Gasoline Price at Inflation Adjusted Peak
May 22nd, 2007Via: Reuters:
U.S. retail gasoline prices hit a record high for the second week in a row and matched the inflation-adjusted peak reached in the early 1980s during the Iran-Iraq war, the government said on Monday, as concern about low motor fuel supplies pushed up pump costs.
The average price for regular unleaded gasoline soared 11.5 cents over the last week to a fresh record of $3.22 a gallon, according to the federal Energy Information Administration’s nationwide survey of 800 service stations.
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Could this be the start of peak oil madness? global demand finally ending cheap oil? Time will tell but I will dance a jig on the grave of petroilum zombie death society when it falls. Love the site by the way.
3, 4 bucks doesn’t impress me. In Europe I paid 6 bucks, so.. until the US exceeds 6-7 bucks a gallon, I won’t be impressed. But when it does, I’ll be the first one to say that the Peak Oil doodoo has hit the fan!
Americans drive significantly more miles per week, per capita, on average than Europeans. The country is almost as large as all of Europe put together (LA to NY is further than London to Moscow), and everything essential to modern life more spread out (something Kunstler often covers well). Thus, it is not an issue of price per gallon, but total cost per paycheck.
Also, most of the extra cost in Europe comes from government mandated taxes, not actual fuel cost. Thus, when it’s $6-7 in the US, it’ll be $10 there.