May 05, 2008

A Funny Thing Happened on the Way to the Gas Pumps

Gas prices have risen by nine cents per gallon since the end of April, which was, coincidentally, around the same time that McCain and Clinton both endorsed plans to temporarily suspend the eighteen-cents-per-gallon federal gas tax. So, the theoretical savings to Americans has already been diminished by 50% since all of this political posturing began.

I'm not an elite economist, but isn't it safe to bet that gas prices will rise by even more by the middle or end of the summer at a rate that far exceeds the eighteen-cent-per-gallon discount? That's not to say that people couldn't benefit from some sort of savings at the pump, but Obama's guess that the oil companies would just "jack up" their prices if the tax is suspended is looking like yet another example of a judgment based on reality rather than polling. That theoretical $30 savings that each driver would see is getting smaller and smaller every day.

At this rate, Americans would be better off applying for a gas station credit card with a rewards program.

Posted by Doug at May 5, 2008 11:04 AM