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The Rising Gasoline Price Blame Game

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Gasoline prices continue their rise in Billings this past week.   March 1, Billings had the lowest gasoline prices of any market area in the country at $2.89 per gallon.  A spot check of prices around the city today showed prices at $3.64 per gallon–an increase of 26% in two months.

Montana Senator Max Baucus claims it’s the oil companies fault prices are climbing so quickly.  On Bloomberg.com, the Senate Finance Committee Chairman said he will seek to repeal billions of dollars in tax breaks for multinational oil and gas companies.

Who’s At Fault?

I don’t think it matters much who is at fault in the gasoline prices.  Essentially your paying 18 cents in fuel costs for every mile you drive your vehicle.    Those figures are based on averaging 20 miles per gallon, your mileage may vary.

While finding someone to blame is politically advantageous to some, the bottom line is it effects everything we buy or do.  Higher prices cause higher food prices by increasing the shipping costs.  Those prices, like any tax, are passed straight to consumers.

A co-worker the other day longed for the days when she could take a long leisurely drive in the country side just to think.  Are you driving less these days because of the price of gas?

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