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Page added on October 31, 2014
The average price of gas in the U.S. has hit $3 a gallon
The average price of gasoline in the U.S. hit $3 a gallon Friday, and should soon drop below the benchmark for the first time since December 2010.
The price at the pump fell 33 cents in October, thanks mainly to plunging oil prices, according to AAA.
Many exuberant drivers have taken to social media to post pictures of gas station signs with prices of $2.99 or lower. Drivers in South Carolina and Tennessee are paying the lowest prices, with an average of $2.75 a gallon.
Drivers in New York are paying the most in the continental U.S., at an average of $3.37. That’s still 22 cents cheaper than a year ago.
Gasoline is cheaper than milk again. In September the national average price of milk was $3.73 per gallon.
22 Comments on "The average price of gas in the U.S. has hit $3 a gallon"
penury on Fri, 31st Oct 2014 2:51 pm
There is an election on Tuesday. I do not care what the “price” of gas is this week, I will be more impressed if it is below 3.00 dollars in mid-december.
shortonoil on Fri, 31st Oct 2014 3:15 pm
The good news is that it is going down a lot more. The bad news is that it is going down so far that the producers will go out of business. Its called the end of the oil age, and the MSM will spin it all the way into the abyss.
marmico on Fri, 31st Oct 2014 3:35 pm
Isn’t the oil age great?
Way back in the time machine when Ronald Reagan was elected POTUS in 1980, households spent 6% of their budget on gasoline and travelled 12 miles per gallon in their Chevy.
Fast forward to 2015. Households now spend 3% of their budget on gasoline and travelled 24 miles per gallon in their Chevy.
Isn’t the oil age great?
JuanP on Fri, 31st Oct 2014 3:40 pm
I intend to take advantage of low oil prices and take a long road trip with my wife for the first time in around ten years.
Davy on Fri, 31st Oct 2014 3:42 pm
You bring up a great point Short and it makes me wonder about the MSM spin going into the spiral down. How are these idiots going to spin all these predicaments and problems as positive with optimism and a smile on their face? Will it eventually get to be like Baghdad Bob?:
WHY WE LOVE M.S.S.
“In an age of spin, al-Sahaf offers feeling and authenticity. His message is consistent — unshakeable, in fact, no matter the evidence — but he commands daily attention by his on-the-spot, invective-rich variations on the theme. His lunatic counterfactual art is more appealing than the banal awfulness of the Reliable Sources. He is a Method actor in a production that will close in a couple of days. He stands superior to truth.”
— Jean-Pierre McGarrigle
http://www.welovetheiraqiinformationminister.com/
Davy on Fri, 31st Oct 2014 3:51 pm
Marm, welcome back friend.
Marm we talked about the issues with fuel cost as a percentage of household budgets. What about the bottom feeding folks that make up 50% or more of the households. Those households that are in or near the poverty line. You are telling me Marm gas makes up 3% percent of their budget????? You must be having a Mitt Romney moment.
http://www.salon.com/2013/05/30/half_of_americans_living_below_or_near_poverty_line_partner/
Northwest Resident on Fri, 31st Oct 2014 3:53 pm
Davy — It’s already “Baghdad Bob Light”. And while I can guess what shortonoil’s answer might be, my own impression is that yes, we’ll be hearing a lot more from the American version of Baghdad Bob — ever louder, ever more hysterical, denying reality all the way to the bitter end.
marmico on Fri, 31st Oct 2014 4:34 pm
Now Davy-boy, I’m a douche bag who is frightened of the IRS. You are a bottom feeding militia man polishing armaments in the doomstead who will lay down his life for liberty.
You must belong to the Romney 47% tribe, not me.
Twice the mileage at half the budget. Can we keep it going for another 35 years?
Apneaman on Fri, 31st Oct 2014 4:42 pm
Now anyone with any room left on the credit card can confidently use it up for the holidays. I think this will be the last Christmas as most people know it.
About that Shale Oil ‘Miracle’…
Unpacking the propaganda
by Chris Martenson
http://www.peakprosperity.com/blog/88437/about-shale-oil-miracle%E2%80%A6?utm_content=buffer4a349&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
Northwest Resident on Fri, 31st Oct 2014 4:59 pm
Apneaman — Great link to that peakprosperity article. Thanks for that.
I agree. 2014 is “The Last Good Year”, as the title goes over at AutomaticEarth. The Shale Oil Miracle has been exposed for the total fraud and Ponzi scheme that it was, and is. QE failed to create demand, all it did was super-inflate asset (stock) prices and suck wealth out of the 99%. There doesn’t appear to be very many “tricks” left in the bag to keep BAU going. The machine is grinding to a halt, and it is going to be a sad sight to witness, not to mention a brutal experience to endure for most people. Enjoy your holiday’s over the next couple of months guys. There never was any guarantee of a tomorrow, but for a long time there was a high probability. Not so much going forward, and less and less with each passing day. IMO.
Plantagenet on Fri, 31st Oct 2014 5:27 pm
The Saudis will keep gasoline prices low just long enough to kill off demand for electric cars and derail the electric car industry.
It worked for them last time—oil dropped and hit $20/bbl in 1999—leading to the end of the GM EV-1 electric car —- it was cancelled in 1999.
