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Americans Will Spend $179 Million More on Gasoline Today than One Year Ago

Gasoline prices are 44 cents higher than they were last year at this time

Economists worry about rising oil prices because it tends to generate higher pump prices for Americans. With more money spent on gasoline, there's (theoretically) less money available to spend on goods and services.

Today, GasBuddy.com says that the average price for a gallon of unleaded gasoline is $2.792, up from $2.344 last year at this time.

Now, as a country, it is estimated that we consume 146,000,000,000 gallons of gasoline annually. That converts to 400 million gallons each day.

Therefore, the 44.8-cent difference between today and last year at this time, costs Americans an additional $179,000,000 in fuel charges daily.

And this doesn't account for premium gasoline or diesel fuel charges.

Consumer spending makes up roughly two-thirds of our economy so when gas prices rise, economists worry -- it means that less money is available to pump back into businesses, and that the economy should slow down.

The good news in this type of story is that people in the market for a new home loan may benefit. A slowing economy tends to lead to lower mortgage rates.

As Hurricane Season rolls on and the post-Fed meeting chatter dies down, expect to hear more from the news on the price of oil and gasoline.

Posted by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist on 09/27/2007 03:37 PM

Comments (16)

consumer spending, economy, business, mortgage market

This post has been included in Maryland Information

16 Comments on Americans Will Spend $179 Million More on Gasoline Today than One Year Ago

I paid $2.73 a gallon yesterday....which I feel is outrageous!Especially when companies like Exxon/Mobil consistantly turn a 10 billion profit quarterly.Just crazy!

09/27/2007 03:49 PM

by BLRGUY(Beach & Luxury Realty Inc)

That's an interesting post and if you think about that in combination with the fed cut of 0.5% you have to think it will only go even higher.

www.paul-dunn.net

09/27/2007 03:59 PM

by Paul Dunn - Tucson's #1 FHA Loan Expert (First Priority Financial)

No complaining, folks. The moment you enter California the cheapest gas is still just shy of $3

Way to keep your finger on the pulse of the market Ilyce

09/27/2007 09:59 PM

by Hemet Home Loan Guy, Joey Aszterbaum (Patrion Mortgage)

Wayne - You're absolutely right. It's just sickening. Here in Maryland, some folks have even gone so far as to raise the gas tax for transportation's sake. Yeah right!

09/27/2007 11:44 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

Paul - I didn't even think of that. Good point.

09/27/2007 11:45 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

Joey - Yet another reason why I can't move to California. LOL

09/27/2007 11:46 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

Ilyce - It was $2.59 here as of Tuesday when I filled up. I am sure it will go up though. It is interesting to see what the price is in different places around the country.

09/28/2007 01:15 AM

by Candy Henthorne- Spring Texas Real Estate (Results Realty)

Hi Ilyce,
Wow! That pretty scary. We're at $2.79 to $2.89 depending on the location right now. Interesting post, Ilyce.

09/28/2007 08:16 AM

by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist (Kingsbridge Realty, Inc)

This is a TERRIBLE THING!! Too bad my SUV is too new to trade in! I love it too...but it's a gas hog! I know I'm getting taken at the pump!

09/28/2007 02:10 PM

by Real Estate Specialist | Brandon, FL | Susie Roscoe (Signature Realty Associates)

I believe it...I'm putting $20.00 in every other day and I look at the gauge and I'm always on E!!!

09/28/2007 09:23 PM

by Debbie Malone, RE/MAX, Lynchburg, Smith Mountain Lake, Real Estate Agent (RE/MAX 1st Olympic, ABR, e-PRO, ASP)

Candy -It's been a while since I've seen a number that low.

09/28/2007 10:07 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

Cynthia - My car knows nothing but premium, so that's about where I am this week, depending on where I am.

09/28/2007 10:09 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

Debbie - I sure do feel for you, hon. Keep your head up!

09/28/2007 10:09 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

Susie - One day, the G-dogs will actually release what they know so we can cut down on all this wasted money. Unfortunately, I don't think it will be soon.

09/28/2007 10:11 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

WOW.. this is crazy

09/28/2007 10:12 PM

by Mehmet Met Dilsiz (FND Photography)

Mehmet - It sure is, isn't it?

09/28/2007 10:14 PM

by Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist (Envision Lending Group)

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