Ann Arbor area motorists watch rising fuel prices and wonder: How bad can gas costs get?
The bp station on South Main near William Street in downtown Ann Arbor is displaying the dreaded '4' in its pricing for higher-cost blends, and regular unleaded is getting closer to that point.
Melanie Maxwell | AnnArbor.com
What are you willing to pay for a gallon of gas?
For many motorists, that number no longer can be found at the fuel centers in Washtenaw County, as drivers around Ann Arbor have been stunned — along with most of the rest of the county — by yet another jump in the price.
At this stage of the gas-price arc — which is only rising in Michigan — we thought it was time to address some key points in the fuel-price scenario:
• Yes, it’s getting worse.
The average gas price in Ann Arbor is now $3.83 per gallon. And in Michigan, the average price is $3.75 per gallon - up 14.5 cents in the last week.
Remember all of the threats — or forecasts, as the case may be — that gas prices could reach $5 per gallon this year? Did you tune them out? Turn numb to them? Over the last few weeks, we’ve inched closer to that point. And last week we took a big leap.
Now many among us are adjusting to the fact that we’re no longer just inching toward that plateau.
“People are quite upset,” said Nancy Cain of AAA Michigan.
Unrest in the Mideast, price spikes on crude oil due to speculator and global demand are all factors.
And if those weren’t bad enough, there’s also a spring refinery dynamic: They’re changing over from winter to summer blends. And while that happens, supply tightens — driving the price even higher. That one, Cain said, should be temporary.
• No, no one knows how high it’ll go.
The national average has trended upwards since September, when the country was paying what now seems like a bargain: $2.68 per gallon.
So now that we’re staring down a $4 per gallon average, where will it peak?
The answer, experts seem to agree: It’s anyone’s guess.
Some spikes are predictable - but that’s not what we’re seeing right now.
“It’s very unusual for prices to go up this much this time of year before you get into the summer driving season,” Cain said.
The last time this happened, we ended up in the Great Recession. This time, economists warn that it’s a variable in what’s expected to be continued recovery.
“Prices could moderate,” Cain said, “but in the short-term, we don’t see that happening.”
• What’s the pain from $4 per gallon?
People who buy premium fuel in the region already are answering that question — since it hovers about 20 percent per gallon more than regular unleaded, there are people in our midst who’ve paid it.
Someone buying 14 gallons at the average price in Ann Arbor will pay $53.62. In September, they’d have paid $37.52 - or $16.10 less.
Filling up weekly? That’s an extra $65 per month dripping into your fuel tank every four weeks.
And if you think that’s not so bad, consider this: Someone making minimum wage would have to work an extra 8.78 hours per month — or 2 hours per week — just to cover the gas increase in that “average” scenario.
For many of us, experts fear, the extra money that we’re throwing at our vehicles comes from our disposable income budgets — meaning that there’s concern that we’ll stop spending a corresponding amount at restaurants, entertainment venues and stores.
• How are businesses dealing with it so far?
So far, most are just trying to absorb it — since the record high of $4.11 per gallon set in July 2008 prompted all sorts of driving efficiencies for the delivery drivers and networks that rely on fuel use.
One of the most obvious areas of concern is in car-buying, which is fueling some of our economic recovery. Light vehicle purchases are forecast to jump from 13.1 million units this year to 15.9 million in 2013.
Can Americans still afford to buy those cars? And are automakers producing enough of the vehicles that will sell under a high-fuel scenario? What is the gas price tipping point for changing auto-buying habits? All of those questions will be driving producer decisions this year. Meanwhile, the top U.S. seller in March was the Ford F-Series trucks, which now get about 21 mpg in city driving.
Con-way Freight, based in Ann Arbor Township, has 33,500 tractors and trailers on U.S. highways, making “less than truckload” shipments.
“The increase in gas prices are a serious concern both to us as a company and our customers,” said Gary Frantz, a spokesman.
Many of Con-Way’s customers operate on a “just in time” production or inventory cycle, Frantz said. As a result, he said, “the cost of fuel doesn’t change what their supply chain needs in terms of service and support.”
Gas prices aren’t changing operations at the Marco’s Pizza on 4068 Packard, either.
The delivery fee at the independently owned store is $2.50, and drivers get half of that, said manager Garrett Jones.
Some deliveries don’t cover the cost of the drivers’ gas, he said, if they’re on the edge of the market area, and so far, tips aren’t making up the difference.
That’s OK at this point, Jones said. “The prices are hurting everybody, not just drivers.
• How can the average driver fight back?
The global complexities surrounding the oil market make that answer difficult.
Demand fuels some of the price increases - and that’s now demand on a global scale, as vehicle sales grow in emerging markets. Consuming less should tip the balance, but only if it hits a point of “critical mass” among many drivers.
Yet so far this year, the International Energy Agency reports demand as stable, and it notes that the world oil supply rose to an all-time high in February. Even that agency isn’t celebrating the price jump. It warns members that “high oil prices entail significant downside risks to this outlook.”
For the average driver, the alternatives are obvious, but seem worth repeating for those who need a little push to action.
Public transportation via the Ann Arbor Transportation Authority ($1.50 per full-price fare) can be an option in many areas of Washtenaw County. Biking, walking, and finding efficiencies in your driving routes are tried but true strategies.
Carpooling is another possibility: “If you could even do it one day a week, it’ll make a difference,” said Cain.
Fuel-efficient vehicles also take on a more important cast during periods of peak gas prices, and they can be economical choices based on overall price, too.
Then there’s the alt-fuel fleet: More expensive, in many cases, but more economical on fuel. If nothing else, high gas prices should make Americans more aware of these products.
There’s also nothing wrong with letting publicly held big oil companies know what you think. They all have customer relations departments and should be able to provide answers to questions and data on performance, indicating things like whether record profits also tie in with near-record price hikes. That’s happened before, and we can’t assume that they’re just covering their own rising costs, too.
One last word: It won't help to take out frustration when you're filling up. Many gas stations in Michigan operate on razor-thin margins from fuel sales. They've been hurt by a drop in consumption here since about 2004.
Paula Gardner is Business News Director of AnnArbor.com. Contact her at 734-623-2586 or by email. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.
Comments
cnmne
Fri, Apr 8, 2011 : 3:26 p.m.
