Gas Prices Go Crazy

By Ben

While driving to work this morning, I was stopped at a red light next to a Mobile station. As I looked out of my car window, much to my dismay, there was a Mobile attendant changing the advertised price of gas to $3.74 for one gallon of regular gasoline.

As I contemplated how oil companies could charge upwards of $120 a barrel, I wondered why our government has not taken a firm stance to help keep costs down. After all, the cost of oil doesn’t just affect how much we pay at the pump – it affects everything from the price of groceries to our electric bills.

While our presidential candidates debate the gas tax holiday, one company has launched a marketing initiative gimmick to help consumers control their gas prices. Chrysler introduced the ‘Let’s Refuel America’ campaign, in which new Chrysler owners will ‘only’ have to pay $2.99/gallon at the pump. The program covers gas costs for three years, and up to a maximum number of gallons. BusinessWeek has the details:

The customer who opts for the $2.99 card gets charged the going rate at the pump, but their credit card statement will only bill them for $2.99 a gallon, for regular gas ($3.29 for premium). Chrysler will pay the difference. The deal is limited to 12,000 miles a year for three years.

Although the actual savings from this offer won’t be seen for three years, early estimates predict savings will be just under $500 for the three years. The Associated Press reported that Chrysler’s major competitors (Ford, Toyota GM, and Honda) said they aren’t planning to follow Chrysler’s lead, but Suzuki has made a similar offer in the U.S. with free gas for the summer.

3 comments May 7th, 2008