A Gallon of Gas Costs $1.00?
I remember clearly when gas went over $1 a gallon.
It was 1980, and I was a senior of high school that fall. People talked about it, and it hurt consumer confidence.
The movie Argo does a great job of capturing the national mood during that time. Americans were angry about the Iran Hostage crisis, inflation went above 14% that year, and Carter lost to Reagan in the Presidential election.
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So, why do higher gas prices anger consumers so much? We see price increases for other goods and services, and we don’t seem to feel as much pain.
First, we all watch the total cost go up as we fill up our tanks. It’s unlike any other spending, because we see the numbers change at the pump.
Second, people don’t understand the costs required to get oil out of the ground, refine it, and get gasoline to a local station. When we hear that the price of oil is $85 per gallon, no one understands how that translates into the price of gas.
Finally, nearly everyone buys gas, regardless of age, location, or income level. Sure, some people drive electric vehicles, but the vast majority of drivers are still pumping gas. It’s a fact of life that ties us together, and we’re all frustrated when prices increase.
In a post-pandemic world, millions of people will never go back to commuting five days a week, and gas prices (along with the time investment) are a big factor.
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-Ken
