It seems like just a few weeks ago there was loud groaning about how high fuel prices had gotten and how there was no end in sight.  Everyone from the public to lawmakers to economists was worried and even panicking.

Here we are a few weeks later and the situation has been going the opposite way.  The predictions were that the price of fuel would continue to rise as economic woes continued to get worse.  While forecasters were fanning the flames of fear, economists and others started warning that the fuel crisis and the economic crisis are linked – not just locally – but also globally. 

The issue now is that with stocks tumbling, real estate and mortgages falling apart and banks having to be rescued on a daily basis, it is impossible for oil prices to be separated out of the mix.

In the past week alone, the cost of crude per barrel has fallen over $6.00, to under $87.00.  In a period when gasoline was up over $4 per gallon a month or so ago with dire predictions about $5, $6, or $7 per gallon or higher being tossed about, it has been interesting to see how fast the price per gallon has plummeted to below $3.50 per gallon, and even more interesting that the predictions are that the price per gallon of regular gasoline will be less than $3 by the end of the next 30 days.

Some of the forecasters that have long term foresight have been issuing strong warnings that as the stock market and the economy get worse; the price of gas would go down.  People would not be able to afford to purchase it at the high prices during a severe economic downturn.  When the stock market is as volatile as it has been recently dropping between 500 and 800 points in one session and affecting global markets, there are definitely economic repercussions.  Europe is experiencing worry, fear and panic by its citizens because of the far-reaching effects of the economic problems.

Some of the only folks who might be experiencing a little extra relief are the auto dealers who sell large cars and trucks – and who have plenty sitting around because fuel was too high for people to purchase – or those who own large cars or trucks and were really feeling the pinch at the pump more than those with economical cars.

We are not out of the woods yet, and the economic and fuel crisis is not as simple as it may seem.  For now, we may be getting a break on gasoline, but keep your eyes peeled – there is more to this roller coaster ride than meets the eye.

It makes sense that in times of a fuel crisis where we are being told to conserve fuel by carpooling or riding the bus, ridership would go up.  On top of conserving fuel, some drivers simply cannot afford to drive their cars because of high fuel prices, so they are also using mass transit to get from one place to another.

Even this, however, is causing problems.  According to a U.S. Government report regarding rising fuel costs and the impact on mass transit, the majority of mass transit systems are experiencing an overflow that they cannot keep up with.

Because people are opting to use mass transit – especially buses – the system is overcrowded and can’t handle the number of individuals it now needs to serve.  One would think that because there are more riders, there is more revenue and, as a result, there could be extra buses on heavily used routes, especially during peak hours.

The issue is that fuel prices have increased for everyone, not just individuals.  Mass transit systems are paying much more for fuel than they had projected in their budgets.  Many cities, such as Denver, have had to eliminate various routes or scale back from ongoing service to service only once or twice per day.

American Public Transit Association (APTA) William Millar has stated that the “mass transit system in the United States is woefully underfunded.”  That, plus the skyrocketing costs of fuel has caused some cities to cut their routes more than once this year as well as increasing fares, in an effort to continue service.
Millar says that Congress needs to provide financial assistance to help the mass transit systems provide services for those who need it, and he says that Congress needs to do this “now, before the recess that will go into next year.” 

With ridership on the rise – in most cases as the only means of getting to work and maintaining employment – it is essential that these services are continued to avoid adding to the financial woes that the country is already in.  More unemployment will only increase the problems, and if people can’t get to work because there is no public transportation their unemployment is in jeopardy.

Hopefully Congress will hear Millar’s plea and help mass transit now before their fall session ends and leaves transit systems and their riders stranded until next year.

During the past year, fuel prices have shot up to hefty triple digits, making it impossible for many people to travel on vacations the way that they used to.  As a result, many are simply staying home. 

Add to this scenario the fact that jet fuel isn’t exactly inexpensive, so that puts the world’s airlines in a dilemma, as well.  They say they can’t lower ticket prices because they cant afford to.  However, because ticket prices are so high, travelers can’t afford to buy them.  As a result, airlines have been closing operations and many have gone out of business during the past year or two.  In fact, more airlines have gone out of business during the past year than after 9/11 when people were afraid to fly.

At least 26 airlines have gone out of business and nearly 200,000 jobs have been lost in the airline industry during the past year.  Airlines that had been hoping to hold on until fuel prices and other economic factors settled, could not hold on long enough and had to close their doors.

Some of the airlines are major international carriers, such as Alitalia, the Italian airline that has been a staple in travel to and from Italy for decades.  Part of the dichotomy is that travelers who could still afford to fly to their vacation destinations but cannot afford the fuel for a rental car to explore the destination once they arrive there.

