Re: GAS PRICES

Posted by CNKS on August 13, 2005 at 08:49:51 from (204.249.178.138):

In Reply to: Re: GAS PRICES posted by F-Dean on August 13, 2005 at 06:25:05:

The $90 figure has been in the newspaper (including the Wall Street Journal) several times. Any one can come up with any figure, depending on what the assumptions are. Assume 4% inflation since 1980. Take a hand calculator, enter 1.04 x 1.00/gal, hit the equal key 25 times, you get $2.66 a gallon. 3% inflation gives $2.09 a gallon. If I remember right I believe gasoline peaked at about $1.30 around 1980. Using that figure and 3% inflation the current price would be $2.72. I don't like the price anymore than you do but gas has been cheap a LONG time. Doesn't make it any less painful. And oil and gas prices don't have much relation to inflation anyway. Very difficult to get the $90 per barrel price or even the $66 per gallon price, using the nominal inflation rate. Let's say the price per barrel was $15 in 1985, after all the hoopla settled down (Of course I don't have the actual figures). To get from $15 to $66 requires an "inflation" rate of 7-8%.

Follow Ups:

• Re: GAS PRICES F-Dean 15:20:28 08/13/05 (1)
  • Re: GAS PRICES CNKS 17:48:35 08/13/05 (0)

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