I’ll preface this by saying that I am not a commuter. I work from home. My Jeep Grand Cherokee is in the drive way most of the time. But I live up in the mountains where snowfall is great and dependable four wheel drive is absolutely necessary. When I do have to travel a distance it is usually to my farm, Carley Brook Farm, which is also located in the mountains – about an hour away – and the roads can be a real challenge in the winter.
The other day I go down the mountain and into town on a few errands and stop to fill the tank. Earlier that morning oil had surpassed $74 per barrel. The price at the pump had already reflected the morning news by jumping a few cents up from the previous day.
By that night the news was that prices had topped $75 per barrel. About an hour later im passing the by the gas station and looked at the price. They had a guy on a ladder changing the price – jacking it up a few cents – no doubt taking advantage in response to the news. The new price posted sent it up a more than a few cents. I checked around town and the other stations were following suit.
How quickly they act when when the price of a barrel goes up. This morning the news announced that the price per barrel came back down below $74 per barrel. — Has the gas station dropped it price to reflect this change? absolutely not. They trip over themselves to raise it based on the price per barrel but when it comes to lowering it to reflect the cost coming down they take the attitude of – yeah we will get around to it. Afterall — its more bucks for them.
Before your morning commute or trip to where ever – do yourself a favor and go to gasbuddy.com and take a look at the price of gas along your route. It is well worth your time. The site is updated minute by minute by road warriors reporting gas prices as they pass them. You will see what the corner gas station price is as well as the station across the country.
The price of gas will not only impact your filling your tank but most of the products you use. Not just groceries, as a result of higher cost of transporting them, but petroleum based products too — plastics, asphalt, tires, and a host of other products.
As the seasonal roadwork begins around the country, consider the miles of asphalt being laid. That asphalt cost a hell of a lot more today than it did yesterday. The state, the county, and the town that you live in will need to recapture that cost increase and as a result will most likely significantly raise your taxes to cover it – and then some.
Here is a fine diagram I found on the web that breaks down a barrel of oil into the products a barrel produces. Perhaps this will provide a better understanding of what will be impacted.