Davy on Fri, 31st Oct 2014 6:31 pm
Marm, nice, I like the thought of having a “doomstead”. As a matter of fact I just purchased a bad ass Leupold scope for my Panther 308. Not that into guns but every Doomstead needs one.
On the subject of gas I had a vision today that the roads were deserted except for an occasional truck and car. I began to wonder where will we get gas when the roads become truly lonely.
PrestonSturges on Fri, 31st Oct 2014 7:04 pm
Adjusted for inflation, this is probably about what gas cost BEFORE the first OPEC oil embargo.
Happy motoring!
redpill on Fri, 31st Oct 2014 7:19 pm
Davy, if you find yourself with 13 grand to toss away, here’s your upgrade for that Leupold:
http://tracking-point.com/precision-guided-firearms/precision-guided-308-bolt-action
Makati1 on Fri, 31st Oct 2014 8:38 pm
marmico, references please? You make assertions with no logical reasoning. The numbers sound nice but do not jive even close to my 54 year driving experience. References?
Makati1 on Fri, 31st Oct 2014 8:44 pm
BTW: US gasoline prices in 1980 were about $1.25/gal or equal to about $3.61/gal today. It’s all a numbers game.
http://www.answers.com/Q/Average_price_of_gas_1980
http://www.usinflationcalculator.com/
But then, the average income has dropped in those 34 years so the cost is actually higher now.
Davy on Fri, 31st Oct 2014 9:28 pm
Red, thats a BMF scope for sure!
marmico on Sat, 1st Nov 2014 2:54 am
Personal consumption expenditures: Nondurable goods: Gasoline and other energy goods/personal consumption expenditures.
Da interactive chart. 3.37% gasoline spending to total spending in Q32014.
Twice the distance for a 2015 new vehicle on half the consumer gasoline budget since 1980. Isn’t the oil age great?
Put another way, the decline in the pump price from $3.60 to $3.00 is a reduction of the consumer’s gasoline budget of ~$80 billion annually or ~$650 annually for the 122 million U.S. households.
Davy on Sat, 1st Nov 2014 8:15 am
Marm, you are correct with the budget savings for those 80% making under $100K. What is more important much of this savings will be spent by that bracket. This savings will actually strengthen your argument.
The 3.37% that is the gas portion of the disposable income appears deceptive because if you take out the 20% that make up 50% of the income this figure rises considerably. The savings gets magnified per the lower brackets giving the economy a good income boost for the lower brackets.
This savings will matter if the equity markets hold and that is a big if. If we have a stock market correction we will surely have more unemployment and lower income for the lower brackets.
Kenz300 on Sat, 1st Nov 2014 11:52 am
Demand from China and India and their billion plus populations is still growing. Yes it is growing slower than in years past but it is growing.
Enjoy the drop in oil prices while it lasts. Don’t let the short term cloud the long term view.
The temporary drop in oil prices will help the global economy recover and then that recovery will increase demand and higher oil prices will follow.
Makati1 on Sat, 1st Nov 2014 9:19 pm
With the US being the largest consumer of oil, mostly for transportation, the 200+ million cars on US roads are a big indicator of the economy in the US. With use decreasing every year and fewer people getting driver’s licenses or a car, the demand for oil will continue to drop. Higher prices will only speed the decline until it hits a point where it just collapses the system. Game over!
“According to the Bureau of Transportation Statistics for 2009, there are 254,212,610 registered passenger vehicles. Of these, 193,979,654 were classified as “Light duty vehicle, short wheel base”, while another 40,488,025 were listed as “Light duty vehicle, long wheel base.” Yet another 8,356,097 were classified as vehicles with 2 axles and 6 tires and 2,617,118 were classified as “Truck, combination.” There were approximately 7,929,724 motorcycles in the US in 2009.” (Wiki)
I wonder what the statistic is now, five years later?
Kenz300 on Sun, 2nd Nov 2014 8:05 am
Energy use in the US and Europe has slowed but in China and India it is still growing. Yes China’s growth rate is not what it was in the past (10%) but it is still growing at 7%. Oil demand growth in China and India will offset any decline in oil use in the US and Europe.
Increased fuel efficiency standards in the US has had an impact on transportation fuel use. Moving from a vehicle that gets 12 mpg to one that gets 40 mpg makes a huge difference. The transportation vehicle turnover is slow but this transition to higher mileage, more fuel efficient vehicles will continue.
Ten percent of gasoline sold in the US now contains ethanol and biodiesel use is growing.
Add to higher fuel efficiency standards the electric, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles added to the market and it is easy to see that the oil monopoly on transportation fuels is being broken. The fossil fuel industry hates that and will do all they can to stop it.
—————————
Kochs Attack: The Climate • BRAVE NEW FILMS – YouTube
https://www.youtube.com/watch?v=O0v1DTp0a10&index=1&list=PLQ9B-p5Q-YOPOJ9sIfgJ5_XRHFz7IatXL&t=3s
———————–
More young people are looking to walking, bicycling or taking mass transit to get to work or school. Many cities are now introducing bicycle rental programs to reduce auto congestion and pollution.
Yes, the use of oil for transportation is in transition.
That is a good thing for the planet. Climate Change is real….
———————
Streetfacts #1 – Bicycling Not Just for Big Cities – YouTube
https://www.youtube.com/watch?v=8AP25ShR2NQ