One strategy for reducing transportation costs that hasn't been mentioned: slow down. Reducing highway speed from 80mph to 60mph will produce an instant 20-35 percent saving in fuel cost. It's something everyone can do -- today. No new car, no high tech, no mass transit.
jasna
Fri, Apr 8, 2011 : 3:05 p.m.
I remember the president saying something like he wouldn't be surprised if it reached $5.00/gal by summer. Guess what that means? Almost a free pass for oil companies to incrementally raise prices so we are at $5.00 by summer. I bet they hover around $4.99 for a long, long time... Kinda like the health care law that said insurance companies will not be allowed to raise their premiums more than 30% during the time the law gets implemented. My husbands health premiums were immediately raised by 30% at the very next open enrollment. They were basically given that "green light".
outdoor6709
Thu, Apr 7, 2011 : 1:43 a.m.
We can create all sorts of stupid excuses to due nothing about our problems or we can do something. It appears the left would prefer we just go broke. It is impossible to finance a social welfare economy with a shrinking economy. Or had you not figured that out from the $1.6 trillion budget deficit each of the last 3 years. Same excuse for not drilling for oil in ANWR that Clinton used. At least you could try thinking up something new.
Edward R Murrow's Ghost
Thu, Apr 7, 2011 : 2:16 a.m.
The economy is growing. <a href="http://www.data360.org/dsg.aspx?Data_Set_Group_Id=231" rel='nofollow'>http://www.data360.org/dsg.aspx?Data_Set_Group_Id=231</a> FY 2008 deficit = $1 Trillion FY 2009 deficit = $1.9 Trillion FY 2010 deficit = $1.6 Trillion Source: <a href="http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm" rel='nofollow'>http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm</a> The primary reason for the doubling of the national debt from 2001 to 2009 (Bush's eight budgets) were massive tax cuts in conjunction with two overseas wars--the first time in the nation's history we fought a war and cut taxes, and here we fought TWO wars. Those darned pesky facts just keep gettin' in the way! And what any of this has to do with gas prices is . . . . . . ???? Good Night and Good Luck
outdoor6709
Thu, Apr 7, 2011 : 12:19 a.m.
Minor math problem does not chance the facts. <a href="http://parkercountyblog.com/2011/03/14/gas-price-too-high-thank-the-greens-dems-and-clinton/" rel='nofollow'>http://parkercountyblog.com/2011/03/14/gas-price-too-high-thank-the-greens-dems-and-clinton/</a> "Gas price too high? Thank the greens, Dems, and Clinton Posted on March 14, 2011 by parkercountyblog by Henry Lamb Henry Lamb In December, 1996 Bill Clinton vetoed legislation that would have added more than a million barrels of domestic oil per day to help reduce America's dependence on foreign oil. His reasoning at the time was that ANWR could not produce oil for ten years, a laughable excuse So what if oil goes to Japan. We import more than we export so it helps the US trade deficit. Creates JOBS JOBS. Or are blue collar jobs a problm for the AA elite?
KJMClark
Thu, Apr 7, 2011 : 12:46 a.m.
The Energy Information Administration: "In all three ANWR resource cases, ANWR crude oil production begins in 2018 and grows during most of the projection period before production begins to decline. In the mean oil resource case, ANWR oil production peaks at 780,000 barrels per day in 2027. " "Analysis of Crude Oil Production in the Arctic National Wildlife Refuge" <a href="http://eia.doe.gov/oiaf/servicerpt/anwr/results.html" rel='nofollow'>http://eia.doe.gov/oiaf/servicerpt/anwr/results.html</a> So the EIA says if we started now, production wouldn't start until 2018, and would top out at around 780k bpd in 2027, dropping from there. They project a 75cents per barrel reduction in world light, sweet oil prices in 2027 if ANWR is drilled. Seems like that would lower gas prices by about 2cents.
Edward R Murrow's Ghost
Thu, Apr 7, 2011 : 12:39 a.m.
The "minor math problem" was followed by a complete misunderstanding of how the oil market works and about how any opening of ANWR would impact the price of gasoline (the topic of the article and of the discussion, after all). So now, with that illogic laid bare, opening ANWR isn't about the price of gasoline, but is about the trade deficit and jobs? Wish you "Drill baby, drill" types would make up your minds. Good Night and Good Luck
Edward R Murrow's Ghost
Wed, Apr 6, 2011 : 2:46 p.m.
"Has anybody ever given any thought to what high gas prices do to poor people? If you can barely afford to buy the gas you need to get to work, and then the price doubles, it has a drastic affect. . . . The right, who supposedly hates to poor, wants lower gas prices, but are blocked at every attempt to make it happen." This would be a full-blown ROFL were it not so fundamentally sad. At the state and/or national levels the "right" is proposing or has already enacted: Drastic cuts to job training programs Drastic cuts to Pell Grants and to Higher Ed Loans Drastic cuts to Head Start Drastic cuts to Medicaid Drastic cuts to Food Stamps Drastic cuts to Housing subsidies Drastic cuts to unemployment insurance An end to the Earned Income Credit I could go on. But, apparently, the "right" has poor people's best interest at heart with "Drill, baby, drill" Not to mention those of Exxon, Valero, BP, Chevron, Shell, and Halliburton, to name just a few. Seriously?? Low gas prices for the poor? Laughable. Good Night and Good Luck
bornblu
Wed, Apr 6, 2011 : 9:37 p.m.
Unfortunately Ghost, another victim of this increase in gas prices likely will be the WISD millage (one of the few governmental expenditures that can be controled).
Kelly Davenport
Wed, Apr 6, 2011 : 5:23 p.m.
Ghost and Moscow, please keep it on topic and civil.
Moscow On The Huron
Wed, Apr 6, 2011 : 1:46 p.m.
Has anybody ever given any thought to what high gas prices do to poor people? If you can barely afford to buy the gas you need to get to work, and then the price doubles, it has a drastic affect. Most of us can overcome it by absorbing it into our overall budget and making up for it by spending a little less on something else, but for a low-income person it can mean the difference between getting to work and not getting to work. The right, who supposedly hates to poor, wants lower gas prices, but are blocked at every attempt to make it happen. The left, who supposedly speaks for the poor, but who are actually only interested in reducing driving in order to appease Gaia as part of their cult of human-caused climate change. wants higher gas prices.
