It seems almost everyday that I hear someone complaining about the price of gas. The media feeds the fury with constant stories each time the gas price inches up a couple of cents – or even down a couple of cents. The media can not get enough out of the whole gas price issue. Personally, I am sick of hearing about it. Gas prices are up. They are higher than they were 5 years, 10 years, or even 15 years ago. The are few things that have not increased in price during this time.
If we take a closer look at the historical price of gas, the price adjusted for inflation is hovering the same price as in 1920. Personally, I would expect the inflation rate for the cost of a gallon of gasoline to exceed the overall inflation rate. It is derived from a natural resource which is likely to eventually run out. In addition, considering who controls much of the petroleum in the world, we are lucky it has not grown at a much much faster rate.
It also puzzles me that the people I hear complaining about the price of gas as usually the ones filling up their 13 miles per gallon SUV. If the price of gas is such an economic pain, why don’t they just get a more efficient vehicle?
An interesting article was published yesterday on CNNMoney.com that discussed the prices of gas in developed countries acrossed the globe. Bottom line – gas is cheap in the United States. The U.S. ranked #111 as the most expensive gas prices list while ranking #45 on the cheap gas prices list Most of Europe is paying over $8 per gallon. The highest priced nation, Bosnia-Herzegovina, is at $10.86 per gallon. Think of that next time you fill your tank.