Posted on 02/21/2013 5:47:47 PM PST by Lorianne
Gasoline expenditures in 2012 for the average U.S. household reached $2,912, or just under 4% of income before taxes, according to EIA estimates. This was the highest estimated percentage of household income spent on gasoline in nearly three decades, with the exception of 2008, when the average household spent a similar amount. Although overall gasoline consumption has decreased in recent years, a rise in average gasoline prices has led to higher overall household gasoline expenditures. However, these expenditures as a percentage of overall household income are still low when compared to the early 1980s, when the estimated portion of household income spent on gasoline surpassed 5%. Although travel per household has increased significantly since the early 1980s, vehicle efficiency has also risen significantly, reducing the amount of gasoline used per mile.
Efficiency gains have accelerated in recent years, such that total U.S. gasoline consumption fell in 2011 to 134.2 billion gallons, its lowest level since 2001. However, at the same time, Bureau of Labor Statistics's average city retail gasoline price rose 26.1% in 2011, and another 3.3% in 2012, when it reached $3.70 per gallon. The effect of the higher prices in 2011 and 2012 outweighed the effect of reduced consumption. As a result, expenditures increased to a record annual average of $2,655 per household in 2011, rising to an estimated $2,912 in 2012. The 26.1% yearly increase in 2011 was six times greater than the 3.4% rise in nominal household income. Additionally, the 3.3% estimated gasoline price rise in 2012 outpaced the 2.9% estimated increase in income.
So...consumption has FALLEN and the price has RISEN? I know I’m no economic genius like, say, Paul Krugman *SNORT*, but that don’t seem quite right!
Is there ANY part of our economy that isn’t broken or manipulated?
Had my first $50 fill-up in my truck this past week. According to my budget, with the increase I now have to absorb, that’s close to $100 I WON’T be putting back into the economy of my little Cow Town. Multiply that by the other 3K souls that live here and that’s gonna leave a mark!
And revisiting the chart above - I remember 1975-1979 when there WASN’T any gasoline, LOL!
I’m sick of these reports stating a percentage of income before taxes. It’s income after taxes that count. Federal, state and local entities take various bites here and there, and your real useable income is effectively halved. Those percentages of your income for gas are probably double what they’re stating, and that hurts twice as much. You can’t buy stuff at sticker price because of added taxes and fees. Real income, and real costs, are all hidden from us in a huge con game. Sck of the lies.
5.56mm
In the Era of Baraq, high fuel prices are GOOD.
Reduces the carbon footprint of evil resource hogging Americans.
In the Era of Baraq, high fuel prices are GOOD.
Understood, but when Bush was president that was all that was in the news.
5.56mm
I totally understand.
Just like in 2008 the area of MSM investigation was Joe the Plumber’s trade license status and the DNA of Palin’s Down Syndrome child.
NOT Baraq Obama’s dubious past.
And yet out self-appointed delusional demigod promised that under HIS administration energy prices would skyrocket!
Then to add insult to injury, he continued to exclude energy costs from our cost of living calculus.
I haven’t filled my van in almost 6 months. It’s not that I don’t want to. But Sams Club has a 100 dollar limit on CCs at the pump. You can use debit but my rewards card is not a debit. 100 bucks will fill it to 3/4 of a tank, sometimes higher. If I swipe again the darn CC company locks the card for possiable fraud.
So, every other day or so I pull up to the pump and put a 100 dollar bill in my van. Been spending 250-300 a week for months now.
Sounds like me ,,, my job has my gas expense at about 20% of income ... it makes up easily 80% of my vehicle operating costs..
I have tried to raise my prices however I complete with a group of idiots including those that live in mommy’s basement and drive her car (with her fuel I’d bet) I do tech work as well as low voltage wiring.
Sadly, even though our state requires a license to do low voltage they rarely inforce it. So even that work is going to the lowest unlicensed, uninsured bidder if the person paying the bill does not ask enough questions.
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