Tru2Blu76
Wed, Apr 6, 2011 : 3:04 a.m.
Doesn't anyone understand the so-called Free Market anymore? Supply and demand determine price: that's the only thing which applies since the only influence government (of any administration since oil companies were formed) has had - always originated from the oil companies themselves. We, along with the British, French and Germans, literally created whole countries in the Middle East on top of the greatest oil deposits. That was so that American, British, French and German oil companies could look forward to and continue enjoying a continuous, unprecedented flow of profits. Every president and every congress since the 1920s have done nothing but protect oil company interests - not only in the Middle East but in South America as well. And WHAT group supplied all that endless, insatiable demand for petroleum? Yeah - it was US, the consuming populations of the U.S.A. and those other countries. Our own uncaring gluttony and insistence on "personal mobility" has brought us to this point where supply has become doubtful if not threatened. Naturally, the Market is working as it should and will. It's been like a 70 year long party - now in it's later hours. The party isn't over but the party goers are starting to complain about the cost of the drinks.
outdoor6709
Wed, Apr 6, 2011 : 1:55 a.m.
Have we forgotton about ANWR? Bill Clinton said it would do no good to get oil from ANWR because it would take 10 years. That was 25 years ago. Current Alaskan production uses only 30 % of the Alaskan Pipeline. 500,000 more barrels a day production would produce 125,000 jobs in US, creating royalities to treasury, income taxes to IRS and reducing our balance of payments. All with no downside. So any idea why we do not pursue this option?? Oh yeah I remember it was 75 degrees today. Now that Al gore has gotten rich spreading a lie, maybe we could move on and have a real growth energy policy.
Edward R Murrow's Ghost
Wed, Apr 6, 2011 : 2:22 p.m.
2011 - 25 = 1986. Ronald Reagan, not Clinton, was president in 1986. Oil in ANWR is just as likely to go to Japan and other countries in East Asia as to the United States. Source: <a href="http://seattletimes.nwsource.com/html/localnews/2002245699_export17m.html" rel='nofollow'>http://seattletimes.nwsource.com/html/localnews/2002245699_export17m.html</a> In any event, it would have little if any impact on the price of oil. Oil is sold on the global market and it is the global market that dictates its price. ANWR is a drop in the bucket compared to the global supply and therefore will have little price impact. Source: <a href="http://www.usnews.com/news/national/articles/2008/05/23/arctic-drilling-wouldnt-cool-high-oil-prices" rel='nofollow'>http://www.usnews.com/news/national/articles/2008/05/23/arctic-drilling-wouldnt-cool-high-oil-prices</a> Any other "facts"? Good Night and Good Luck
julieswhimsies
Wed, Apr 6, 2011 : 1:45 a.m.
I drive only when it's absolutely necessary. These days you need another job to pay for the fuel and maintenance of the car you drive to your first job...and then there's the fuel you use to get to your second...rinse and repeat.
stunhsif
Wed, Apr 6, 2011 : 1:05 a.m.
"Meanwhile, the top U.S. seller in March was the Ford F-Series trucks, which now get about 21 mpg in city driving. " Wrong and big time wrong. The F 150 with the standard V-6 ( which accounts for about 10% of sales) gets 17 MPG city and 23 MPG highway. The big seller ( 5.0 liter V-8) gets 15 mpg city and 21 mpg highway. That is for the standard rear drive trucks, add 4-wheel drive and the mileage drops by another 1 mpg. I got rid of the SUV's two years ago and got "reasonably" fuel efficient cars, I am not too worried about higher gas prices and don't blame Obama or former President G.W. Bush for this issue. We do need to increase drilling in our country for many reasons. The most obvious reason is we could then quit kissing the back sides of the middle east.
Mike D.
Wed, Apr 6, 2011 : 12:37 a.m.
In 2050: * More people will own small, fuel efficient cars and use rentals or car shares for the rare occasions when they need something larger. * "Bedroom communities" 50 miles from where anyone works will go back to being agriculture. * We'll continue to raise urban density (tall buildings) in mid-size towns like Ann Arbor, making walking/biking/bussing to work feasible for people of moderate incomes. * Next-generation batteries might make widespread adoption of electric cars feasible in our lifetime. * Japan notwithstanding, nuclear power will allow us to power our homes, rail, and electric cars. All of the above require major investment in infrastructure. Rail, safe nuclear power, and even electric car charging stations cost a lot, but they will allow us to wean ourselves off foreign oil. Obama might or might not have the stomach to drive the investment. No Republican will. In the meantime, I will enjoy my gas guzzlers.
Redleg
Tue, Apr 5, 2011 : 10:36 p.m.
We are starting to pay the price for our auto-centric far spread suburban lifestyles, what we and our parents before us, think of as "normal" -- The 30 mile plus drives to get anywhere, the miles of roadways, the seas of parking lots... This is unsustainable and is slowly ending, but it is hard to see, because it is what we grew up with. The "car as king" culture has only been top dog for the last 70 or 80 years-- Just an average person's lifetime, but as our primary motive means (at least for the masses) its time is waning.
towny
Tue, Apr 5, 2011 : 9:40 p.m.
Oil company's will show billions of dollars in profit at there next earnings report. This country should of been off oil dependence 30 plus years ago. But, the oil company's lobbyists own our government and would not allow alternative energy to happen or grow in this country. It's the american voters fault for allowing this dependence to continue. Look at the elected government they have put in place. Your president should do something. But, he is owned by them also. Watch the next oil company's earning reports and you wonder what happened?
Domey
Tue, Apr 5, 2011 : 9:05 p.m.
Looks like another banner year for "big oil"! By the way, whatever happened to that pesky little leak in the Gulf of Mexico? I guess it must have just disappeared.
jns131
Tue, Apr 5, 2011 : 8:57 p.m.
Remember when gas hit $4 a gallon? A lot of people stayed home. Didn't go far from home and the economy suffered due to this effect. We need to open up our oil wells and start hitting a few in North Dakota and stop being dependent on the middle east. Once this happens? Then we can see oil prices reduce. I hate to say it but we are going to go from a recession to a depression if gas prices continue because no one can go out and do anything. But then again, there is Net Flex. Great way to stay home and save money for gas. Dearborn was $3.79 this morning. Guess I am going to fuel there because Ann Arbor is way too pricey for me.
applehazar
Tue, Apr 5, 2011 : 7:28 p.m.
