Gas Prices Bring CPI Down And Threaten Climate
The Consumer Price Index rose a muted 2.3% in April, which was better than expected. Most items rose in price. The index was pulled down by a sharp drop in the cost of “energy commodities,” primarily gasoline. The price of gas fell 11.8%. It has gotten cheaper for the American driver to drive.
Among the benefits of cheaper gas for those who travel is that they can use their cars for less money. One sign of this is that AAA says a record number of people will travel by car over Memorial Day. This is “discretionary driving.” Daily driving activity to work, on errands, and to school is likely to go unchanged.
A gallon of regular gas was $3.61 a year ago. Today, the figure is $3.18. Oil prices have been plunging. They were $80 a year ago. Now, they are closer to $60.
What EPA Says
According to the EPA, transportation is the greatest contributor to greenhouse gas emissions in the US. It stands at 28%. “Cars, trucks, commercial aircraft, and railroads, among other sources, all contribute to transportation end-use sector emissions.”
Gas prices are also a factor in EV adoption. A spur in EV sales had been hoped to drop car emulsions sharply. However, the forecasts of huge adoption by 2030 are now dead.Â
Gas price drops favor the consumer and should increase discretionary spending. They also make America a larger polluter.
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