Inflation?

[petegoud]

The price of diesel here in Washington state is currently about $3.85 a gallon. There's a lot of complaining going on concerning these prices and everyone is pointing the finger at everyone else to explain these costs. It got me to think a little about inflation. I compared these costs to what we were paying in 1980. I used my property taxes as something to judge against. Here goes, in 1980 I paid $880 in property taxes. In 2008 the same piece of property was being taxed at $5252. A fairly hefty tax increase from my friendly government. If I applied the same increases to gasoline sold in 1980 I would now be paying about $7.50 a gallon. If my property taxes went up at the same rate gasoline has gone up, I would have an additional $2,172 to spend for fuel each year. Perhaps some of our anger should be directed to other things. Any thoughts? Doug

 

[CDsdad]

You have a very valid point.

In 1999 (for a while), oil was $10/bbl, and gas was $.85/gal. If you take inflation into account, crude oil and gasoline at this time were CHEAPER than they had EVER been. It's caught up to us and then some.

 

[Bird]

You have a very valid point.

In 1999 (for a while), oil was $10/bbl, and gas was $.85/gal. If you take inflation into account, crude oil and gasoline at this time were CHEAPER than they had EVER been. It's caught up to us and then some.

I looked back at one of my old records and found that, on 2/28/99, I filled up with gas at $.829 a gallon.

 

[pennwalk]

Diesel went through $4 here this week. I'm thinking I'm glad I didn't get a bigger tractor. My little Yanmar 186D will mow all day on a tank of diesel. Sometimes I wish it could take a bigger bite. I've got wood and water. Has anyone thought about a compact steam tractor?

Chris

 

[Z-Michigan]

I also think you make a valid point. And as I've said several times, a lot of the price increase in oil and the fuels made from it is based on the falling dollar.

Diesel is $4.00-4.20 a gallon around here. Our diesel pickup now costs more to run than my Suburban, even though it gets somewhat better mpg.

Without re-hashing other debates, while some of the price is due to a falling dollar, some is also due to speculation. I expect the speculative bubble to pop in the next year and prices to crash. But when I don't know, and prices may go insanely high first.

Bird, 1999 has a historically low year for oil prices, possibly the lowest ever. If only we all could have stocked up back then!

 

[IH3444]

We did. Stratigic reserves were filled, as well as oil wells which had been pumped down.

 

[DmansPadge]

I'm just wondering how long it'll take for this thread to be closed!

 

[PCABE5]

$3.89/gal here which makes my Jeep cheaper to operate. Z-Michigan, is right because oil is traded in the market is based off the US dollar so your point is right on with the value of the dollar dropping causing higher prices.

To really get fuel prices to come down on diesel we need to find a way to significantly cut the 35+billion gallons of diesel the trucking industry uses. They are the largest consumer in the US and the industry is growing creating more demand. I guess our days of cheap transportation are over.

 

[mjarrels]

Rail Roads are starting to look better every day... Just heard that a Boing 747 gets 750 feet per gallon!

mark

 

[sandman2234]

I hear ads from the railroads stating the fuel savings available by using rail, and that they move X number of tons per gallon of fuel used. I just think about the tare weight involved and wonder if they are subtracting that or if that is just another way to get people to try something different.
When moving 80K down the road, diesel is about the only way to go, as gas just doesn't get it. Perfecting the trucking industry and how it is governed by local/state laws would add some fuel economy. If trucks could be allowed to run unhindered by the changes in traffic patterns (read left lane restrictions) I think it might be a way to save some fuel expenses. But then again, I may be wrong, as I never have understood why anyone would want an bunch of 80K rigs in the same lanes as traffic merges. The town I live in is one of the few places on I-95 that allows trucks in the left lane, and it sure makes it nice to get over there and stay at a constant speed, cause none of the 4wheelers seem to want to use that inside left lane.
Rant off.
David from jax