Summer Gas Tax Ax? Gee, thanks (sigh)..

Ok guys, some of the presidential candidates have an idea--they want to get the government to help you through these tough economic times by sending you a check for $3.68 (that's three dollars and sixty eight cents) each week during the summer. Why? Because times are tough and Every little bit helps, right? Any takers? No? Well, let's put it another way:

You've probably heard talk about a possible suspension of the federal gas tax over the summer, when prices are expected to be at their highest. Don't count on it making a dent in your fuel budget though. Let's take a look at why, using the great equalizer: straight arithmetic.

The federal gas tank is about 18.4 cents per gallon (and amounts to $10 billion deduction form the government's already deficit driven budget, if you care about such things.)

Let's say you have a 20-gallon gas tank, and you fill up once a week.

Saving 18.4 cents for every gallon you put in your car, you get (20 x $0.184) = $3.68

Over the 14 weeks from Memorial Day to Labor Day, we get (3.68 x 14) = $51.52.

People make a similar everyday decision when they drive 5 to 10 miles out of their way to save 5 cents on their fuel consumption, losing all the savings on the way (and probably costing more, especially if you don't fill the tank from empty once you do). So, over the entire summer, after spending over $1000 in fuel, you'll save $50, enough to fill your tank…a little over halfway one time, if we assume gas prices are at say, 3.75 on average for Regular Octane (87). If average fuel rises above this, you'll still only save $51.52 for the whole summer! $4 gas? You save fifty bucks over 14 weeks. $5 gas? fifty bucks back over 14 weeks.

What's worse, the idea that gas drops 18 cents will only drive up demand because people will "think" they're getting ahead—people will drive more and use more fuel, and prices will go even higher, all for fifty bucks...and more upset consumers. Suspending the tax may help make candidates for higher office look as if they care, but it either shows a lack of understanding of economics (which is unacceptable) or simply pandering for votes (which is expected).

So what should we do? I think we have to be honest that relative to the world we have always paid a lower price for fuel. I know, it sucks to hear that, but with other countries asking for more gas from the same people we get it from, and they are willing to pay more for it than we do, our demand for lower gas prices will be a lower priority in the eyes of the Oil Keepers. So, in the short term, we consumers should work to:

Drive Slower (which saves fuel).

Combine Trips by Planning ahead of all the places you need to go and find the best way to get there while conserving less fuel. Or Carpool, if you can.

Consider asking your employer if you can work from home once a week, if you have a job where you can work from home.

Use mass transit where it's effective, even if it may be a little uncomfortable.

In the long term,

Encourage your government officials to invest in sensible energy policies. By considering alternative energy sources that can replace the need for oil-based products, or seeking more efficient ways to heat and power your home, you can lower your energy bill, which can offset the increase in fuel costs.

What are some of your ideas and feelings on the possible gas tax rebate? Good Idea?

Energy (Money) Saving Tips Around the House

This week, a few savings tidbits:
Those of you who run your A/C regularly in the summertime (and you pay for your electricity), Con Edison has a cost to run it--about $0.25/hr. Now, that may sound like small change, but it does add up. Say that you run your air from 7pm (when you get home) until 7am (when you get up). That's 12 hours of consistent running of cooling air. At 72 degrees, that's 0.25 X 12 = $3/day. For 30 days, this brings us to $90 per month, which does not include other items in your home running on electricity.

Now, I understand that there's nothing like coming home from a long commute to a cooled, welcomed home. However, it's probably best to set your AC timer (if you have one) to start about 30 minutes before you are expected to arrive home.

By the way, most energy companies suggest you set your thermostat to 78 degrees--this is the "sweet spot" for savings. Every degree below that adds about $4 to your total cost per month. So, if you raise your thermostat from 72 to 78, you could save about $24/month on your average $100-a-month power bill.

1 - If every home in America completely replaced the five light fixtures they use most with Energy Star qualified models, we would collectively prevent greenhouse gases equivalent to the emissions of more than eight million cars.

2 - If every household in the country replaced four 75-watt incandescent bulbs that burn four or more hours a day with four 23-watt fluorescent bulbs, we would save as much energy as is consumed by approximately 38 million cars in one year.

OK, so as far as the environmental impact, I doubt much will matter in this case. The bigger issue I can see here is the bonus savings you can get economically. Although compact fluorescent bulbs are not the safest thing out there, it will definitely bring you long-term savings to your energy bill.

You can find more savings tips here from Georgia Power. We'll put more up later on. Take care!