At the Pump

I have been waiting to see if gasoline will go under $2.00. It got down to $2.14 last week but on my way home last night it shot back up to almost $2.50. I know that there have been some issues with Iran threatening to shut off their oil if we don’t back off trying to stop their nuclear program but to my knowledge they are still pumping. I also read a little blurb on Exxon reporting astronomical profits last quarter on higher gasoline and oil prices. Welcome to capitalism, the land where money talks and when it becomes too expensive, you find a cheaper alternative.

Well, my carpool has broken up. I have been driving solo for about four months now partially because gas prices had become less painful and partially due to family schedules. If it goes up and stays up, carpooling looks like it may become the reality again. I realize that I chose to live 35 miles from where I work and that the commute and the associated costs are part of that choice. It does not make them any less painful. I guess I do have options in that I can carpool or look for a position that is closer to where I live. Both have their own drawbacks but when it comes right down to it, you have to be aware of your options.

What is even more painful is that my wife drives further to get to her work. It is 50 miles and since she is in sales, there are visits to customers that add to the mileage. Of course we can write some of those miles off on our taxes but the up front, out of pocket costs are the immediate concern.

I guess the bigger concern it when does this cause the economy to start to turn? Since wages have not gone up to compensate for the increase in oil prices and oil is in almost everything we buy, it will eventually have to start affecting the pocketbook in additional ways. The automotive companies are already feeling the pinch of higher oil prices in the cost of their resins and transportation costs. It will start the wave of price increases that will work its way to the consumer. For the American car companies, this would spell disaster. They barely have products that people want so if they have to raise prices, it will get ugly. And if the price of oil goes any higher, no one will be buying a vehicle that gets less than 20 miles to the gallon. Scratch every vehicle that they actually make money on (SUV’s). Prices will go up on everything, not just cars. People will have to start managing their money instead of spending it like drunken sailors. Wake up America. If you are not prepared, you will not like path you are traveling. Oh stop here, I need to fill up.

Icool

Cobb