There are ideas on the table about how to make things work and how to keep other airlines afloat.  Researchers are looking for ways to create biodiesel jet fuel and feel that it is a real possibility, but it will take time and money.

Meanwhile, the fuel situation in the world has forced us to look at the obvious problems and search for realistic solutions.  Researchers must look for alternative fuels, lawmakers must work with airlines, manufacturers and others to find ways to produce and distribute those fuels.  Individuals must do what they can to conserve.

It is important to note that when the world’s airlines are going out of business, this is no small crisis.  For now, if you want to fly on vacation, watch for specials, go on EBAY or one of the discount travel sites, find a good price, and go for it while you can!

This is a good question that has been asked in the 80’s during the last major fuel crisis, and is being asked in some places in the country now, during the current fuel crisis.  So what ever happened to the movement toward CNG as a good alternative to the usual gasoline?

Another good question.  During the 80’s, CNG was an idea whose time had come.  It began being used in many municipalities throughout the country to power mass transit vehicles, such as buses, as well as government employee vehicles and vehicles for many organizations throughout the country. 

At that time there was a push toward using CNG and there were fuel stations that began carrying CNG.  Automakers were beginning to create the double tanks needed to carry enough fuel to help cars travel long enough distances to make it worth their while. 

Once the fuel crisis of the 80’s ended and the hysteria died down, so did the interest in building the CNG supply.   Where there were once ideas regarding how to create more filling stations and how to make it feasible for even private individuals to have CNG tanks, there was simply no activity.  It was as though this was just forgotten.

Some municipalities continued to use CNG and still use it today for many of their vehicles.  Some continued to quietly develop CNG and look for the ways and means of distributing and using it.  As a result, there is still an interest in CNG as an alternative fuel.

With fuel prices topping $4 per gallon, which is much higher than it cost during the 1980’s and much higher than the $1.50 per gallon for CNG, interest is building continually.  Many of the ideas and plans being put forth for alternative fuels today include CNG.  It is readily available.  It burns clean.  It is cost effective.  It diminishes foreign oil dependence.  It eliminates the need for at least a portion of fossil fuels.

With all of these positives, even with the obstacles, CNG may be worth a second look.

There are a million things one might think of when they think of the fuel crisis.  Many of us think of higher prices for travel, higher prices for food, a four day work or school week with added hours each day, bills that are harder to pay, and other results of the issues we are having with fuel.

One thing that we might not have thought about – and I certainly have not, until now – is traveling carnivals.  Yes, these carnivals are being hit pretty hard because traveling carnivals need fuel for most of what they do.  Fuel is, of course absolutely necessary for the carnivals to actually travel.  A lot of fuel.  Many of the traveling carnivals drive by trucks that use diesel fuel – which has become very pricey lately. 

Traveling across regions, states and even the country, is expensive even without the fuel crisis to deal with.  Consider, though, the fact that food, lodging, fuel for rides and other costs have gone up accordingly. 

This has become enough of a problem for some carnivals to reduce the amounts of miles they have to travel.  They have cut out some of the cities they visit and they have decided to stay within smaller areas to contain costs.  They have also cut some of the rides they offer in an effort to save fuel and money.

This may seem like a frivolous issue when compared to the fuel crisis itself, issues with the economy, wars, politics and other problems, but it is not.  It shows that some of the things that we take for granted have been affected by high prices for fuel.  When we are at the point where the neighborhood carnival – a tradition that has rolled into towns across the country for decades – is diminishing, it is time to take note and try harder to fix some of the problems. 

If not, what’s next?  Will we end up losing the ice cream man, too?

Good news!  The cost of fuel has dropped during the past two weeks, and it is predicted that this trend will continue, at least in the short term.  This is great news for consumers, or is it?

Some economists are predicting that because of the drop in prices, there could end up being fuel shortages for short periods of time if the prices continue to fall.  The way that this would happen is that fuel retailers would maintain lower amounts of fuel stock waiting for prices per barrel to continue falling, rather than buying at the current price and having to sell the fuel at lower prices at the pump when the current price per barrel continues to fall.

In the meantime, there is a second half of this bizarre situation, which makes some sense from a business point of view.  The second half of the scenario is consumers.

As consumers see the prices fall, they will wait until the last minute to purchase fuel, and then fill up at the lowest price possible.  If the price drops significantly, consumers will possibly be in a rush to purchase while prices are down, creating the need for more fuel.  With fuel companies keeping their stock low and trying to buy in bulk at the lowest price possible so they can sell at a profit, and at the same time, consumers trying to purchase as much fuel as possible at the lowest current price, there could be a shortage created.

