Link Banana

The reality of the price at the pump against the price of a barrel:

Analyses of gasoline economics show that when the price of oil rises, it takes up to four weeks for gas station prices to catch up, with most of the increase taking place within the first two weeks. But when oil prices sink, it takes up to eight weeks for the savings to be passed along to consumers. The phenomenon is known as “asymmetric price adjustment” (PDF) or, more informally, “rockets and feathers.”

It’s a pretty well-understood truth that public perception of the economy’s welfare is disproportionately focused on the price we pay to fuel our cars. Dan Ariely’s recent op-ed explores why:

For the several minutes that I stand at the pump, all I do is stare at the growing total on the meter — there is nothing else to do. And I have time to remember how much it cost a year ago, two years ago and even six years ago.

Yet I have no such memory about the prices of items in any other category. I have no idea how much milk was six years ago, how much bread was three years ago or how much yogurt was a week ago. But I suspect that if I stood next to the yogurt case in the supermarket for five minutes every week with nothing to do but stare at the price, I would also know how much it has gone up — and I might become outraged when yogurt passed the $2 mark.

Another odd thing about the way we buy gasoline is that we usually buy multiple units. I just bought 13 gallons for a little more than $55. The sticker shock isn’t as intense when I see the price per gallon as it is when I’m faced with the total cost. Fifty-five dollars! I remember when I filled my tank for $20 and $25 and $30! Maybe if we bought 13 loaves of bread at a time or 15 gallons of milk we might become just as sensitive to how much we spend on those items.

This rerun is a great reason to love The Onion.

Pictures of abandoned filling stations.

Everyone knows the role of supply and demand, but this Explainer column offers a number of interesting factors that make for differences is price both across states and within them. One of the many things I hadn’t considered:

Retail gas prices can vary depending on state and local environmental requirements. Urban areas with particularly dirty air are required by federal law to sell “reformulated gas” for all or part of the year, and because the cleaner-burning fuel is refined through a special process, it tends to be a little more expensive than regular gas.

Nothing in this table about the cost of driving different vehicles should surprise you, but the presentation’s rather clever.

In a thorough summary of the basics of hybrid auto technology, The Economist’s Tech.view column sees a future that may favor less-efficient (but cheaper) mild hybrids over “stronger” ones like the Prius.

The complexity and cost of such drive-trains has made many in the industry think twice about strong hybrids. Mild hybrids like Honda’s may offer only modest fuel savings, but they are considerably cheaper to make. Selling for less than a Toyota Prius, the new mild-hybrid version of the Chevrolet Malibu has been a runaway success, despite having only 2mpg better fuel economy than a conventional Malibu.

In case you’re not sold on the idea that there are upsides to high gasoline prices, I recommend this article.

(via GOOD)

Short answer: no. Slightly longer answer:

Virtually no fuel is wasted during startup, and only a thimbleful is burned as the car roars to life. So forget about the 30-minute axiom you were raised on—the threshold at which it makes more sense to shut off rather than to idle should be expressed in seconds, not minutes.

A lot of environmental organizations advocate the 10-second rule: If you’re going to be stopped for more than 10 seconds, it’s best to shut off your engine.

Firm evidence that high gas prices really make people think more and drive less.

At 11 billion miles less in March 2008 than in the previous March, this is the sharpest yearly drop for any month in FHWA history.

(via Marginal Revolution)

A refrain that merits repetition:

The simple truth is that Americans are going to have to get used to more expensive gasoline. And while they may continue grumbling at the pump, they need to accept the fact that even at $3.50 or $4 per gallon, the fuel they are buying is still a bargain.

This isn’t so much news as a reminder of long established facts. Americans can love driving far more than anyone else because gasoline here is so much cheaper than anywhere else.