MYTH — Gas Prices Are Higher Than Ever
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From: Bristol, Indiana
MYTH — Gas Prices Are Higher Than Ever
I was watching 20/20 with John Stossel...and saw something very interesting....thought that I might share.
click here
or read.....
click here
or read.....
No. 7 — MYTH — Gas Prices Are Higher Than Ever
"Record high gas prices," has been the refrain of many in the media this past year while talking about the price at the pump. Jay Leno even said, "They don't even put the price on the sign anymore — it just says, 'If you have to ask, you can't afford it.'"
Drivers I talked to at a New York gas station agreed. "Too high, it's scary," said one man. "It's going up and up and up and it's the most expensive it's ever been," said another woman.
But the reality is that the "record high gas prices" are a myth. The U.S. Department of Energy records show that when you adjust for inflation the price of gas is now lower than it's been for most of the twentieth century. Prices are lower now than they were 25 years ago. Yes, they price is up from the 1998 all time low of $1.19, but they are a dollar lower than they were in the early 1980s.
When I told this to people at the gas station they didn't believe me. And why should they? The media keep telling us about the record high prices — they're just not adjusting for inflation!
I asked people to compare the price of gas to bottled water or ice cream you can buy inside the gas station. Most people were sure the gas was more expensive. But they're wrong.
If you took the average price of a bottle of water, a gallon would cost nearly $7. A gallon of Haagen Dazs ice cream would set you back nearly $30 — 15 times the price of gas.
And think about how much harder it is to produce gasoline.
First, oil has to be sucked out of the ground … sometimes from deep beneath an ocean or underneath ice or from the Middle East where workers risk their lives. And just to get to the oil often means the drill may have to bend and dig sideways through as many five miles of earth. What oil companies find then has to be delivered through long pipelines or shipped in monstrously expensive ships, then converted into three different formulas of gasoline, trucked in trucks that cost more than $100,000 and then your local gas station has to spend a fortune on safety devices to make sure you don't blow yourself up.
Gas is actually a bargain, not that you'll hear that from most of the media.
"Record high gas prices," has been the refrain of many in the media this past year while talking about the price at the pump. Jay Leno even said, "They don't even put the price on the sign anymore — it just says, 'If you have to ask, you can't afford it.'"
Drivers I talked to at a New York gas station agreed. "Too high, it's scary," said one man. "It's going up and up and up and it's the most expensive it's ever been," said another woman.
But the reality is that the "record high gas prices" are a myth. The U.S. Department of Energy records show that when you adjust for inflation the price of gas is now lower than it's been for most of the twentieth century. Prices are lower now than they were 25 years ago. Yes, they price is up from the 1998 all time low of $1.19, but they are a dollar lower than they were in the early 1980s.
When I told this to people at the gas station they didn't believe me. And why should they? The media keep telling us about the record high prices — they're just not adjusting for inflation!
I asked people to compare the price of gas to bottled water or ice cream you can buy inside the gas station. Most people were sure the gas was more expensive. But they're wrong.
If you took the average price of a bottle of water, a gallon would cost nearly $7. A gallon of Haagen Dazs ice cream would set you back nearly $30 — 15 times the price of gas.
And think about how much harder it is to produce gasoline.
First, oil has to be sucked out of the ground … sometimes from deep beneath an ocean or underneath ice or from the Middle East where workers risk their lives. And just to get to the oil often means the drill may have to bend and dig sideways through as many five miles of earth. What oil companies find then has to be delivered through long pipelines or shipped in monstrously expensive ships, then converted into three different formulas of gasoline, trucked in trucks that cost more than $100,000 and then your local gas station has to spend a fortune on safety devices to make sure you don't blow yourself up.
Gas is actually a bargain, not that you'll hear that from most of the media.
'People of Wal-Mart' 2010 finalist
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From: Oklahoma/Texas
well, in the 50's you could buy a gallon of milk for about the same as a gallon of gas. with the exception of a few weeks, not even close.
A dollar may be a dollar, but you get less for each dollar than you used to.
A dollar may be a dollar, but you get less for each dollar than you used to.
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From: Texas
If you took the average price of a bottle of water, a gallon would cost nearly $7. A gallon of Haagen Dazs ice cream would set you back nearly $30 — 15 times the price of gas.
the inflation thing i will give u. i just wish my pay kept up with the inflation rate
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From: Budd Lake NJ / Melbourne FL
When I got out of the Navy in the mid 50's, gas was about .25 a gollon. I was only making 1.00 an hour (apprentice electrician) so I had to work a quarter of an hour for I gallon fuel. How long do your have to work to by a gallon? Journeymen elec had to work 8 minutes. Don't compare dollars, compare labor. Vehicles worked out the same way
Bob H
Bob H
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From: Va Beach
Interesting comparison for inflation except for one thing. I dont pay 30 dollars a gallon for icecream. I buy the 2 1/2 gallons for 5 dollars discount stuff. Where is the comparison? I cant buy cheap decent gas or diesel. The water thing drives me nuts too. If you are dumb enough to buy expensive water in a bottle that came out of a tap somewhere then you deserve to pay alot for it. That is your choice. There is no choice at the pump to speak of.
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From: Oklahoma/Texas
Originally Posted by Bob H
When I got out of the Navy in the mid 50's, gas was about .25 a gollon. I was only making 1.00 an hour (apprentice electrician) so I had to work a quarter of an hour for I gallon fuel. How long do your have to work to by a gallon? Journeymen elec had to work 8 minutes. Don't compare dollars, compare labor. Vehicles worked out the same way
Bob H
Bob H
That is the other thing that many fail to realize. 30 years ago, people didn't commute an hour plus to go to work. Mom shopped once a week or so at the local store where Dad drove their ONE and ONLY car six blocks. Think about this, on average, you drive about 4 times as much now as people 30 years ago. Not to mention, every teen "has" to have a car to go to school, work, dates, etc.
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From: Monticello, IN / Anderson, IN
I just have one problem with that story. They always compare a gallon of gas to a gallon of something else. IT is a horrible comparison. You don't see a long haul trucker pull over to buy 200 gals of ice cream to keep his truck running. Most house holds go through a gallon of ice cream a month. Gas we use about 5-10 gallons a day. You cant compare it to something like this. You really can't compare gas to anything. Plus if it is so expensive to manufacture gas why do oil companies profit 9 billion a year. Report that John Stossel!
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From: Flaradaw
You said a mouthfull there BossHawg.. right on!
Originally Posted by Bosshawg600
I just have one problem with that story. They always compare a gallon of gas to a gallon of something else. IT is a horrible comparison. You don't see a long haul trucker pull over to buy 200 gals of ice cream to keep his truck running. Most house holds go through a gallon of ice cream a month. Gas we use about 5-10 gallons a day. You cant compare it to something like this. You really can't compare gas to anything. Plus if it is so expensive to manufacture gas why do oil companies profit 9 billion a year. Report that John Stossel!
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From: Oklahoma City
Originally Posted by Bosshawg600
I just have one problem with that story. They always compare a gallon of gas to a gallon of something else. IT is a horrible comparison. You don't see a long haul trucker pull over to buy 200 gals of ice cream to keep his truck running. Most house holds go through a gallon of ice cream a month. Gas we use about 5-10 gallons a day. You cant compare it to something like this. You really can't compare gas to anything. Plus if it is so expensive to manufacture gas why do oil companies profit 9 billion a year. Report that John Stossel!
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From: Tomball, Texas
Originally Posted by TEXWS6
Refining is not where the money is made!! Exploring and producing the oil/natural gas is where the expense it. Refining is expensive as well, just not as risky!!
MikeyB