Economists feel that the shortages would be a day or two at a time and would not necessarily become a long-term situation, however, it could still lead to a lot of concern and possible chaos for both consumers and fuel retailers.

Even with the drop in prices, however, fuel will still remain expensive to purchase.  In addition, economists advise that to avoid a shortage in your personal situation, it might be good to spend the extra 2 cents per gallon and fill up your tank, not waiting for rock bottom prices to see what happens.

During the past couple of weeks, the soaring cost of fuel has gone down a bit from an average of around $4.50 per gallon to a little over or under $4.00 per gallon, depending upon where you live. 

Every little bit helps, so we are not complaining about the savings we are seeing lately.  However, there are predictions that fuel prices will begin to climb again, and that this climb may be steeper than the last.

This is a difficult situation to fathom.  When prices went near $3 per gallon, people were stunned, and when they went above $3 it really started to hurt consumers.  Now that we have been over $4 per gallon, it has not only hurt consumers at the pump, but created an economic mess in the United States and other countries, as well. 

The cost of fuel has affected the cost of food, clothing, air travel and just about everything else we can think of.  It has become overwhelming for many, and there is already great concern about what various areas will do about heat this winter, and what farmers will do to be able to afford fertilizer for their crops.

If this isn’t bad enough, there are news articles and reports coming out of everywhere stating that gas prices will continue to rise and could get to as high as $7 or $8 in the United States and $11 or $12 in Europe by early 2009. 

There is no way of knowing if these reports are based on anything but fear, however, it is certainly possible that fuel prices will continue to rise until a solution to the crisis is found.  The technology is available for creating and using alternative fuels, as well as creating other fuel and energy sources.  In addition, the idea of more drilling has been tossed about a lot lately. 

Regardless of what method or methods are used to deal with the fuel crisis, it is likely that prices will waver up and down until they finally level off, hopefully at a number that we can all find a way to live with somehow. 

In the meantime, lawmakers will keep going back and forth about the appropriate solution, and we will be keeping our eyes on the pump and watching how much we drive. 
 

The gas crunch is real and it is taking its toll on all of us.  That being said, there are some legitimate ways to make your fuel stretch and help your car get better mileage, such as keeping your tires inflated to the right pressure, keeping your car tuned up and your air filter and fuel filter clean, changing your oil as recommended and driving at the suggested speed limit.

The sad thing about the fuel crises is that – as often happens during difficult times – fakes and frauds are coming out of the woodwork to take advantage of people, and often, the people who are being taken advantage of are the people who can afford it the least. 

If you look anywhere on the internet you will find ads claiming that you can use water to supplement your fuel, turn it into hydrogen or oxyhydrogen and get incredible mileage.  The automobile club, AAA, says that there is absolutely no truth to this claim and that the kits on various sites – that are little more than a water jug with a hose attached, and cost anywhere from $150 to $1500 – are a waste of money.

Then there are other fake fixes, such as the offer to either lock your fuel price in at a certain amount (usually $2.49 to $2.99) or send you a free fuel card worth $1000 in fuel.  The real deal with these fake deals is that these are little more than spam sites who are trying to get your information so that they can bombard you with emails and phone calls to sell you everything from insurance to dental kits. 

The Better Business Bureau says not to fall for these scams and don’t give out your personal information.  You will be asked for phone numbers, addresses, birth dates and more.  In addition, you might be asked for your Social Security number, Driver’s License number and other numbers, such as bank and credit card account numbers.  Do not give this information out unless you have thoroughly checked out the site and the product and are able to verify that everything is legitimate.

In fact, there is a Norton Utilities program that will help you determine whether a site is a spam site or not.

With fuel prices that are already too high, this is no time to be tricked into spending even more money – especially on fraudulent items.  Be careful when you are looking for answers and make sure that they are real.  Report suspicious offers and sites.  Don’t be fooled by fake fuel fixes.

The high cost of fuel is no secret these days.  No matter where you are around the world, fuel prices are a tremendous issue.  Whether you are earning an average or above average income, the increased cost of fuel is having an effect on the way you live.  People are buying smaller, more economical vehicles and driving less.  They are carpooling more and many are changing jobs, opting for a lower salary closer to home so they can save fuel costs. 

When fuel started inching toward $3 per gallon, people were getting worried and upset.  Now that the price per gallon is over $4 per gallon, people are besides themselves worrying about how to make the dollars stretch.

