advertisement
Looking for something on the site? Search for it here! Also see Clark's Greatest Hits

Jan 08, 2010 -- Gas prices rise as the dollar weakens

Gas prices are rising at a time of year when they normally decline. Factor in the oversupply of oil and that makes this phenomenon even stranger. what's behind this unusual pattern? The decline of the dollar.

The price of oil is typically tied to the U.S. dollar in trading around the world. That means we're seeing a big run-up in price as our dollar weakens against other currencies. It's a consequence of the reality that the world is losing faith in how we keep our own economic house.

You can't really control what you pay at the pump -- other than by comparison shopping for the lowest-priced gas. The national average right now is $2.70 versus $1.60 one year ago at this time.

Economists who follow oil say that eventually the oversupply will win out over the weak dollar, and that's when the price will come back down. But you can't control when that happens either.

What you can control is how you buy a vehicle. Try buying cars that get more miles per gallon rather than cars that have an impressive number of horses under the hood. Four-cylinder vehicles -- like the coming Toyota Sienna minivan -- may be ideal for many Americans because you get a large vehicle that's also fuel efficient.

Consider going from V8 to V6 or even trying out a four cylinder.

Expect many midsized cars to drop from V6 to four cylinders going forward. In Japan, the No. 1 car for 2009 was the Toyota Prius. How amazing that a hybrid can be the leader in a major auto market.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

Avg. rating: N/A

What others are saying

  • Gas prices
    I know that prices are coming back up and I understand the concept of the weak dollar - but I don't know that I've ever heard a real answer as to why gas prices had gotten so high ($4+/gal) and then all of a sudden dropped down to just over $1/gal (right around the time of the 2008 elections :o)). I'm just curious as to the contributing factors (or at least the publicly released explanations) as to why the prices had reached such exorbitant highs...
  • cars
    I bought a used (2006) Hyundai Sonata with the 4 cylinder engine. Great car, great MPG, and I paid cash...no payments. And still on manufacturer's warranty
  • what makes a car "American"?
    Toyota has a plant in Kentucky that makes the Camry. Is the Camry a foreign car because Toyota's stockholders are foreign or because the company was founded overseas? If the people making the cars are Americans (and they are!) then why not buy a "foreign" car that actually provides jobs for Americans? Is the Ford Focus built in America, or just assembled here from parts built in other countries? How many of Ford's cars are built in plants north of the Rio Grande and how many are built south of the Rio Grande?

    I have driven a 4 cylinder Toyota Corolla for years. Low maintenance + great mileage = a great value.

    I found this discussion of "American" cars on Yahoo answers, some of the data may surprise you:

    http://answers.yahoo.com/question/index?qid=20090701152345AAL5kwc
  • Shameless American Auto Companies
    Where are the American autos that get great gas mileage? The Ford Focus is the only one in the top ten of best gas mileage autos and it happens to be the best seller of them all, and that's rated at 24/35mpg! My 99 Bonneville with a powerful V6 gets damn near that. Every other car in the top ten is foreign. What is going on here? It's almost as if the American auto companies are trying to fail. I remember many smaller American autos from the 80s and 90s that got 24/35mpg ratings or better, fiestas, omnis, scamps, metros, cavilers, light pu's ect. What's going on that we can't mass produce good quality affordable and attractive gas saving cars? I've heard the excuse about it takes many years to change a line in order to build a new car, BS! I worked for a large construction/agriculture heavy equipment manufacture and new machines were designed, the lines re-calibrated and finished product was ready for sale within a years time or less. The auto industry has far more cash, engineers and workers than my former industry does so none of those excuses should be valid reasons not to have some good cars on the road already. 35mpg is pathetic! We should have cars that are averaging 50-100mpg. The technology and resources we have had for so many years, this can only mean we are being denied gas saving autos on a large scale on purpose. Who is really in charge of our auto industry?
  • price the same, dollar lost value
    its not the evil rich oil companies, but the value of the dollar is less so it translated to higher cost for a gallon of gas. Will continue to get worse when the dollar keep sliding. U.S dollar is same value as Canadian dollar now. it used to be 1.5 Canadian dollar. One day will be the same as pesos.
  • The Good Old Days
    About a year ago gas bottomed out in the Atlanta area at $1.38 a gallon. Amazing what a difference a year makes.

    Where will the price of gas be a year from now??
send to a friend  view as printer-friendly  RSS feeds
advertisement
advertisement
THIS WEEK'S POLL
advertisement