Pump Prices and Your Wallet
Everybody feels the pain of high gas prices. I am glad that I got a Toyota Corolla when I graduated from college. I get consistent 32+ miles to the gallon of regular. My monthly gas spending is often just shy of $200. Even if you don’t drive much or use a fuel efficient car, you aren’t immune. High gas prices affect the transportation cost of the businesses and companies that you and I all rely on.
So besides going out and buying a hybrid right this very moment, there is little the average consumer can do. Gas prices are going to continue to increase in the coming weeks. Relief may be very far away. I looked up the national average prices for regular unleaded gas at the Energy Information Administration website. Here is a brief summary of what I found.
Year |
Peak Price ($) |
When It Peaked |
| 2007 | $3.20 | 4th Week of May |
| 2006 | $3.03 | 1st Week of August |
| 2005 | $3.06 | 1st Week of September |
| 2004 | $2.06 | 4th Week of May |
| 2003 | $1.74 | 1st Week of September |
| 2002 | $1.45 | 3rd Week of October |
| 2001 | $1.71 | 2nd Week of May |
| 2000 | $1.68 | 2rd Week of June |
| 1999 | $1.27 | 2nd Week of December |
| 1998 | $1.09 | 2nd Week of January |
There is No Such Thing as a Summer Driving Season
Over the last ten years the peak price varies from the 2nd week of January to the 2nd week of December. That is quite a range. While there is some truth to a general rise in prices during the summer months, the actual peak price seen during any given year is far from predictable.
I was watching the TV the other day and overheard a news piece on rising gas prices and summer driving months. I believe it was the Fox Business Channel, but in any case, the talking head du jour was spouting off about summer gas prices. He stated that peak gas prices often occur in the month of May and that consumers may see relief soon. That’s crap. Maybe that is the case in his particular neck of the woods. Somehow, I don’t think he looks at his receipt from filling up and cringes like the rest of America does.
Relief May Be Coming, But It Might Be Next Year
Prices don’t rise in a straight line. While there are years that see a huge jump, like between 2004 and 2005, there are years where the peak price declines or remains flat.
That is good news for consumers. With the rampant price increases we are seeing now, I would not be surprised if prices took a year off in 2009 or 2010. It’s possible. A year of price stabilization would cool the average pace we are seeing in prices to a more normal rate historically.
Let’s be honest. I am not a professional financial guru who tracks oil prices and I can hardly predict the future. The best defense against rising prices, gas, food, health care or otherwise, is to have a plan. On paper on purpose as Dave Ramsey says so well. Budget your year conservatively and make sure you are living within your means first. Then invest aggressively to ensure that your nest egg with whip inflation in the long haul and not the other way around.