vengeful Posted August 16, 2006 Share Posted August 16, 2006 Relief at last?? Red Herring? Bluff? You decide. Americans should enjoy falling gasoline prices for the next several weeks as they wrap up their summer vacations, the government’s top energy forecasting agency said Wednesday.... Pump prices finally should dip below year-ago levels by the Labor Day holiday in early September, the Energy Department’s analytical arm said. “While this may provide scant comfort to U.S. drivers still paying around $3 per gallon for gasoline, it’s a relief to some who feared prices might have gone even higher this summer,” EIA said in its weekly review of the petroleum market. Link to full article. All I know is that this could be good. Gas needs to drop to about $.50-1.00 below year-ago levels, but this is a start. Link to comment Share on other sites More sharing options...
The Drift Posted August 16, 2006 Share Posted August 16, 2006 I say crap Link to comment Share on other sites More sharing options...
iLLlegal Posted August 16, 2006 Share Posted August 16, 2006 would this follow suit for canada? Link to comment Share on other sites More sharing options...
vengeful Posted August 16, 2006 Author Share Posted August 16, 2006 would this follow suit for canada? Of course not...why should it? Yes, more likely than not, if this plays out, Canada will also see a decrease in fuel costs. Maybe not as rapid, or extreme as the U.S., but a decrease nonetheless. Link to comment Share on other sites More sharing options...
iLLlegal Posted August 16, 2006 Share Posted August 16, 2006 as long as its under a dollar a liter . one thing i hate is paying more money then I get in gas. Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 Oil prices slide further as stockpiles rise Let's keep this trend! Drop them prices! Weee lil doggy! Link to comment Share on other sites More sharing options...
Slick Posted August 17, 2006 Share Posted August 17, 2006 well, the crap is still over $3 a gallon here Link to comment Share on other sites More sharing options...
Harbinger Posted August 17, 2006 Share Posted August 17, 2006 Personally I will be shocked as hsit if prices actually drop. Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 I saw $2.79 at the Arco this morning. Apparently it's as low as $2.65 around the valley. Link to comment Share on other sites More sharing options...
Harbinger Posted August 17, 2006 Share Posted August 17, 2006 According to www.boisegasprices.com our current low for 87 octane is 2.91 and the high is still 3.02 Link to comment Share on other sites More sharing options...
The Drift Posted August 17, 2006 Share Posted August 17, 2006 If gas drops under $3.00 here ever again I will fling my own poop in joy and elation. Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 Actually, in order for me to do that, it needs to drop back down to about $2.00/gallon, but that will never happen--not with the way inflation has been the past 2 years. Now, here's a little bit of cost analysis for you... Accounting for inflation (but not other increases (cost of living) (or decreases (relatively, pay rate), as they may be), gas COSTS less per gallon today than it did in 1980. However, the total COST of a tank of gas has a much greater impact today than it did in 1980 because the pay rates have not increased in respect to the increases in living costs, (and many Americans are still seeing prices in 1986 dollars) which is why more and more Americans are filing Bankruptcy every year, and more and more Americans are falling deeper and deeper in debt every month. If you were to do the math, you would conclude that Americans are able to save less money in 2006, than they were in 1986, simply because the pay-rates have not kept up with the increased cost of living. Yes, there are more 6-figure jobs today, yes, that seems like a lot of money, yes, $8,000/month sounds like you can really do a lot with it. Ok, let's break it down. Combined household income of $10,000/month (before taxes), DC Area, living in a median value home ($650,000) on a 30-year mortgage at 4.35% fixed. (This is what my Dad's situation is right now.) Of that money, here's where it all goes... $3,000 - Taxes $3,650 - Mortgage $500 - Car Payment $500 - Household Bills (Phone, Cable, Internet, Utilities, Water, etc...) $760 - Health Insurace (self employed) $1000 - Living Expenses (Food, Gas, Entertainment, Dating, Etc...) And you end up about $590 ahead at the end of the month for emergencies...doesn't leave much of a comfort zone, does it? Now, the same job in 1986, he earned $6,000/month - The house was $210,000...let's break this down... $1,200 - Taxes $1,340 - Mortgage $140 - Car Payment $200 - Household Bills (Utilities, Phone (no internet or Digital cable with all the premium and HD channels back then), etc)... $250 - Health Insurance (Back then it was partially covered by his work) $600 - Living Expenses You end up with over $2500 at the end of the month. Much more comfortable situation. Link to comment Share on other sites More sharing options...
