Gas Prices and the Annual Costs to Consumers
Chart of the Week for June 13, 2008 - June 19, 2008
The price of gasoline has risen steadily over the last few years with a significant increase in the last few months. According to motorist group AAA, the U.S. national average price of gasoline reached $4 a gallon on June 8, 2008. This increase is illustrated in the chart above with the average annual price of gasoline and the annual cost of fueling a car1. The average annual cost of fueling a car has risen over 200% since 1991 and over 20% in the last year. Note that the average annual price of gasoline for 2008 is only $3.34 which is below the current price.
Marginal increases in the cost per gallon do have an impact on the annual cost of fueling a car. For instance, a $0.20 increase in the price of gas could increase your annual fueling cost by $116 for a passenger car and $144 for a light truck. In addition, the price of gas can impact the goods and services supply chain. If producers pass on higher gas prices, consumers could see higher prices on many goods and services.
1Assumes 12,500 miles per year at a consumption rate of 0.0465 gallons per mile.
This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.
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