Barry Ritholtz posted a great graphic showing “Price of full tank of gasoline (60 l)
as a percentage of average monthly net salary”.
https://pbs.twimg.com/media/FOIM6BIVQAcmK9W?format=jpg&n…
You can also see the graphic at this link along with a bunch of links to interesting stories.
https://ritholtz.com/2022/03/10-friday-am-reads-357/
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Barry Ritholtz posted a great graphic showing "Price of full tank of gasoline (60 l)
as a percentage of average monthly net salary".
Depending on which province we have either two or three layers of tax on our gas. Nova Scotia’s provincial government adds a street maintenance tax that gets shared with the municipalities.
I actually topped off the Micra yesterday for the first time in ~ six weeks. It was still half full but I happened to be driving by my favorite gas station owned by an oil production company that I happen to have in my port. By using my RBC card I get 3 cents off per liter.
Anymouse … bit of a cheap plick at times but I did tip the Chinese lady who cut my hair $5. She wore a mask the whole time and managed to work around mine. }};-D
TSX has Outperformed Global Markets over the past year.
Barry Ritholtz posted a great graphic showing “Price of full tank of gasoline (60 l) as a percentage of average monthly net salary”.
Great graphic!
I do wonder what date was used to calculate the percentages? This week, last week, last year? Could it be that with the escalation of gas prices in recent weeks that the percentage of monthly salary may have gone from 1.55% all the way up to 1.82% or something?
Pete
Another chart on this topic:
https://www.advisorperspectives.com/commentaries/2022/03/11/…
For a 20-gallon vehicle that requires a single fill per week, consumers need to set a weekly budget of $70 in today’s environment. Relative to the average American’s weekly income, $70 equates to about 6 percent of pay. In March 2012, the price of gas was $0.50 lower, and the cost to fill a 20-gallon tank was $60 instead of $70; however, incomes 10 years ago were also lower. In order to make a true assessment of where things stand today, we need to understand the ratio of gasoline prices to incomes over time.
…
It turns out that consumers needed to set aside a larger portion of their weekly wages to fill a tank of gas in 2012 than they do today (assuming mileage driven is the same). Ten years ago, consumers had to set aside a budget of almost 10 percent of weekly pay, while today it’s only 6 percent. It may feel like a tank fill-up is taking a larger bite out of budgets than ever before (as the headlines suggest), but the reality is we’re right around the 20-year average of gasoline prices relative to incomes.
The article goes on to discuss how much more fuel efficient cars are today so we get more out of each gallon of gas than we did 10 years ago.
For a 20-gallon vehicle that requires a single fill per week, consumers need to set a weekly budget of $70 in today’s environment.
It has been a few decades since I’ve driven a car with a tank that large, and there’s been only one RV park I’ve stayed in for extended periods where I needed to fill the tank weekly.
(Now my motorhome, when we’re on the move… $70? I wish! )
“For a 20-gallon vehicle that requires a single fill per week, consumers need to set a weekly budget of $70 in today’s environment.”
At $4.50/gal (national average) that $70 would get you about 8 gal. If you car got 20 mpg, that would be 160 miles a week. If you got 30 mpg, 240 miles a week.
Other than ‘work vehicles’ how many drive that many miles a week?
Of course, if you drive a 4 wheel drive large V8 pickup truck getting 11 mpg…it’s going to hurt.
My Malibu gets mid 20s around town, 28-29 on the road.
the Prius gets 40-43 mpg/gallon. I fill it up once a month.
Yeah, too many got lulled into a sense of big SUVs that gobble gas when gas was less. Now it hurts a bit. Lots of pickup trucks in TX and they don’t do well mileage wise. The big ones get horrible gas mileage.
t.
Oops…
“At $4.50/gal (national average) that $70 would get you about 8 gal. If you car got 20 mpg, that would be 160 miles a week. If you got 30 mpg, 240 miles a week.”
Well, it would get you 16 gallons…good for 320 miles or 480 miles a month…If you fill up once a month…
Then again, cars with 20 gallon gas tanks probably get 16 mpg…
Depends upon how many miles a month you drive.
$70/month is just over 2 bucks a day. Most people probably blow that much on junk food, snacks, eating out, Starbucks, etc.
I put 7-9 gallons a month in the Prius…for 100 miles a week.
t.
This is interesting, but the average American doesn’t care about the rest of the world. They don’t even care about their own price of gas a few years ago, which was similar to today’s price in 2008 and from 2010 - 2014.
https://fred.stlouisfed.org/series/GASREGW
No, what the average consumer looks at is how the price rose over the past 2 years (ignoring the Covid lockdowns which suppressed the demand for gas).
This causes the CPI-U to rise, which pressures the Federal Reserve to increase interest rates. (Part of their mandate is to control inflation.)
As investors, we have to be aware that a Fed tightening phase is almost always followed by a recession since consumers and companies find borrowing more expensive.
Higher interest rates depress demand for stocks because investors have safer alternative sources of income when bonds yield a reasonable amount.
The Fed has said they are trying to return to a “neutral” stance. That is 2% above the rate of inflation on the 10 year Treasury. Right now, the yield from the 10YT is -0.9% BELOW inflation. Imagine the impact of raising interest rates (including mortgage rates) 3% over what they are now.
https://home.treasury.gov/resource-center/data-chart-center/…
Putting gas prices into perspective: The Macroeconomic impact will be economy-wide when the Fed raises interest rates. The impact on us as investors can be negative if we are not careful.
Wendy
The western Europeans are basically paying the same percentage then taxes are added. Western Europe is using less per capita than the US.
TSX has Outperformed Global Markets over the past year.
This’ll save some people from having to look up TSX.
https://www.bing.com/search?q=TSX&search=&form=QBLH&…
Desert (CVX, XOM, T, BNS, BKH, ED, ATGFF, NI, NWN, TRP, ENB, WRE, WGL, XEL, DUK, SO & KO) Dave
Yeah, too many got lulled into a sense of big SUVs that gobble gas when gas was less. Now it hurts a bit. Lots of pickup trucks in TX and they don’t do well mileage wise. The big ones get horrible gas mileage.
IIRC we go through this version of the “peak oil” discussion every few years.
It’s no big deal for me. I just fill up our vehicles as needed (I try not to let the gas tanks go below 1/2) at the local Costco 'cause Costco almost always has the lowest gas prices in town.
The price of gasoline is meaningless to me as it should be to y’all. It is, after all, the price of doing business.