The Drift Posted August 17, 2006 Share Posted August 17, 2006 Cliff notes on Venge's post This world is crap. Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 Uh, not quite there yet.... Here's the Spark Notes. The current worldwide economy is struggling to keep up with inflation demands. Pay-rates have not kept up with cost-of-living increases over the last 5-10 years, and people are feeling it in their pockets. More and more people are declaring bankruptcy because of this. That is the primary reason that $3 gas is such a major deal in the U.S., because people were already spread thin enough with $2 gas. [EndSparkNotes] The crazy housing market has a lot to do with it too. More and more people are moving farther and farther away from major cities to take advantage of less expensive housing, but they've got to commute 2+ hours each way, every day. Do the math. Is that 100-mile commute REALLY worth it to save $80,000 on your house? That's 5 hours EVERY DAY, you spend commuting. That's 1,000 miles a WEEK, just in commuting. That's 3 full tanks of gas. And that's without even going anywhere but work. 1,200 hours a year commuting, 144 TANKS of gas (at $50-60 each, that adds up!)....are you really saving that much money? Wouldn't those 5-hours a day be better spent with your daughter/son/wife? Not to mention, at 1,000 miles + per week, you're doing at least 50,000 miles per year. Maintenance costs, depreciation costs on your vehicle, tires, etc will all add up, as well. And let's not forget that the average American doesn't keep a vehicle more than 100,000 miles, you're buying a new car every 2 years. Oh, what's that? You signed a 60-month loan on your last car because you couldn't afford the payments on the 24-month loan? Oh, you're screwed now Jack! So you move your family 100-miles away from the city to get an extra 1,000 sq feet in your house, and you save yourself $80-100,000 over what the same house would have cost you in your old neighborhood. In added living costs, mostly vehicular and lost time (let's say you value your time at $20/hr, you're "spending" $24,000 a year (assuming you work 48 weeks) commuting in lost time). Assuming a tank of gas costs you $50, and you fill up 3 times a week, you're spending $7200 a year on gas, just for your commute. You're already at $31,200 in lost money...in just your first year. Let's not forget oil changes every 3 weeks ($560), new tires every year ($600), other maintenance/repair costs ($1000), lost wages because of your broken down car....and it just doesn't quite make sense in the long run. Sure that extra $80,000 seems like it'll help a LOT, especially with Junior going off to college in 3 years. But the truth is...you wont have a penny of the $80,000 you saved by moving out to the sticks after less than 3 years. Ok...enough of my rant...time for lunch! Link to comment Share on other sites More sharing options...
Casey.T Posted August 17, 2006 Share Posted August 17, 2006 Does that $3650 Payment include Property Taxes and Home owners Insurance? Cause the math is working out for a 700k+ mortgage..... $3000 monthly IRS taxes? I would be looking for more deductables Business expences.(Turbo Tax is your friend) Deduct everything you can, and argue it later with the IRS if needed..... $760 Health ins OUCH... Mine $1100 Mtg Payment (210 was a steal) No Car Payments $700 house hold exp/Auto Insurance $440 medical/dent/vis(covers 5 of us) $1200 Food and Fun budget Anthing above this 50% goes into a Index fund and the other goes for special fun, emergency items... Link to comment Share on other sites More sharing options...