Be happy with $4 - in another 30-45 days it will be $5 and we will be reminicing of the $4 a gallon days.
DonBee
Wed, Apr 6, 2011 : 12:50 a.m.
$5? I suspect we will see $6 this summer if China and the rest of the world continues to climb back out of the recession and the middle east does not settle down. In fact $8 a gallon would not surprise me at the 4th of July.
5c0++ H4d13y
Tue, Apr 5, 2011 : 7:09 p.m.
Insert canned populist rhetoric about Big Oil and futures markets here.
Moscow On The Huron
Tue, Apr 5, 2011 : 6:58 p.m.
Remember, Obama thinks it's a good thing when the price of gas goes up, as long as it doesn't go up too fast.
Edward R Murrow's Ghost
Wed, Apr 6, 2011 : 3:24 p.m.
"Well, yeah, if you ignore the tiny little detail that he actually SAID it." You can, of course, provide a link? Should be easy. If the president said it, dozens of news sources should carry it. Good Night and Good Luck
Moscow On The Huron
Wed, Apr 6, 2011 : 1:39 p.m.
Well, yeah, if you ignore the tiny little detail that he actually SAID it.
DBlaine
Wed, Apr 6, 2011 : 2:32 a.m.
Lame. At least try to bring it once and awhile. If I want GOPher blathering, I'll look at Fake News.
Moscow On The Huron
Tue, Apr 5, 2011 : 6:46 p.m.
Gas prices have doubled since Obama took office. During that time the value of the dollar has also fallen, making it even worse. Thanks for nothing, Obama. In 2012 we're going to send you Barack to Chicago.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 8:56 p.m.
Yes, I understood when OBAMA took office. And 6 months before he took office, gas was $4.05. And, he asks again (sarcasm button apparently is not working on my computer): I guess that was Obama's fault, too? Good Night and Good Luck
Terminal
Tue, Apr 5, 2011 : 7:44 p.m.
I guess he's got ya there Ed. Then again Bush was president on 9/11 and claims we were never attacked on his watch... except for that one day.
Moscow On The Huron
Tue, Apr 5, 2011 : 7:10 p.m.
"s i n c e O b a m a t o o k o f f i c e." That's January 2009 - present. July 2008 is not within that range. Good Night and Good Gaffes.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 6:40 p.m.
"big money is hated by this administration? then why not let them fail....." Time to stop mainlining Fox News. Top financial advisors in the Obama administration come from Wall Street firms (e.,g CofS Daley), the most important of them coming from Goldman Sachs (e.g., Sec. Treas. Geitner). Obama appointed GE CEO Jeffrey R. Immelt (the same GE that took $3 billion in federal subsidies last year and that paid no tax whatsoever on a $15 billion profit) as his liaison to business. These guys hate "Big Money"? Really? Bizarre. Good Night and Good Luck
Hot Sam
Thu, Apr 7, 2011 : 1:03 p.m.
Ghost is correct...these guys are as in bed with big money as any one has ever been...
Tru2Blu76
Wed, Apr 6, 2011 : 2:44 a.m.
Yours is truth well said. Saving me the trouble since I won't try to top the best when it is enough. ;-)
Mr. Tibbs
Tue, Apr 5, 2011 : 6:14 p.m.
when the big bad bushman was in office all you liberals were crying out for his head....what now? who is to blame today? none of you still have been able to put two and two together. when big oil was making big profits, all of you were crying foul. But then, when the big money banks and the big money auto companies started having trouble, nobody (BECAUSE THE MEDIA) built it that way, allowed anyone to ask why not use the big profits from the oil glut of money they were making off of us to be put to good use like bail-outs.....? nope they came to you and I again. this didn't start with obammy, but the way things are going, it looks like it will end with him. big money is hated by this administration? then why not let them fail..... to quote Dan Akroyd in the movie Trading Places.....the only way to make rich people suffer is to make them poor people..... no we give them more of our money
Ignatz
Tue, Apr 5, 2011 : 6:37 p.m.
Mr. Tibbs, I'd beinterested to see how we could get Big Oil to use their obscene profits to bail out two other private industries. Any ideas? I'd be all for it, probably.
Wolf's Bane
Tue, Apr 5, 2011 : 5:41 p.m.
My family owns one car and we live within 5 miles of our respective work places; my wife being only 1.5 miles away from work. She drives, I ride my cycle. We use our car for groceries, events, family, and driving to the airport. We have made considerable changes to reduce our carbon footprint and cut way down on our gasoline expenses. Gas could top 10 dollars a gallon before we would have to make another serious adjustment to our lifestyle. I have also come to love cycling to work and so has my waistline. If these prices won't get you active, nothing will. Fight back, reduce your gasoline consumption!
KJMClark
Wed, Apr 6, 2011 : 2:08 a.m.
Atticus - I'm not trying to force anything on you. You deal with expensive gas your way and I'll deal with it mine. But don't forget that biking is exercise, so I don't throw away anything, I get exercise and pass by the gas stations without worrying about the prices. Jns - I just biked to work - five days a week - all winter. Looks like I've got that ice thing figured out. It's not hard. And zero wind chill is just something you dress for. I get zero wind chills most of the winter. This is Michigan, after all. Don and Stun - gas prices are headed higher. Think about things however you want, but prices will head higher until the economy crashes again and people figure out how to live with less. Eventually we'll ship things by train again because the costs are so much lower. I don't set the gas prices, I'm just pointing out where they're headed.
stunhsif
Wed, Apr 6, 2011 : 1:46 a.m.
way too simple Bill. I work in the trucking business. Our fuel surcharge has gone from 20% ( July 2010) to 32% currently for every shipment made by our customers. If a small shipment was $100 dollars in July it was $120 with the fuel surcharge added. Today that same shipment is $132.00. Trust me, our customers don't eat that higher cost, they pass it on to you. We haul everything from consumer products (Procter&Gamble) to auto parts(Ford--GM--IAC--Lear) . So in other words, everything you buy at the grocery store is going to go up in price. Higher fuel prices cause inflation which raises the price of everything you and I buy.
