Faced with gas prices nearing $4 per gallon, as shown near downtown St. Louis, and the heavy summer driving months ahead, households are expected to spend $2,300 more on gas this year than seven years ago, according to a new report released by the Campaign for America's Future.
|
Keep On Truckin', Gas Prices Are Going Up Again!
ST. LOUIS, (PRNewswire-USNewswire), June 1, 2008 - National gasoline prices hit $3.937 on average May 27, according to both AAA and the federal Energy Information Administration's weekly gasoline report. Diesel was about 40 cents a gallon higher than gasoline, and in high-priced California now averages $5.124. Some stations in the state are selling diesel for $5.50 a gallon and up, impacting the cost of almost all goods and food.
"Producers who have been making their record profits from drilling and selling oil are now trying to do the same on the refining end by keeping fuel supplies short in the summer driving months," said Judy Dugan, research director of the nonprofit, nonpartisan Consumer Watchdog. "High oil prices, combined with a drive to increase refinery profits, will be a double whammy on consumers this summer."
"The speculative frenzy in oil prices may be cooling slightly, but consumers are unlikely to benefit," said Dugan. "Congress is talking about getting speculation under control but should not ignore the role of refineries in price spikes just because pump prices have recently been driven by crude oil prices. Unless government also oversees refineries and the national supply of gasoline and diesel, consumers and the economy won't see the benefit if crude oil prices decline."
In recent months, refiners have cut back their production to match drops in consumer demand and prevent retail prices from dropping. This May, U.S. refineries have operated at an average of 86.5% of their maximum, while the modern average for May, especially before last year, was about 95%.
Consumer Watchdog noted that major oil companies reaped record yearly profits from their refining businesses in 2006 and 2007, at some points likely profiting by $1.00 or more a gallon just on refining. This drove pump prices to then-records at a time when oil cost half what it does now.
"Refineries want to boost their profits in the summer," said Dugan. "With drivers cutting back and truckers going bankrupt it's still business as usual for oil companies, even if it means wrecking the economy."
Teen Driver Crashes Cost $34 Billion Annually in U.S.
ST. LOUIS, (SLFP.com), June 1, 2008 - A first-ever analysis from AAA finds that crashes involving teen drivers ages 15 to 17 cost American society more than $34 billion annually in medical expenses, lost work, property damage, quality of life loss and other related costs in 2006.
"The impact of a teen crash extends beyond the emotional tragedies and physical injury at the crash scene, with costs that can extend to employers, families, the government and society overall," said Jack Peet, community safety services manager for AAA Michigan. "These economic figures provide one more reason for legislators to improve graduated driver licensing laws in their states."
One key improvement would be to limit the number of teen passengers allowed in a vehicle driven by a teen or novice driver.
According to a March 2008 report by the National Highway Traffic Safety Administration (NHTSA), when teenage drivers transport passengers there is a greatly increased crash risk, with greater risk associated with more passengers. In fact, when there are multiple passengers, the crash risk is 3 to 5 times greater.
The risk is also greater for younger drivers (age 16 and 17). The study sponsored by NHTSA found that in California, Massachusetts and Virginia, passenger restrictions reduced crashes among 16-year-old drivers. Crash involvement per 1,000 16-year-old drivers fell from 1.07 to 0.85 in California after passenger restrictions were passed. The reduction was from 0.88 to 0.61 in Massachusetts and from 1.41 to 1.10 in Virginia.
In Michigan, there are currently no passenger limits in place. Rep. Edward Gaffney (R-Grosse Pointe Farms) has sponsored HB 4151, which would limit the number of teen passengers to one. The bill has been referred to the legislature's Transportation committee. Another bill would prohibit 16-year-old drivers from using cell phones while driving. Cell phones and teen passengers are among the most worrisome sources of distraction for teen drivers.
New research by AAA shows an alarmingly high number of teens admit to engaging in very risky behavior behind the wheel. Some of these behaviors -- like driving under the influence -- are problems the safety community has battled for years. Others -- like text messaging while driving -- are new behaviors. They all pose a threat to road users and must be corrected by teens, parents and safe driving educators for the safety of teens and everyone else who uses our roadways.
"Motor vehicle crashes are the number one killer of teens, claiming more than 6,000 15- to 20-year-olds each year," said Peet. "Many of these deadly crashes are due to immaturity and inexperience, factors that can be partially addressed by helping teens gain valuable driving experience in a low-risk learning environment."
A low-risk learning environment includes:
-- Minimizing distractions such as teen passengers, cell phones, MP3
players or CDs;
-- Driving during the daytime when crash and fatality rates are lower for
teens and drivers of all ages;
-- Providing positive driving role models through parents who exhibit
safe driving behaviors such as obeying speed limits, not driving while
distracted, refraining from drinking and driving, and being courteous
to other drivers.
Everyday Costs Rising Sharply While Wages Are Falling
ST. LOUIS, (PRNewswire-USNewswire), June 1, 2008 - Faced with gas prices nearing $4 per gallon and the heavy summer driving months ahead, households are expected to spend $2,300 more on gas this year than seven years ago, according to the Campaign for America's Future.
The report also provides state-specific evidence that the economy is in dire straits and that American families are hurting. It provides detailed information about state job losses and stagnant wages, and shows energy, health care and college tuition costs on the rise. States experiencing the most economic difficulties are Michigan, North Carolina, Ohio, Maine, Missouri and Tennessee.
The annualized cost of gasoline per household is computed by multiplying three figures.
--The average number of vehicles per household in both 2001 and 2008: 1.9
[Source: U.S. Dept. of Energy, Energy Information Admin., Transportation Energy Consumption Surveys]
--The average number of gallons consumed in a year: 573 in 2001 and 597 in 2008
[Source: U.S. Dept. of Transportation, Federal Highway Admin., Annual Vehicle Distance Traveled in Miles and Related Data.]
--The average price per gallon: $1.47 for 2001 (which is $1.78 adjusted to today's dollar) and $3.80 today. [Source: Oil Price Information Service in cooperation with Wright Express, distributed by AAA.]
In 2001, (1.9 vehicles) x (573 gallons per vehicle) x ($1.47 per gallon) = $1,600.39
2001 adjusted for inflation, (1.9 vehicles) x (573 gallons per vehicle) x ($1.78 per gallon) = $1,937.89
In 2008, (1.9 vehicles) x (597 gallons per vehicle) x ($3.80 per gallon) = $4,310.34
Difference from 2001 to 2008 = $2,709.95. Difference from 2001 to 2008 adjusted for inflation = $2,372.45. In sum, "more than $2,300" is a very conservative figure.
|
