Relief in the Long Term from High Gas Prices
From Yahoo! News today, ”Some signs of relief on gasoline prices”:
“Some of the long-term factors that have pushed oil prices to record levels are starting to change.
In large part because gasoline prices are over $4 a gallon, demand for fuel in the US is falling for the first time in 17 years. China is raising prices for gasoline and diesel – a move that might ultimately lower demand.
And, on Sunday, there were signs supply might increase as Saudi Arabia’s oil minister indicated that the country would increase production through the end of the year if needed. Iraq is also set to sign contracts with foreign companies to hike production.”
CPA Financial Planners Offer Advice on Gas Prices
In the mean time, while prices are still hovering around $4.00, here’s some advice from the AICPA (click-able pdf file):
As Gas Prices Soar, CPA Financial Planners Offer Advice:
“Owners of automobiles need to look at the total cost of ownership when they evaluate swapping their gas-guzzler for a more economic vehicle. Saving gas dollars may not be enough. A newer car can sometimes mean higher insurance, higher monthly payments, more interest, and sales tax on the purchase.”
Other tips they provide:
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Offset high gas prices by looking at your other expenses. Eat in more and shop less. Control ATM withdrawals. It’s hard to keep track of small expenses, and they can really add up.
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Try car-pooling. Ask your neighbors or take out a classified ad in your local newspaper. If it’s possible, ride a bike to work or walk.
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Instead of making several trips to run errands, try combining errands in order to use your car less frequently. If you live in an urban area, do your light errands on foot or by bicycle rather than by car. You’ll save on gas and get exercise at the same time.
- Consider gas cards that offer a percentage off on purchases, and consider public transportation.
What direction do you think prices are headed in the short (one year) vs. long-term (three to five years)?
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