[Originally posted here, 12 July 2009, but not entirely out of date. Click on the image for a larger view.]

WHOA! 23¢ a gallon! And what a GREAT slogan.

Let’s talk about gas prices vs. inflation.
Inflation calculator: 1926-2009 = 1,108.2%

Price per Gallon in 1926 (regular, leaded): $0.23/gal
Federal Gasoline Tax (up to 1933): $0.01/gal = 4.55%
Actual cost per gallon (1926 dollars): $0.22/gal
Actual cost per gallon, less taxes (2009 dollars): $2.66/gal

Price per Gallon (regular unleaded) 10 July 2009: $2.90/gal
Federal Gasoline Tax 2009: $0.184/gal
California (Local + State + Fed Taxes) 6 July 2009:
$0.645/gal* = 2.9%

* Includes CA Sales Tax (7.25%) CA County & Local Sales Tax (1.25%), and UST tax (1.2%) whateverTF that is.

Actual cost per gallon, less taxes (July 2009): $2.26/gal**

**Note that the base price stated for California gasoline includes costs for state mandated fuel additives, summer/winter mixes, ethanol. Note also that this amount includes franchise fees, business license fees, miniscule profit by the small business folks, and Swantzenegger Boxer Feinswein Pelosi & Waxman fees, other “revenue enhancement fees” emanating from Sacramento, and costs for gettin’ the lead out.

[Sources found here and here.]

Now Let’s talk about mileage and cost and technology.

MILEAGE & COST

Say you’re in Washington D.C. and you want to drive to Little Rock Arkansas to have a chat with a former President at his library, Bubba’s Books. It’s a little over 1,000 miles away. Let’s also assume that all the roads are paved and level; no mountain passes or dirt roads to take. Lookee here.

1926 Ford Model T (1909-1927)

When production of the Model T began, the cost was around $850, around $1200 less than most cars. By the early 1920’s, the price of the Model T cost about $300.

(Cost $300 in 1920 dollars = $3,207 in 2009 dollars.)

22hp engine, no a/c, no electrical appurtenances, manual windshield wipers, manual crank start (risking a broken arm):
Top speed (level paved road): 30 mph
Gas mileage: 13-21 mpg
1K miles @ 30 mph (excluding stops): 1 day 9 hours 20 minutes.

Trip Cost in 2009 dollars:
1,ooo mi./21 mpg x ($2.66+$0.645 taxes)/gal = $157.62

2009 Ford Escape SUV – $20,515 (basic)

171 hp engine, electronic ignition, emission controls, a/c, electrical appurtenances, safety equipment;
Top speed: 100+? mph
Gas mileage: 20-28 mpg
1K miles @ 65 mph (excluding stops): 15 hours 23 minutes.

Trip Cost in 2009 dollars:
1,000 mi./24mpg x $2.90/gal (incl. taxes) = $120.83

Cool. 83 years later, a 1,000 mile roadtrip in an evil gas-hoggin’ SUV takes less than half the time and costs almost $40 less. Is this a Great Nation or what?

We have cheaper gasoline than at the dawn of the automotive era, and we’re able to drive farther, faster and more efficiently than ever. So what did Our President have to say about it?

Obama, touring a California electric car plant on Thursday, said, “The 1908 Model T _ think about this _ the 1908 Model T earned better gas mileage than the typical SUV in 2008… Think about that: 100 years later, and we’re getting worse gas mileage, not better, on SUVs,” Obama said.

Complete apples/basketballs non-sequitur.

Yeah it’s an Obama story that’s only 4 months old as of this post. My point is that gasoline is cheaper and of better quality now, and that automobiles are cheaper, more efficient, and safer than they’ve ever been in the history of the industry.

Wanna make gasoline EVEN cheaper, reduce oil imports, and employ more workers and give REAL stimulus to the US economy?

Let’s compete with OPEC by drilling in ANWR, the Gulf of Mexico, Atlantic & Pacific Oceans, and refurbish and build more refineries. Then we can buy PEMEX, too, and help resolve some of Mexico’s financial problems.

It’s my opinion and it’s very very true.