Well, you better get ready. Gas was near an all time inflation adjusted high back in April, but as of right now we’re already paying more than we’ve ever paid for a gallon of gas. According to the Wall Street Journal:
The skyrocketing price of oil, now up more than 44% so far this year, is battering the airline and auto industries and causing consumers to cut back on driving and nonessential spending.
That jolt is reinvigorating worries that crude prices could ratchet still higher, putting a severe squeeze on many economies around the world and deepening the growing tension between the world’s big oil exporters and consuming countries.
This chart illustrates the price of Gas in the US in both real dollars and inflation adjusted dollars. Either way we’re at the top of the scale right now.
To make matters worse:
Over the past few months, the refiners who turn crude into gasoline have absorbed part of the rise in oil prices. Cooling fuel demand has made it hard for them to charge more for their products.
While crude-oil prices in the spot market have roughly doubled from last year, retail gasoline prices are only about 25% higher. But if refiners have to pay much higher prices for oil, they might resort to finally passing on the full increase in crude to consumers.
And by the way, if you think the oil companies are doing anything to actually help stem the rising costs, think again. Here are the stock prices for a few oil companies (by the way, I probably own stock in all of them):
So if you don’t own a scooter yet, you might consider investing in one of these.