As I write this column, gasoline prices at the nearby pumps are at $4.37 per gallon. In 2008, we were in shock because the price of gas broke through the $4-per-gallon barrier. Here we are again setting record highs.
I can remember back in 1970, when Sue and I were just married, the retail price of gas was $.36 per gallon. Of course, we were able to get it for $.25 per gallon at the Army base where we were stationed. We thought that was quite a deal to save $.11 per gallon. Now when we travel to see our daughter in Indiana, we top off the tank and save about $.15 per gallon there. Last weekend, we were in Lake Geneva, WI, and gas was $3.99 per gallon. We wished we had a 5,000 gallon tanker to fill and haul back to Huntley at a savings of $.38 per gallon. It’s amazing how our perspectives change over the years with inflation and market changes driving up prices.
It is interesting to see how gas prices vary from place to place. What causes these fluctuations? A little research revealed that it is basically due to a difference in taxes levied by the various taxing authorities – Federal, State, County, and City / Township. One recent article on this topic indicated that in Illinois about 23% of the price at the pump is tax – a mixture of excise, environment, and sales taxes. Indiana and Wisconsin have slightly less tax in their prices. It isn’t surprising that Illinois would have the higher tax. Add to that the highway toll charges, and your travel costs per mile get pretty steep here.
Well, I was thinking we had it pretty bad in Illinois until I researched a bit further. According to one online article, in mid-March of this year, when our prices were still below $4 per gallon, the price per gallon in Norway was $9.36 per gallon. The taxes built into their prices are staggering. At that price, I can’t imagine taking a Sunday cruise in the country. So, is there any place where gas isn’t expensive? Well, yes there is. In certain countries, the government subsidizes the cost of gasoline to appease the population. For example, the recent price of gas in Venezuela is $.18 per gallon. No, that isn’t a typo – that’s eighteen cents per gallon! That even beats the 1970 price per gallon at the U.S. Army base. Why? It’s an election year in Venezuela. Wait a minute – it’s an election year here too. Hmmmmmmm…
Editor’s note: To offset these gas prices, milk prices have taken a nosedive since our last trip to the supermarket. As of 3/30/12, Walmart on Randall Road in Algonquin has a gallon of 2% at the low cost of $1.78. Too bad we can’t have that 5,000 gal. tanker to fill up. This is down from a $3.45 price at Jewel in Algonquin on 3/24/12 with an additional $0.95 savings for Preferred Card members, which brings the total to $2.50. A $0.72 savings in the matter of less than a week when we switched to Walmart. Or $3.49 at Jewel (a $0.10 Preferred savings included) on 3/18/12, which is a $1.71 savings if you bought at Walmart. To our embarrassment, we found a receipt for 3/8/12 at Walmart with the same low price of $1.78. It pays to pay attention to milk prices nowadays lest you drastically overpay.
Keep those letters coming, folks. Send your ideas to: The Frugal Forum, P.O. Box 693, Huntley, IL 60142 or by email to: thefrugalforum@gmail.com.