DonBee
Wed, Apr 6, 2011 : 12:48 a.m.
When we moved into our house, it was 5 and 10 miles in opposite directions to our jobs. We picked to minimize commutes. Over the last 20+ years the jobs have moved and changed. If you own a home, it may be that it works initially, but with the changes in the economy there is no promise you will be close to your job in a decade.
jns131
Tue, Apr 5, 2011 : 9:04 p.m.
Must be nice to live in Ann Arbor. O thats right, you make enough to pay the taxes there. So we all need to move within a mile of our jobs to ease the gas crunch? I really don't think so. Glad to hear you are able to use a bike Sometimes we can't and the AATA buses do not get us close enough to a Wal Mart or some place without the use of a car. I do not use my bike when the wind chill hits 0. Sorry I draw the line. Good luck with that bike on ice.
Atticus F.
Tue, Apr 5, 2011 : 8:21 p.m.
Well when the people I love are sick, I take them to the doctor. They may require more than "ibuprophen", and I would rather hear it from a doctor first hand, than to assume thats what my doctor would recomend. Would you also "give them ibuprophen" if they had a temp of 106? what if they had the stomach flu? And what if your doctor told you the symptoms required a doctors visit? Also, if you want to throw away precious hours of YOUR life biking to work in 90 degree weather, or standing at the bus stop in sub zero temperatures, be my guest...But please don't try to force your misery, or your ideals on others.
KJMClark
Tue, Apr 5, 2011 : 7:47 p.m.
Don't know about Bill, but yes, I do bike to work in January. When our kids have a 103 fever, we give them some ibuprofen. That's what the doctor tells us to do. Why do you ask?
Atticus F.
Tue, Apr 5, 2011 : 5:48 p.m.
Do you cycle to work in January too? How bout when your kids are sick... do you have them sit on the handle bars when you take them to the doctor with a 103 degree fever?
Terminal
Tue, Apr 5, 2011 : 5:32 p.m.
Facts are useless to the fact-less talking point posters. It didn't take much time until someone regurgitated Michelle Bachman's and Sarah Palins ridiculous attack on Obama blaming him for rising oil prices. And this after the TransOcean execs get bonus $$ for safety.
jns131
Tue, Apr 5, 2011 : 9:06 p.m.
O you didn't hear this one. BP execs also got bonus raises for a high safety rating. This comes after the heels of the BP oil crises. Sad isn't you can give the execs a huge bonus for oil safety? Sad sad sad.
Atticus F.
Tue, Apr 5, 2011 : 5:29 p.m.
Ben Conner, maybe you'll feel gas prices are fair when the average person at Mcdonalds has to contribute 70% or their wage to get to work? As stated earlier, We need to look at the equation as the price of gas as it relates to a persons wage. Thats the true measurement of Cheap vs. expensive.
John B.
Tue, Apr 5, 2011 : 10:51 p.m.
What exactly do you feel you are 'owed?' In Yemen, people spend 80% of their income on getting enough food to survive. You think you've got it rough? Sheesh.
SonnyDog09
Tue, Apr 5, 2011 : 5:27 p.m.
I've been hearing that we will run out of oil "any day now" since the 1970s.
Terminal
Tue, Apr 5, 2011 : 5:37 p.m.
So if there's plenty of oil, what's keeping the oil producers including the ones in the USA from tapping their already existing wells and selling it? demand sure seems high so you would think they'd be pumping and selling like gangbusters. Oil speculators and producers drive the price of oil, not consumers. Produce less keeps the price and profits high. Speculation with oil produced collusion has the same effect.
zip the cat
Tue, Apr 5, 2011 : 5:21 p.m.
I didn't hear all the whiners and complainers of sky high fuel costs when they raised your cancer sticks to a average $6.00 a pack or when they raised beer to $12.00 a 12 pack. Maybe if you didn't blow $100.00 a week on smokes and beer( I know people who spend more than this) You'd have money for gas. Whats more important?, Getting to work and keeping your job Or buying your beer and smokes. I am sorry to say but I think gas will stay in the $4.00 to mid $5.00 a gal in the near future I hope I am wrong as I think this country will go into a deep,deep recession with 15-20% unemployment if gas gets to $5.00 plus
Atticus F.
Tue, Apr 5, 2011 : 5:39 p.m.
Also, let's not use this as an excuse to force our morals on others. Bottem line, people should be able to have extra spending money after a hard days work. And weather they spend it on a movie, a dinner out, or something that you are morally apposed to is irrelevant.
Atticus F.
Tue, Apr 5, 2011 : 5:31 p.m.
Have you made any consideration for people who don't smoke or drink, and who are still having trouble affording transportation?
KJMClark
Tue, Apr 5, 2011 : 5:15 p.m.
I was just figuring this out this morning. For our family, $5 a gallon would be about $200 a month, and we'd start cutting back a bit. But our real cut-off would be around $13 a gallon - that would be $500 a month. It won't get there anytime soon, but $5 a gallon might be only a few months away. It really helps to have both breadwinners biking to work. If you don't live close enough to work to bike, you really ought to consider moving, if you can. You'll also want to look up "peak oil", and maybe read Jeff Rubin's book "Why Your World Is About To Get A Whole Lot Smaller: Oil And The End Of Globalization." Of course, the folks driving the BMWs, Lexuses, etc. don't really care how high the price goes, do they?
johnnya2
Tue, Apr 5, 2011 : 5:49 p.m.
I would consider biking to work, but my territory covers the entire state of Michigan, Ohio, Illinois, Indiana, Kentucky and half of Pennsylvania. It's almost impossible for me to get to meetings in time when I bike. By the way, I do not mind paying extra for gas. I am all for $6 or $7 per gallon. When it is possible I take the bus around town, especially on nights when I will be using adult beverages. The only issue I really hate is the lack of bus service 24/7. This town is a college town. Students rarely live a 9-5 existence, and many people who rely on mass transit the most may be working non-traditional hours. There are also two large hospitals in the area that operate 24 hours a day. The AATA needs to fix this issue.
Wolf's Bane
Tue, Apr 5, 2011 : 5:44 p.m.
