Gas Prices Go Crazy 3

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.

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3 thoughts on “Gas Prices Go Crazy

  • Julie Davis

    It’s $4.25 a gallon here now.
    That “gas at $2.99” ad really cracks me up when I see it because, as you mention, it really is not that much of a savings when compared to the cost of the car/truck unless gas keeps climbing a cent a day…then eventually it may turn out to be a huge savings especially if the purchaser uses the maximum gallons or miles. The average mileage driven by an American is about 13,000 a year, so it should not be hard for most people to hit the max. Say the truck gets 17 mpg and the gas climbs to $7 a gallon in a year, as some predict, then the max user would get 12,000 miles/17 mpg x $4 a gallon savings = $3058 a year. That would be $254 a month savings…not bad. Maybe Chrysler would fold!

    The main thing that it makes me laugh at is that it could be seen as negative advertising…advertising that actually decreases sales. To me it just points out that the car/truck is a gas hog.