Apr 07, 2008 -- The true costs of speeding during a price crunch at the pump
Like many Americans, truckers are furious about fuel costs that can be as much as $4/gallon for diesel. A big rig's typical run could cost upwards of $1,000! Truckers are trying to draw attention to the financial hurt with a disorganized strike. But this is not the first time they've been behind the 8 ball. In 1973, Pres. Nixon proposed a strictly enforced 50 mph speed limit during the nation's first energy crisis. Truckers mounted an organized strike and called for a 60 mph nationwide speed limit. A compromise was reached at 55 mph, which became the national speed limit for many years. Nixon was trying to save fuel costs in suggesting the lower speed.
Money magazine reports that for every 10 mph you go over 60, that's equivalent to the price of gas going up another 55 cents/gallon. So you might try saving dough by slowing down. You can also improve fuel economy by unloading your trunk and keeping your tires properly inflated. So many people ask Clark when gas will drop again. Several months ago, he shared some pundits' predictions that the price of a barrel of oil would again drop to $45/barrel. That seems almost like a joke now. Meanwhile, Dow Jones reports that all those spam e-mails you might be receiving about gas enhancers are total malarkey.
You'll also be hearing a lot of politicians attacking the oil companies alleging a price conspiracy. But when oil prices were low, nobody thought there was a conspiracy to lower prices, right? The real problem is the demand for oil, coupled with the Federal Reserve's poor stewardship of our economy. The Wall Street bail outs have caused our dollar to decline in value, which affects the price we pay for oil. Don't forget that your neighborhood gas station owner actually wants cheap prices. That way you'll buy more chips, cigarettes and sodas!