T&T: Diesel fuel future costs

[Dave Cooper]

This response if to the list as I've had many private responses I thought
the list should get my response.

<"I remember when we had a cow over gasoline hitting $1.00 a gallon! "OK,
everybody get a horse... we can't afford gas any more.">

The early rise in gasoline/diesel prices happened over a 10+ year to go from
the 30/40 cents a gallon to a dollar. That's an inflation rate of about 7% a
year. From 1974 to 2004 it has been less than 3%.
Since 2005 it is running 20% and it looks to be at or near 50% a year for
the in the near term so I'd say that the rate of inflation of fuel is
rapidly increasing.
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

The pinch will be felt much more so than in milk, groceries, etc. Look at
the breakdown of the CPI, Energy costs are the leading inflationary
component not food, for now.

<"But I hate to say it but even if it hits five dollars a gallon
we'll be going, although in a different manner then we have in the past.">

Keeping to the subject of trawlering I'm not sure that a season of boating
will be affordable if the fuel is $5000 or more even for a lousy 1000
gallons. This fuel cost is already competing for the additional energy $$$
you're spending to fuel the car/truck, heat your home, etc. Many of us only
have so much to go around ;-)

<"One thing for sure... it seems like the more the price of fuel goes up,
the more my single engine trawler is worth">

I think this present inflation cycle is much faster and will have a far
greater impact on boating. The recent trend of trawlers to "appreciate" is
going to be a short lived bubble, IMHO.

As always YMMV.....and I hope it is better than mine ;-)

Dave & Nancy
Swan Song
Roughwater 58