Well put, KJMCLark. We probably bike to work at the same time.
Ben Connor Barrie
Tue, Apr 5, 2011 : 4:23 p.m.
Gas is to inexpensive (IMHO). Relative to many other developed nations, we pay very little for gas. This lets us continue on a path that is not sustainable in the long run. It's unfortunate our economy and our lifestyles are built on cheap gas. Things have got to change. Higher gas prices are coming. High gas prices now can incentive us to make the changes we need to make.
Terminal
Tue, Apr 5, 2011 : 5:39 p.m.
I fail to see how Huron74's bizarre analogy relates. Slogan politics.
Huron74
Tue, Apr 5, 2011 : 4:50 p.m.
Just like walking on broken glass can give us incentives to buy shoes?
LiberalNIMBY
Tue, Apr 5, 2011 : 4:18 p.m.
I know it's not fashionable to provide context outside of the good ol' USA, but we pay less per gallon of gas than the entire rest of the developed world pays JUST IN TAXES on a gallon of gas. Small wonder why almost every other nation's per capita oil consumption is far below ours. As every mainstream geologist agrees, we're going to have to cope with less oil in the future, even with the piddly new drilling around the US (which will provide a miniscule amount of oil, relatively speaking). Sadly, this leaves the US in a much more vulnerable position than anyone else in the world. We are going to be forced to deal with future shortages quickly rather than gradually like our "socialist" brethren across the pond, who already have billions invested in efficient homes, small cars, alternative energy and transportation networks. The things that are possible when you have an educated public and a government that isn't bought and paid for by corporations!
Atticus F.
Tue, Apr 5, 2011 : 5:25 p.m.
All of the other developed countries make more per capita. You need to look at the equasion as the cost of gas in relation to minimum wage. Also, other countries don't have the vast rural areas that we do.
dading dont delete me bro
Tue, Apr 5, 2011 : 3:59 p.m.
i predict this will hurt the economy AGAIN. i believe the high $4/gal didn't help the first time. think about it, if i have to think about where my next tank of gas is coming from so i can get to work, do you think i'm going to go out and spend my $$'s at dinner, movies, home improvement...? economy will tank.
John B.
Thu, Apr 7, 2011 : 6:50 p.m.
20.5 mpg ain't bad. I drive a 300hp, 4000-pound car that averages 20 mpg, but I cut my total driving by about 75% several years ago, from maybe 24K miles per year to 6K or so, by eliminating my long commutes (which were driving me nuts anyways, not to mention burning up about ten hours per week, on average). Cut my vehicle expenses way down; glad I did it when gasoline was about a buck per gallon. When I do finally replace my twelve-year old car, though, I'll be looking for significantly better fuel consumption.
Turd Ferguson
Wed, Apr 6, 2011 : 2:16 a.m.
Yeah Dading, but it's one Bad ride. That Hemi's got 360 HP too. It'll pull a house down dude.
dading dont delete me bro
Wed, Apr 6, 2011 : 2:12 a.m.
johnny b, you have a good memory. why, yes i do drive that. i'm not complaining...not yet. i was just sayin' besides, dodge neon is too small for me and my family. got a shoe horn w/that? i do get 20.5 mpg w/mds
John B.
Tue, Apr 5, 2011 : 10:48 p.m.
If you choose to drive a Jeep with a Hemi V-8 in it, when a Dodge Neon would have been sufficient to get you around town, you've made your decision to pay the required additional fuel costs. You chose that. If that means you spend less elsewhere, again, that is your decision.
Tex Treeder
Tue, Apr 5, 2011 : 3:54 p.m.
I wish there were an AATA stop closer to my home. The nearest is just over a mile away and service doesn't quite start early enough for me to take the bus. Even a half hour earlier would make it an option.
Atticus F.
Tue, Apr 5, 2011 : 5:50 p.m.
Simply adjust your lifestyle so it mirrors the people who are cheering higher gas prices. After all, thats what they want, for everybody to live their lives exactly as they do.
johnnya2
Tue, Apr 5, 2011 : 3:52 p.m.
Every president since Nixon knew this was coming and has talked the game of oil independence. Reagan and his republican lock steppers believe consumption in american society is the answer as opposed to conservation (Jimmy Carter was mocked for suggesting putting on a sweater and lowering your thermostat). Nobody has seriously tried to make alternative energy work in the same way money has been thrown into exploration and TAX CREDITS FOR OIL COMPANIES. Even if prices take a temporary down turn, this same article will be written every 3-5 years. I guess newspapers can save on labor and printing cost and just recycle it again
Joe
Tue, Apr 5, 2011 : 3:51 p.m.
What do we have to complain about? This is what we chose when we built our national infrastructure with nothing other than automotive travel in mind. And why weren't we complaining earlier, when we were paying for cheap gas through decreased health and quality of life? I welcome a rise in gas prices as an encouragement to support alternatives to car-only transportation. In the long run gas prices will continue to rise. If you have no alternative to driving, either do your part to see alternatives implemented or stop complaining about gas prices.
Joe
Wed, Apr 6, 2011 : 1:32 p.m.
Huh?
Atticus F.
Tue, Apr 5, 2011 : 5:45 p.m.
Have you ever seen an environmental movement in a third world country?...If not, then why would you think turning this country into a third world nation is going to help the environment. I'm sure you'll be much happier when people are burning tires, or whatever else they can find to keep from freezing.
Atticus F.
Tue, Apr 5, 2011 : 5:23 p.m.
We've proven that we can have a good quality of life, and still own cars. There are other dynamics in place that are causing this.
Ignatz
Tue, Apr 5, 2011 : 3:35 p.m.
The reasons for the higher fuel prices outlined in the article are not so much factors as the fact that oil/fuel are being gambled with. The greedy are gambling that there will be a shortage, not that there really is. Energy is too important to play craps with. I won't be bamboozled by Big Oil and their bought politicians into believing there's a supply or refinery capacity shortage. It's pretty easy to predict there will be rise in prices and then control all the conditions to make it so. I'd be interested to see what contingency plans are being made, if any, by AATA to provide efficient transportation to those who will soon not be able to afford to get to work.
black canoe
Tue, Apr 5, 2011 : 3:24 p.m.
