04/21/2008

Summer Fuel Price Projections or The Return of the Busman's Holiday

Hello:

As a youngster in the '70's, my mother, frustrated by long lines for gasoline, decided we were to embark on a summer vacation she had come to know during the Great Depression: the Busman's Holiday. The Busman, now bus driver, drove 40 hours a week, and so did not want to drive much on vacation. This vacation translated into to calling our home "Vacation Villa", and playing tourist in our home town. Dad took time off from work, and we enjoyed many activities that did not include hours of boring drives, waiting in long gas lines and paying (horrors!) over $1 per gallon of gas.

Now that gas is settling in at over $4 per gallon, I am busily trying to convince my family of the joys of the Busman's Holiday. Maybe these projections from the 2008 Summer Transportation Fuels Outlook as released by the Energy Information Administration (www.eia.doe.gov) earlier this month will help convince them. To wit:

    * Growing World Oil demand outside the United States continues to keep crude oil prices high

    * Crude oil expected to remain near $100/barrel for the rest of 2008  [on average]

    * Gasoline prices are expected to average $3.54 per gallon [up 60 cents from July 2007] over this summer: Diesel prices expected to average $3.73 per gallon [up 88 cents from July 2007].

    * Market uncertainties are many and may significantly impact prices and supplies during the rest of 2009

    * Net barrels of oil imported expected to drop by 9% [!]

    * Net motor gasoline consumption to drop by 4/10% domestically and to rise internationally

That does not sound good for summer driving. Or we could just take a plane.....er, maybe not. Well, there's always AMTRAK.

Now that taxes are done, and your files are still in easy reach, consider getting your financial plan started sooner rather than later. Please let us know how we may be of assistance!

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager