Gas prices take bigger bite of Americans' income

Americans are pumping about 4% of their incomes into buying gasoline, according to a government report.

The Energy Department said on Monday that U.S. households spent an average of $2,912 on gasoline last year, the highest level in four years.

The percentage reached similar levels in 2008, when a red-hot global economy and panic over dwindling supplies sent gas prices through the roof. But before then, the percentage hadn't reached these levels in nearly three decades.

Another report put out by the Oil Price Information Service showed that Americans spent a record $479 billion in gasoline last year, up from $471 billion a year earlier. This is more than two and a half times what the nation's annual fuel bill was ten years earlier.

Even though Americans are spending more money -- and a bigger chunk of their budgets -- on fuel, overall, the Energy Department said that Americans are actually buying less gasoline than they have in the past. That's because Americans are heading to the pumps less often as cars become more fuel efficient. Read more >>

Tapping Oil Reserve Still Won't Lower Gas Prices Below $3

Image via WikipediaGasoline prices should drop more quickly now that governments are stepping in to pump up world oil supplies, but drivers are still unlikely to see last summer's levels below $3 a gallon.

Energy market experts are also concerned that the message from the International Energy Agency and U.S. Department of Energy release of 60 million barrels of reserves is that the global economy is weaker than believed.

"The good news is the consumer will see cheaper prices at the pump. I think we could start ticking under $3.50," said Andrew Lipow, president of Lipow Oil Associates. The national average for gasoline is $3.61 per gallon, according to AAA.

Gasoline prices have been been falling, from a high of $3.98 nationally in mid-May.

"I think we were headed lower mostly because of economic softness," said Tom Kloza, chief oil analyst at OPIS. "I believe this will hasten some declines, and I still think that $3.25 to $3.75 is the likely summer 2011 range. I do think you'll see some of the cheaper places get close to $3."

Gasoline prices a year ago averaged $2.74 a gallon, according to AAA. More...

US Govt - "Cash for Appliances" This Fall

Christine Selk with the Oregonian reports:

Inspired by the success of the "Cash for Clunkers" program, the U.S. Department of Energy will launch a "Cash for Appliances" program this fall.

The program will provide nearly $300 million in stimulus funds from the American Recovery and Reinvestment Act to consumers who buy new, energy-efficient kitchen appliances.

"These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs," Energy Secretary Steven Chu says.

This new rebate program is in addition to a number of U.S. tax credits on energy-efficient products for homes introduced earlier this year. This includes many gas, oil, electric and solar water heaters, which are reimbursed at 30 percent of their purchase price up to $1,500. Many energy-efficient windows, skylights, exterior doors, insulation and HVAC systems are also eligible for a 30 percent tax credit, up to $1,500 per home. (This $1,500 limit is the total for all credits applied to the home across all categories of eligible products).