GAS PRICE INCREASE COMING

Gas Price Increase Coming

Gas Price Increase Coming

I just read an interesting article in the Press-Enterprise. It was interesting for 2 reasons.  

 

The first was because it talked about the gas price increase coming January 1. I knew the low gas prices were too good to last and that the good ‘ole California government would see to it that they added some tax or other to enrich the state coffers and decrease the money in my pocket.  Whether we can blame the increase on this directly or not, an increase is definitely coming now.

The 2nd reason the article was interesting was that it had some good tips on how to offset the price increase (which incidentally they are saying will be about a dime a gallon.) Naturally this involves driving to better your gas mileage.  I am all about saving money, though.

 

So, here are the tips provided in the Press Enterprise article.

 

TIPS ON HOW TO OFFSET THE GAS PRICE INCREASE:

1. Drive 70 MPH rather than 72 MPH on the freeway. I of course already knew slowing down would give me better gas mileage.  And I know this small speed decrease will not greatly impact how quickly I get to my destination. I can easily implement this guideline. Will I? Not sure I can overcome the “speed demon” that overtakes my brain when driving the freeway. We’ll see.

 

2. Buy a car that gets 31 MPG rather than 30 MPG. That will get you more than a 3% savings in and fuel cost, just increasing gas mileage this little bit,  the article says, which more than offsets the fuel cost increase. Since my car is paid for, and it feels pretty good not having a car payment right now, I don’t think I am going to rush out and buy a new car though. However, if I were in the market, I would keep this tip in mind.  Seems a small price to pay for increased cost saving over the life of owning my car.

 

3. Keep tires properly inflated. I knew this one. Not only does this help you get better fuel mileage but it also makes the tires last longer and generally makes the car ride feel better going down the road.  So, here's an easy maintenance tip I can implement.

 

I guess when you look at the impact of the price increase in terms of ways to offset it, my anger seems kind of silly. Was the purpose of the article to make me feel that way? Not sure. California drivers now pay 68.87 cents in combined state and federal taxes per gallon of gas. This is second in the nation only to New York, where per gallon the combined taxes are 68.65 cents, according to the American Petroleum Institute. I think the real reason this article bothered me is that I feel like the consumer always gets stuck in the end, or should I say in the pocket, even when prices go down.

 

Incidentally, to read the full newspaper article, you’ll find it on Page 1 of the Business Section in the Press Enterprise Sunday December 28th edition. It is written by staff writer Richard K. De Atley and uses as a source Severin Borenstein, a professor of business administration and public policy at UC Berkeley.

 

Let me know your thoughts.

Tags: gas price increase coming, Cost Saving Tips, Better Mileage

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