ChiefsPlanet - View Single Post - Gasoline at $4 Coming to a Pump Near You, Unfazed by Rising Tab

damaticous · 05-26-2008, 08:45 PM

http://www.neatorama.com/2008/05/26/...-to-24-months/

Think that gasoline is expensive at $4 a gallon? Maybe, but apparently that price point isn’t high enough to make Americans change their usual day-to-day driving habit:

If oil hits $200 a barrel, which is the upper end of Goldman Sach’s prediction for prices over the next six months to two years, the gasoline picture changes quite dramatically. At $200 a barrel, crude alone would cost $4.76 a gallon. Add on the costs of refining and distributing as well as taxes, and pump prices could rise to a range of $6 to $7 a gallon.
U.S. drivers haven’t radically changed their behavior, and it is unclear at what price it becomes unprofitable for Americans to go about their usual day-to-day activities, said Eric DeGesero, executive vice president of the Fuel Merchants Association of New Jersey.
"Maybe at $6 or $7 a gallon, it becomes less attractive to go to work," Mr. DeGesero said. "We haven’t hit that point yet, but we might soon."

05-26-2008, 08:45 PM	#749
damaticous lurker Join Date: Sep 2003 Location: home Casino cash: $9979900	http://www.neatorama.com/2008/05/26/...-to-24-months/ Think that gasoline is expensive at $4 a gallon? Maybe, but apparently that price point isn’t high enough to make Americans change their usual day-to-day driving habit: If oil hits $200 a barrel, which is the upper end of Goldman Sach’s prediction for prices over the next six months to two years, the gasoline picture changes quite dramatically. At $200 a barrel, crude alone would cost $4.76 a gallon. Add on the costs of refining and distributing as well as taxes, and pump prices could rise to a range of $6 to $7 a gallon. U.S. drivers haven’t radically changed their behavior, and it is unclear at what price it becomes unprofitable for Americans to go about their usual day-to-day activities, said Eric DeGesero, executive vice president of the Fuel Merchants Association of New Jersey. "Maybe at $6 or $7 a gallon, it becomes less attractive to go to work," Mr. DeGesero said. "We haven’t hit that point yet, but we might soon."
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