The consistent drop in fuel prices since late last summer 2014 hasn’t gone unnoticed by anyone, and for those of us in the great northwest there is no exception. Watching the prices dip just under $2.00 a gallon in some spots has left us smug with that feeling of savings and frugality as we drive away from the pump, the high costs of the past summer just a memory by now. For the first time since 2009 the cost of a gallon of gas is cheaper than that of a bottle of water (a gallon of store-bought water averaged $2.20/gallon versus $1.68/gallon for gas)! No, we are not suggesting that you switch up your beverage of choice, let’s just take a  quick look at the numbers:

Average cost of 1 gallon of gas in the United States – $2.07/gallon
Average cost of 1 gallon of gas in Oregon – in many places less than $2.00/gallon
Average cost of 1 gallon of water in the United States – $1.79/gallon

What does this mean? This means that there has been an increase in both domestic and OPEC production. “Any time you’re able to compare gas prices to water, it’s a very unique situation,” said Allison Mac, a petroleum analyst for GasBuddy.com. Granted, there are many different grades and qualities of bottled water, many of the imported ones are over $4.00/gallon. So we must also consider the marketing psychology of bottled water, where consumers decide what the buy based also on packaging, labels, colors, perceived benefit of drinking a certain brand and so many others.

“Even factoring in production costs (including gasoline to transport the product), Fisher added, ‘the actual cost of bottled water is half the retail cost – there’s at least a 100 percent markup.’ And what’s the relative value to consumers? A gallon of gasoline can move a 2,000-pound car 40 miles, Fisher said. A gallon of water might not keep a 150-pound human going for the same distance. ‘Think about the amount of work necessary to produce a gallon of gasoline – bringing up that black sludge, refining it, shipping it in crazy huge quantities — and the mount of economic value packed into a gallon,’ Fisher said. ‘It’s much higher than the work required or the economic value of a gallon of bottle water,’ he said.” – Oregon Live

With spring and summer around the corner gas prices should start to inch upwards as people begin traveling more and oil companies switch over to a different blend. The good news, experts say, is that gas is barely expected to touch $3.00/gallon at its high point this year. What does this mean for you? It means now it the time to explore, take that road trip you’ve been thinking about or move to the country now that you can afford that extra commute! For the full article please visit Oregon Live

Source: Oregon Live