I ride a commuter bus, and can get around locally ok. However my mother lives 425 miles south and daughter is 500 miles east. There is no way to get to either place without driving. Makes for an extremely expensive visit to family. this makes me mad.
Huron74
Tue, Apr 5, 2011 : 3:22 p.m.
If I could buy a horse and keep it in the city I think that I would. Use a bicycle and motorcycle for everything else. Sell the truck and just rent or borrow one if I need to. Between financing payments, gasoline, upkeep, licenses, fees, and insurance private cars are going to again be a toy for the well-off only.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 2:58 p.m.
"We have an Administration and the Federal Reserve with active policies to create inflation, devalue the dollar and restrict the domestic drilling for new oil. Higher gasoline prices are the result. Surprise, surprise, surprise!" 1) There is almost no inflation in this country outside of energy and healthcare costs. To the degree that Federal Reserve policy is creating inflation, it would impact all areas, not just energy and health care. 2) A weaker dollar makes imports (e.g., oil) more expensive and US made good cheaper overseas, thereby discouraging imports, encouraging exports, and encouraging the growth of the domestic economy. One guesses that if the president were pursuing a strong dollar those who despise the president would complain about that, as well. 3) The oil industry has leases and approved drilling rights on vast expanses on the American coastline, leases and permits that are NOT being used. NEW permits were briefly stopped after the Gulf disaster. It is called "due diligence". New permits are now being issued. Moreover, it can take years to bring in an off-shore oil field. Gasoline prices today, then, have absolutely nothing to do with what the Obama administration's drilling policies have been. 4) The price of gasoline today is being driven by the price of oil. Current global demand for oil is still below pre-recession levels, yet price per barrel is at an all time high. Why? 1) Instability in the Middle East, and 2) Speculation on the oil markets as, it appears, the global recession is ending. These are the factors that are driving up the price of gas. Other than that, a typically fact-filled post, Top Cat! Good Night and Good Luck
Will Warner
Wed, Apr 6, 2011 : 10:15 p.m.
Touche, Ghost. Also, I'm glad to hear that communism is still viewed negatively.
Edward R Murrow's Ghost
Wed, Apr 6, 2011 : 2:02 p.m.
@outdoor: 1) Wrong about food and fuel not being in the CPI. Source: <a href="http://www.bls.gov/news.release/cpi.nr0.htm" rel='nofollow'>http://www.bls.gov/news.release/cpi.nr0.htm</a> Note that "All Items" is 2.1% and that "All items less food and energy" is 1.1%. The reports I heard was the 2.1% number. In any event, what the news media reports is THEIR choice though, when they report the latter, they should (and usually do) report that it is w/o food and energy. 2) The price of gasoline rose nearly 30 cents last week. If that were the rise for the entire MONTH, it would equate to an annual inflation rate of roughly 100%. No other sector of the economy has seen price rises that are close to that. So, again, the rise in fuel prices CANNOT be attributed to Fed policy or to a weak dollar as they would affect all sectors of the economy, not just energy. 3) A little inflation is a good thing. It is when it climbs above 5-6% that it becomes problematic. Check your macroeconomic textbook for details. @Will: Yup. Every once in a while a little snark sneaks out, especially in reply to those people who are habitually snarky themselves and, at the same time, display massive ignorance in their posts. If you want to be the civility police on A2.com, I suggest you start with the guy whose avatar is a hammer and sickle, whose name implies all Ann Arbor residents are communists and thereby complicit in the murder of tens of millions of people, and whose posts are at best rude and angry. I am, by comparison, a small player. Good Night and Good Luck
Will Warner
Wed, Apr 6, 2011 : 11:51 a.m.
A good post, Ghost, until this: "Other than that, a typically fact-filled post, Top Cat!" I believe I read a post of yours lamenting the absence of civil discourse...
outdoor6709
Wed, Apr 6, 2011 : 1:41 a.m.
You do realize the US gov has dropped fuel & food from its inflation calculations. Quantative easing is the monitizing of US debt by the fed reserve. The US $ has lost 10% of its value since last fall. Sounds like inflation is here, even if gov will not admit it.
joe.blow
Tue, Apr 5, 2011 : 9:26 p.m.
Inflation in the healthcare industry? You have no idea what your talking about! Inflation is paying more for the same product, the product of healthcare is improving (plus there are massive nursing unions jacking up their pay). Everyone wants the new 5 Tesla MRI, but complain when there bill is 5% more. That's not inflation.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 9:19 p.m.
Yes, I have. And I've also seen this: <a href="http://www.usinflationcalculator.com/inflation/current-inflation-rates/" rel='nofollow'>http://www.usinflationcalculator.com/inflation/current-inflation-rates/</a> Good Night and Good Luck
Top Cat
Tue, Apr 5, 2011 : 8:07 p.m.
Been to the supermarket lately ?
MjC
Tue, Apr 5, 2011 : 2:54 p.m.
We've been going back and forth on our dependence on oil for nearly 30 years now. We knew that gas prices would return to $4/gallon again, so none of this should come as a surprise. Let's just get back to the drawing board and come up with a plan to finallyend the U.S. dependence on oil and gasoline once and for all. It's time.
stunhsif
Wed, Apr 6, 2011 : 1:32 a.m.
Gasoline , even at 5 dollars a gallon is still too cheap to move this country quickly to "non dependance" on oil and gas. Do your homework and research please. Doing what you say would destroy the middle class because of the increased costs.
Bertha Venation
Tue, Apr 5, 2011 : 2:45 p.m.
Hmmm. Changes summer vacation plans somewhat. If you see me on the east bound PA turnpike in my solar powered Hoveround, please don't run me over. I'll try to stay in the right lane.
Nancy Shore
Tue, Apr 5, 2011 : 2:42 p.m.
Thanks for mentioning some of the strategies people can use to cut their gas use, Paula. And for those of you who work in downtown Ann Arbor, remember that the getDowntown Program is here to help you if you'd like to try a new way to get to work. We provide free commuting assistance, a go!pass that employers can purchase so their employees can have unlimited rides on the bus, bike lockers, great events and more. Go to <a href="http://getdowntown.org/" rel='nofollow'>http://getdowntown.org/</a> to learn more.
obviouscomment
Tue, Apr 5, 2011 : 8:25 p.m.
