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Wednesday, May 16, 2007

Relatively speaking, gas is cheap...so far

Cockeyed.com explores the "price of a gallon," and shows that gasoline still remains among the more inexpensive liquids that Americans use on a daily basis. A Budweiser, for example, sets you back almost $9/gallon and it won't get you near as far as a gallon of gas.

Despite the comparatively favorable economics, this week's petroleum update shows that gasoline inventories remain near historic lows, meaning Americans will likely continue to pay north of $3.00/gallon for gas all summer. This price level will be the minimum, however, and could surge significantly higher if hurricanes or breakdowns cause unplanned refinery outages.

For Americans feeling sorry for themselves, here's a second reality check. Gas prices in many European countries are hovering near $7.00/gallon.

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