The Drift Posted August 17, 2006 Share Posted August 17, 2006 Uh, not quite there yet.... Here's the Spark Notes. The current worldwide economy is struggling to keep up with inflation demands. Pay-rates have not kept up with cost-of-living increases over the last 5-10 years, and people are feeling it in their pockets. More and more people are declaring bankruptcy because of this. That is the primary reason that $3 gas is such a major deal in the U.S., because people were already spread thin enough with $2 gas. [EndSparkNotes] The crazy housing market has a lot to do with it too. More and more people are moving farther and farther away from major cities to take advantage of less expensive housing, but they've got to commute 2+ hours each way, every day. Do the math. Is that 100-mile commute REALLY worth it to save $80,000 on your house? That's 5 hours EVERY DAY, you spend commuting. That's 1,000 miles a WEEK, just in commuting. That's 3 full tanks of gas. And that's without even going anywhere but work. 1,200 hours a year commuting, 144 TANKS of gas (at $50-60 each, that adds up!)....are you really saving that much money? Wouldn't those 5-hours a day be better spent with your daughter/son/wife? Not to mention, at 1,000 miles + per week, you're doing at least 50,000 miles per year. Maintenance costs, depreciation costs on your vehicle, tires, etc will all add up, as well. And let's not forget that the average American doesn't keep a vehicle more than 100,000 miles, you're buying a new car every 2 years. Oh, what's that? You signed a 60-month loan on your last car because you couldn't afford the payments on the 24-month loan? Oh, you're screwed now Jack! So you move your family 100-miles away from the city to get an extra 1,000 sq feet in your house, and you save yourself $80-100,000 over what the same house would have cost you in your old neighborhood. In added living costs, mostly vehicular and lost time (let's say you value your time at $20/hr, you're "spending" $24,000 a year (assuming you work 48 weeks) commuting in lost time). Assuming a tank of gas costs you $50, and you fill up 3 times a week, you're spending $7200 a year on gas, just for your commute. You're already at $31,200 in lost money...in just your first year. Let's not forget oil changes every 3 weeks ($560), new tires every year ($600), other maintenance/repair costs ($1000), lost wages because of your broken down car....and it just doesn't quite make sense in the long run. Sure that extra $80,000 seems like it'll help a LOT, especially with Junior going off to college in 3 years. But the truth is...you wont have a penny of the $80,000 you saved by moving out to the sticks after less than 3 years. Ok...enough of my rant...time for lunch! Link to comment Share on other sites More sharing options...
SaKaNa Posted August 17, 2006 Share Posted August 17, 2006 $2.80 this morning in NJ... We rule. Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 Does that $3650 Payment include Property Taxes and Home owners Insurance? Yes... $3000 monthly IRS taxes? I would be looking for more deductables Business expences.(Turbo Tax is your friend) Deduct everything you can, and argue it later with the IRS if needed..... That includes the State, Federal, FICA, and everything. Automatic deductions. Link to comment Share on other sites More sharing options...
Casey.T Posted August 17, 2006 Share Posted August 17, 2006 ???? Automatic deductions??? You said he is Self-Employed??? or im having a bald moment.... Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 A little bit of both.... He has his own business, but has a payroll company do the payroll for him, so it automatically deducts all the taxes and stuff from his paycheck, so he doesn't end up with a $30,000 bill at the end of the year. Link to comment Share on other sites More sharing options...
Extreme90path Posted August 17, 2006 Share Posted August 17, 2006 nice, yeah business owners get nice tax breaks somtimes... but yeah... 3.15 at cheveron, and 3.09 at safeway. Link to comment Share on other sites More sharing options...
vengeful Posted August 17, 2006 Author Share Posted August 17, 2006 The "more expensive" Arco is at $2.81 for regular, $2.87 for Mid-grade, and $2.97 for Premium. Diesel is $3.19 though. Link to comment Share on other sites More sharing options...
congochris Posted August 18, 2006 Share Posted August 18, 2006 Ialways love the excuses we get here in CO for gas price raises.. in the winter, it's the additives to keep it from freezing, or to burn right at this altitude or s0mesuch BS, and in the summer, it's to keep the gas form evaporating, and higher transportation costs.. so every season, we get a change. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now