What does our dependence on oil cost you at the pump?

Posted by: Ethan Fawley in transportationreportdriving on  

Gas pumpA new report from the National Resources Defense Council highlights the absolute cost of our dependence on oil. In Minnesota, the average driver in 2008 spent $2,354 a year, or 5.5 percent, of their income on gasoline, which was 25th in the country. Drivers in Mississippi spent the highest percentage of their income - 9.14 percent - while those in Connecticut spent the lowest at 3.24 percent. While gasoline topped more than $4 a gallon in July of 2008, these data are based on the average cost of gasoline in 2008, which was $2.77 a gallon (or 10 cents a gallon less than the U.S. average right now).

It's easy to see how the jump to $4 a gallon played a role in our economic recession and how future increases in gas prices will leave our economy struggling to keep up if we cannot make changes. At $4 a gallon, the average Minnesota driver would spend nearly 8 percent of their income just on gasoline! And while people did drive about 4 percent less when gas prices were higher, most people do not have the transportation options to adjust to rising prices without simply taking it out of day-to-day expenditures elsewhere. This is especially true in rural areas, where choices are even fewer and distances are farther.

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