka1, for instance, said:
But isn't higher gas prices one of the suggestions for reduced gas consuption as part of the green agenda?
To which I replied:
Yes, though there is the economic angle as well. [Now this is both the short-term and long-term economic impact I'm talking about.]
And I think we agree more than we would disagree, because I too think this is part of changing the sources of fuel. But being inspired by high gas prices is useless if no one in our government is going to care to make a change as well. Don't forget the ones who run the Republican government have little concern for the environment and are quite thrilled with petroleum. We can have these endless summers of ridiculous gas prices and it still would not matter to them. The "green agenda" is not in their best interests.
Yes, in the long run, green energy will be way way more helpful to our environment, our economy, and our society. But we have to materialize this change instead of constantly speculating on it. We have to pull the trigger once and for all. Until then, we'll just keep seeing these new peaks every year until some major depression hits and we're really in trouble.
Basically, my thought on the high gas prices is that while it may be one major factor in shifting our resources of energy, it is not only in vain but economically harmful if we can't translate these high gas prices into action.