If businesses in your area depend on the summer tourist trade or if you take an annual family vacation, you are probably concerned about higher gasoline prices. Gasoline is approaching $4.00 per gallon. Prices at the pump are forecast to be even higher this summer. How much will rising gasoline prices affect the cost of that summer vacation? Let’s see.
A round trip from Madison to Minocqua is about 430 miles. Add a few miles for trips to the grocery store or Lake of the Torches and the total is more likely to approach 500 miles. How much more will you spend on a 500 mile trip with gas at $4.00 than two years ago when gas was $2.57 per gallon?
ANSWER D. $38
This presumes your car averages 22.6 miles per gallon. At 30 MPG, the increased cost will be $29. At 15 MPG, you will spend $57 more on gas than you did in 2009 for the same trip.
Sources: U.S. Energy Information Administration and U.S. Bureau of Transportation Statistics
The U.S. Bureau of Transportation Statistics provides good data on average MPG for a variety of vehicles. The U.S. Energy Information Administration is a another good source for a wide variety of energy data.
For questions, contact Bill Pinkovitz