No, it never does! The same thing happens here in England - fuel prices might drop slightly but transport companies, who have previously blamed price increases on the rising cost of fuel, never lower their fares accordingly. Mind you, fuel is extortionately priced here as it is. Most people have to be really careful about how often they drive.
It's certainly great from a US consumer's perspective, as it's the equivalent of a tax reduction. Hopefully people won't get too adjusted to it, buying big gas guzzlers and becoming even more reliant on their cars. A bad scenario in a year's time would be a double whammy of gas prices back up high and interest rates rising. Let's enjoy it while it lasts but don't adjust our worlds on the assumption that low gas prices (and low interest rates) will be around forever.
I am taking advantage of the low fuel prices while they last, it's literally money in my pocket, I wish this could last longer though, I've heard rumors that the prices will go back up again soon.
Federal Tax on gas has not been increased in about 20 years, There has been speculation that now would be a good time to make an increase, however not all states pay the same in fuel taxes. While it might not hurt some of the lesser taxed states it could really wreck havoc on states like New York, California and Hawaii. Right now we are paying 60cents a gallon higher then the majority of the states. Don't get me wrong $2.73 is not bad, but it is not $2.12. I did not always have to pay $200 a month in gasoline to get to and from work. Sadly public transportation is not even an option. It stands to reason the Fed will make an increase on gasoline tax, it is long overdue, just not certain how this will effect some of the areas that are already in a bad situation.
I love it when the price of the oil goes down. I could remember seeing one of the Arco gas stations being around $3.06 where I live. The only issue with low gas prices in my area is that people act like bigger idiots when it comes to gas.
This is my opinion of why Saudi is not cutting production. They want competitors to stop exploring and for people to ´adjust´ to low gas prices. As you said, but bigger cars, or maybe even consider moving further from work.. stuff like that. If OPEC keeps oil prices low, then it changes the next 10 years.
Oil this low is actually a "tax" on me and some others I know. I sure as hell don't want to see any more taxes though. Big govt just wastes most of the money, do other things with it, line their own pockets, etc. I say that if they're going to raise the gas tax, they need to cut taxes elsewhere. Of course we all know that won't happen.
Yea your right that seldom happens, it is more like they just shift from tax burden in one area to a tax burden in another. So we know right now Obamacare will be a tax burden for many, how that will shake out is anyone's guess. I read some crazy stuff about big pharma and some plans like Express script no longer covering brand name drugs? I need to read that again it seemed weird. Guess you have to pay cash if you want it but then can I deduct that from my taxes? I don't think I recall there ever being a cut in one area tax wise where we didn't get it from some other end. This makes me nervous about the gas dropping, I think they said something like 177 days in a row now? Hmmm funny our gas was up 3 cents this week, so even at a penny a day we are no where near being down $1.77. To much hype IMHO I think we will have the other shoe drop in the spring. just waiting....
You are so right about airline fees. I don't gas up as I use public transportation often, but I do fly quite often for work. It's surprising that inspite of the fact that there are constant news about gas price rollback, airline tickets keep on going up. They do have promotions from time to time, but those promotions are under very stringent rules that if you happen to have some changes in your schedule, you end up losing your ticket and not being able to get a refund. I do hope airlines also make adjustments when gas prices are much better.
Hold the boat...I heard on the news yesterday that we have seen how low fuel is going to drop and that it is back on the rise again. I vaguely remember paying about $2.29 per gallon a week and a half ago and paid $2.39 last night when I got some. Will it go above $3 again in the near future?
