Saving $1 billion a day on gasoline

Posted Dec 28th 2008 1:40PM by Douglas McIntyre
Filed under: Consumer Experience, Middle East, Venezuela, Oil

OPEC may end up offering the U.S. a larger bailout that the federal government. Data on what Americans spend on gas show that because of the fall in prices at the pump, U.S. drivers are saving $1 billion a day.

According to The Detroit Free Press, "Americans are paying $1 billion less per day for gasoline now compared with mid-July, when the national average price was more than $4 per gallon."

That makes OPEC and other oil-producing countries better friends to the consumer than the federal government is. The new administration is planning to spend about $700 billion over two years to try to increase jobs and stimulate the U.S. economy. The savings on gas over two years, assuming that prices stay where they are, is almost $730 billion.

The gasoline savings do not take into account what American businesses like airlines and petrochemical companies lay out for oil-related products. Trucks that run on diesel also cost much less to operate.

On the back of an envelope, the benefit of cheaper oil is well over $1 trillion over a 24-month period. Perhaps America should have sent Saudi Arabia, Iran, and Venezuela a Christmas card.

Douglas A. McIntyre is an editor at 247wallst.com.

Tags: fuel prices, gas prices, inthenews, oil prices, OPEC

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Reader Comments (Page 1 of 1)

12-28-2008 @ 7:08PM

william lindblad said...

We did. At least to Hugo and Mahmoud.
Both have been on oil supported spending sprees. Keep in mind that Iran subsidizes their fuel. They do it by taking money from exports to keep the pump price low. Hugo has been in "improvement" mode since the price per barrel was sky high. Got a lot of projects going? Which one do you stop first?
The Saudis can weather the storm.

12-28-2008 @ 8:19PM

steve bourg said...

Our taxpayers should be so lucky with taxes. Why can't Obama understand that 100% of taxpayers need a reduction, maybe of 1/2 the $1T ? Somehow he doesn't get it, and our economy will suffer....saving huge on crude oil is terrific, but we're still toast with the semi-socialists in almost total control on Jan20. 41 Repub Senators may have enough power to get a few compromises, but they'll have no chance for any tax policy improvements to help our Capitalism.

12-29-2008 @ 5:04AM

gunner said...

lol yea, well If I was to become president the first thing I would do Is tell the world the US is in the oil drilling buisness from now on, We would drill so much oil that our people would never see one barrel come from any were else, There starts american jobs. we would also get into natural gas recovery and then finally nucular electricity. Why would anyone want a government to run such things. Its called greed. Greed is what started this whole mess. But its simple as this, make the 90% of the population pay less for what they need to survive on and they will spend money. Common sense. somthing most peeps dont have anymore