So much for the price of crude oil coming off the top. The average price Americans must pay to fill up their tank has just spiked through $4.00.
Sempra Metal’s John Kemp notes in that the maximum tax refund cheque – issued by the Bush administration in an attempt to ward off recession – will now purchase just under 150 gallons of gasoline. But then most individuals will receive substantially less than the maximum since the tax is tapered with income.
In 2007, the average fuel economy of new cars added to the US fleet was 20.2 miles. So the maximum refund cheque is enough for one journey of around 3,000 miles. That’s good for a trip from Los Angeles to Boston.
What is intriguing though is that while the price of crude oil has more or less doubled over the past 12 months, retail gasoline is up just 26 per cent – 83 cents per US gallon.