The question is: What pushes the cost of fuel up so high?  The answer, in part, is subsidies.  The way subsidies work is that various countries such as Mexico, India and China subsidize their motor fuel.  What this does is encourage consumption of fuel and make the prices rise while the governments of those countries make up for the deficit at the pump for their consumers.  Research indicates that countries with subsidies accounted for over 95% of the increase in oil use around the world in 2007.  Because of this, prices rose to alarming levels, and in some countries like the United States, demand for oil fell because prices were allowed to rise.

Subsidies are a big factor in creating an imbalance between supply and demand of fuel, therefore pushing oil prices up and making it hard for consumers to afford it.  As a result, other parts of the energy and economic equation are affected, such as automobile sales – especially luxury cars and SUV’s.  These high-ticket items were often acquired by consumers who leased them from the automakers on long-term leases.  As the fuel crisis has deepened and the economy has changed automakers have taken huge losses due to these leases.  So deep, in fact, that Chrysler will no longer offer leases. 

In addition, individuals who have purchased these vehicles that consume a great deal of fuel have taken losses personally, as well, adding further to the economic problems resulting from the fuel crisis.   Adding all these factors together has created a situation that is creating a strain on individuals, families and entire countries.

While economists search for a solution, one thing is clear: fuel prices will not be going down in the near future and it is essential to continue looking for alternative sources of energy to replace or supplement subsidies.  We need to find ways to deal with the fuel crisis head on, eliminating or adjusting artificial fixes and developing real solutions now.

We have seen the effects of the fuel crisis on the airlines when they have been reducing services, charging extra for luggage – on a graduated scale by the bag.
Ticket prices are high and getting higher, and there seems to be no end in sight at this point.

If that was not enough, recently various airlines have talked about cutting costs by cutting employee rolls.  So, in addition to all the changes taking place to bring in more revenue, there are more changes by eliminating employees that could help with those suitcases that you are paying extra for.

More important than the luggage, though, is the fact that thousands of people will be losing their jobs.  The airlines are reeling because of the extreme rise in fuel costs coupled with the fact that people can’t afford to travel because of the expense involved.  As a result of these costs and others, jobs are being cut because of the crisis.

To demonstrate the severity of the fuel crisis, it is important to know that since the economy of one country affects another.  The airlines in the United States are having their difficulties and having to raise prices and cut some employees,

Sometimes it is important to put these issues into some sort of perspective, especially a global perspective.  Quantas Airlines, the largest airline in Australia, has announced that 100,000 employees very will be laid off.  This large of a number should help people see that this fuel crunch is serious.  It should show lawmakers and the public that it is absolutely time to come up with some viable solutions. 

Dealing with this issue as effectively and efficiently as possible is essential.  If we think globally and realize, as stated before, that the economies of one country or one industry are connected, we need to move forward now.  Ticket prices on airlines have gone up 21 times since winter.

With the cuts that Quantas plans, it is important to think about what companies in the United States will do.  For starters, by November 1st higher ticked prices will be issued again – about $100 higher per major flight.  It is expected that there will be about 10 more rate hikes this year.

It may be time for some local vacationing that includes hiking and biking. 

There are some things we can be sure of, even in this world full of surprises and unexpected events.   One of these things is that the sun will rise each morning.  That’s something we all depend on and know will happen, and that’s a good thing.  It helps us know that our world is still moving the way it should, regardless of all of the things that are happening on the planet or to the planet. 

Another thing we can count on – unfortunately – is that, like the sun, gas prices will continue to rise.  They have more than topped the $4 price just about everywhere in the country.  California is at the top of the list with gas prices at over $4.40 per gallon, with other states close on its heels.  The lowest prices are in Texas and several neighboring southern states, with the cost per gallon hovering between $3.68 and $4.00 per gallon.

This gas crisis has put a huge dent into vacation plans, employment location and more.  People are limiting the amount of “luxuries” they buy in order to offset the cost of gas.  Vacations are being cancelled – or at least postponed in hopes that the gas prices will be more affordable at a later date, or that the family can save up enough money to offset the cost of the furl they will need to get to where they are going.

Gas prices are affecting everything from food prices, vacations and jobs.  They have changed the way Americans – and countries throughout the world – do business, shop, run their homes and their lives.  Gas prices are quickly becoming one of the top election issues, with the average American looking for the government to solve this crisis.

Researchers are looking for – and finding – ways to use alternative energy sources, however, making changes that affect millions of people takes time. 
Maybe as the prices continue to rise, someone will come up with a solution to the problem – or at least some relief.

Until then, we will all have to figure out a way to deal with gas prices hovering around and average of $4.20 per gallon and the changes it causes in our lives.