Gasoline Prices Consuming More Household Income Than Ever

After the Recovery Summer, came the Recovery Fall and now we’re deep in Recovery Winter. Then it’ll be time for Recovery Spring and all the other four seasons coming around again and again. Because when you’re deep in the Obama Recession, then you can never Recovery too often. And like the flu, no matter how often the country recovers, it keeps coming down with recession again.

Forget the Groundhogs, the best sign that we’re in Recovery Winter is that gas prices are higher than ever. But that’s probably Bush’s fault.

The national average price of retail gasoline posted its biggest one-day increase in 23 months on Friday. According to AAA, the national average price of regular gasoline is $3.52 a gallon, 4 cents higher than the average price a year ago. The average price was $3.35 a gallon a week ago and $3.30 a gallon a month ago.

Retail gasoline prices have also hit a new milestone. “This is the highest price record for February 1st,” says OPIS analyst Tom Kloza.

Meanwhile, the U.S. Energy Information Administration reported Monday that gasoline expenditures in 2012 for the average U.S. household reached $2,912, or just under 4 percent of income before taxes. This was the highest estimated percentage of household income spent on gasoline in nearly three decades, with the exception of 2008, when the average household spent a similar amount. Gasoline prices averaged $3.63 a gallon in 2012, according to EIA.

Analysts said the uncharacteristically early price rise is due to several factors: some refineries closing permanently or shutting down for maintenance, climbing crude oil prices, and a shortage of supply in California, requiring fuel to be diverted from other areas of the country to make up for reduced inventories.

Going Green has its price. So does reelecting a man whose idea of fixing the economy is destroying it. And so the grim Recovery Winter marches on until the economy finally sees its shadow in 2016.

  • AdinaK

    Does anyone STILL believe that the radicals in Washington want to solve the high prices? I thought not. Rational folks understand, freeing up US energy is the last thing they want. Once again, they postponed the pipeline project!

    That being said, doesn't the above go hand in hand with economic deconstruction, albeit with six degrees of separation –

    Adina Kutnicki, Israel –

  • Mary Sue

    well wasn't it that one czar that Obama appointed, that said they wanted the gas prices to go up to European price levels?

  • figment newton

    I believe the last refinery in NJ just closed.

    Please explain to me why diesel fuel; which is less refined then gasoline costs more?
    Is this punishment for truckers who transport our goods as well as other services that use diesel powered vehicles? You would think it would COST LESS.

  • ronwagn

    The answer to high gasoline prices is to use CNG natural gas for fuel. It costs two thirds of gasoline or diesel.

    Natural gas is the future of energy. It is replacing dirty old coal plants, and dangerous expensive nuclear plants. It will fuel cars, trucks, vans, buses, locomotives, aircraft, ships, tractors, engines of all kinds. It costs far less. It will help keep us out of more useless wars, where we shed our blood and money. It is used to make many products. It lowers CO2 emissions, and pollution. Over 4,600 select natural gas story links on my free blog. An annotated and illustrated bibliography of live links, updated daily. The worldwide picture of natural gas. Read in 67 nations. ronwagnersrants . blogspot . com

  • JacksonPearson

    Thanks to low information voters, we're going to have higher fuel prices, Death Panels, spiraling debt, out of control spending, and an illegal alien still occupying the white house for the next four years. GRRRRrrr