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WHAT DETERMINES HIGH GAS PRICES

AND WHAT TO DO ABOUT IT

What determines high gas prices? Believe it or not a supply and demand driven global free market. Plentiful supplies and low demand means low gas prices. Tight supplies and high demand means high gas prices.

Though there may be attempts to control supply by some oil producing nations or other oil interests, ever increasing demand for a resource that is ever harder to find is primarily what determines high gas prices.

Even with high gas prices, most of us in industrialized nations still need to use mechanical forms of transportation that consume energy, oil energy that gets more expensive every day.

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HIGH GAS PRICES AND YOUR NEXT CAR

The current energy price situation makes fuel consumption a more important facet of car buying than ever. But deciding what to do about it can get complicated.

You already know that a smaller car will give you better mileage. You also know that less fuel burned is less money going out of our economy, and out of our wallets. And you know that less fuel burned means less pollution.

Most of us, to one extent or another, are well aware of the impact of our oil consumption. But most of us, for one reason or another, have to opt out of the 40mpg and over cars. And our reasons for doing so are perfectly valid.

The problem with those micro cars is that they aren’t practical for a lot of people. They are often made for petite folks with no families. They certainly aren’t made for those of us with bad knee joints and other ease of entry issues.

For a lot of people, especially those hauling kids and grandkids around, there are safety concerns with the smaller cars. Small cars with superb mileage numbers sound great, until you drive one of them on a freeway that feels more like a free fire zone.

There are, however, a lot of family size vehicles in the 25mpg to 30mpg range. Most of us don’t have to drop down to a 12mpg beast to get a decent amount of utility and safety value from a vehicle. But those who do buy a beast also have reasons for their decisions.

If you feel that you are damaging the environment with every drop of fuel burned, or that burning less fuel is a way to support our troops, then you too have a valid reason to buy the car you want. And that will probably be an economy champ.

The beauty of free markets in free societies is that we are all able to make these kinds of decisions for our own reasons. It’s all very personal, and whatever we decide to drive, it’s nobody else’s business.

You need to decide what kind of vehicle fits your needs within your budget. You just have to be sure to factor in gas prices and the amount you expect to spend each month.

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HIGH GAS PRICES AND YOUR MONEY

Whatever car you decide to drive, there are ways to save money at gas stations, and there are ways to mount an offensive against high gas prices.

That’s what this site is about.

You can find more information about what determines high gas prices and what you can do about it on our Energy Resources and Energy Investing pages.

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