I don't consider the area I live to be a "rural area" but there is not bus transportation anywhere near the apartments where I live. I looked for other apartments on the bus route but the closer they were to downtown, the higher the rent. So I live in a less expensive apartment and I drive to work...so now I should have to pay for not being able to afford city living?
Atticus F.
Tue, Apr 5, 2011 : 8:12 p.m.
Edward, I've said it before I'll say it again; Comparing western europe to the US is an apples to orange comparrison for these reasons: 1) minimum wage is about $11.00 in those countries. 2) Europe doesn't have the vast rural areas we do. geographically, they are much smaller than us 3) if you're in europe and traval 1 hour in any direction, you are speaking another language. 4)Alot of their gas price represents taxes, which are put back into their economy. Once we make the minimum wage $11.00 in this country, maybe $7/gal gas wouldn't seem so unreasonable.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 7:11 p.m.
Western Europe (where the price of gas is near $7/gallon) knows no squalor like that of Detroit or of the rural south. This is not about squalor. And this is not about supply and demand. The US has huge excess supplies of gasoline right now. The recession has led to an excess of capacity. It is about the price of oil being driven up by speculators. And it will only get worse. Pursuing an environmental agenda? As if those who want to continue the current transportation/energy system aren't pursuing an environmental agenda? Environmentalists want people living in caves? You mean, the growing segment of the environmental community that, after the Japanese nuclear disaster, see that as a reason to support nuclear energy? THAT environmental movement? LOL Lots of red herrings. Few facts. Good Night and Good Luck
Atticus F.
Tue, Apr 5, 2011 : 6:56 p.m.
Also, who says the price of energy has to be expensive? The people who controll the output. It's as simple as supply and demand. Open up the supply, and you'll quickly see that driving to work is sustainable. Close the supply off, and you'll see that driving to work is unsustainable. So why would we feel the need to live a lifestyle of squaller, when the solution is as simple as increasing supply.
Atticus F.
Tue, Apr 5, 2011 : 6:49 p.m.
Through your view, living in rural areas is unsustainable, as is driving your kids to the doctor when they get sick, and driving to Florida on a family vacation. I feel like people who want us to stand at the bus stop in sub zero temperatures with IBS, or with sick kids, and tell us "this is how you need to live your life", are useing a narrow view. Or are pushing an environmental agenda. There are forces that are trying to drain our wealth by useing any excuse possible. And the environmentalist are as happy as can be, because they believe that by everyone living in a cave, its going to save the world.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 6:32 p.m.
Yes, people have always lived in rural areas. And until we built a national transportation system based upon automobiles, those people lived isolated lives. Cheap gasoline and the construction of 4-lane highways, interstate and otherwise, changed that. But the days of cheap gasoline are over. Indeed, they have gone on far longer in this country than elsewhere (in Canada right now the price of gas is about $5.00 per US gallon in US dollars). It's not about me (or anyone else) telling someone how to live their lives. It is about people paying the costs for the lives they live. If they want to pay less for their transportation, they need to live elsewhere. If, however, they value the rural life, that choice is now coming with an additional expense. Their choice. Not mine. Good Night and Good Luck
Atticus F.
Tue, Apr 5, 2011 : 6:08 p.m.
People have been living in rural areas for a long time. Why is it all of a sudden "time to make them pay"? Because of oil speculators? As stated earlier, we have proven that people can have a good quality of life, and still own cars. This is just another excuse to tell people they need to live their lives, as you live you life.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 6:04 p.m.
"Does she have any suggestions for people living in rural areas?...Or are they just on their own?" We have built a national economy, a national transportation system, and a national myth about home ownership that depend, among other things, on modes of transport that are incredibly inefficient in term of energy expenditure. The time has come to pay for those decisions. Good Night and Good Luck
Atticus F.
Tue, Apr 5, 2011 : 5:21 p.m.
Does she have any suggestions for people living in rural areas?...Or are they just on their own?
Top Cat
Tue, Apr 5, 2011 : 2:38 p.m.
We have an Administration and the Federal Reserve with active policies to create inflation, devalue the dollar and restrict the domestic drilling for new oil. Higher gasoline prices are the result. Surprise, surprise, surprise!
Hot Sam
Thu, Apr 7, 2011 : 12:53 p.m.
"""while still getting billions in subsidies and tax credits""" I thought someone was supposed to end that sort of thing...
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 9 p.m.
"'Facts' from the New York Times ? All the news that fits, we print." Translation: He has no facts to refute those he does not like. Good Night and Good Luck
Top Cat
Tue, Apr 5, 2011 : 8:10 p.m.
"Facts" from the New York Times ? All the news that fits, we print.
Moscow On The Huron
Tue, Apr 5, 2011 : 6:41 p.m.
Never let an opportunity to regurgitate tired left strategies of personal attacks because you've lost the argument of actual issues pass you by.
Terminal
Tue, Apr 5, 2011 : 5:44 p.m.
Never let an opportunity to regurgitate Bachmann Palin Overdrive's crazy talk and falsehoods pass you by.
Edward R Murrow's Ghost
Tue, Apr 5, 2011 : 3:17 p.m.
@Epengar: LOL!!! We wouldn't want to let actual FACTS educate our opinions!! Good Night and Good Luck
Epengar
Tue, Apr 5, 2011 : 3:06 p.m.
Government policy has less to do with drilling than you seem to think. Oil and gas companies drilled on fewer of their permits this year than have anytime in the past ten years. <a href="http://www.nytimes.com/gwire/2011/01/13/13greenwire-two-thirds-of-federal-oil-and-gas-drilling-per-13123.html" rel='nofollow'>http://www.nytimes.com/gwire/2011/01/13/13greenwire-two-thirds-of-federal-oil-and-gas-drilling-per-13123.html</a> Meanwhile the oil companies are earning larger profits than they have in years: <a href="http://www.nytimes.com/2011/02/01/business/01oil.html" rel='nofollow'>http://www.nytimes.com/2011/02/01/business/01oil.html</a> while still getting billions in subsidies and tax credits <a href="http://www.nytimes.com/2011/02/01/science/earth/01subsidy.html" rel='nofollow'>http://www.nytimes.com/2011/02/01/science/earth/01subsidy.html</a>