Reports are coming in that the United States is paying upwards of $400 per gallon of fuel delivered to troops on the ground, that’s a whooping 100 times more than we pay.

Of course that’s not the cost of fuel by itself. The high rate of gas price there includes the cost of having it delivered to the US ground military operations in Afghanistan, which is by parachute. That’s right, huge Air Force cargo planes drop dozens of pallets on the ground in a remote drop zone containing food, water and of course fuel. Almost seems like a scene right out of Lost huh?

And it appears that it won’t be getting any cheaper for the military as more and more air drops will be occurring now that ground-based supply convoys are becoming more dangerous to setup.

Check out the Wall Street Journal report video after the break.

[Source: Autoblog]

The American Petroleum Institute has reported that total petroleum deliveries fell by 0.5 percent in July, compared to the same month one year ago. This was the first time deliveries have decreased for any month this year. As well, gasoline demand hit a ten-year low for the month of July.

John Felmy, API chief economist, said, “The numbers, though mixed, confirm continuing weakness in the economy. Consumers aren’t spending, and jobless claims have increased, so it isn’t surprising gasoline demand was down and overall demand slipped a bit”. It was also interesting that U.S refinery production of gas decreased for the first time in 2011, down by 2.3 percent from July 2010. However, on a year-to-date basis, gasoline production remains on par to set a record.

Galpin Auto Sports, also known as GAS, has been building some of the industry’s wildest Ford Mustangs since it opened shop. The tuner’s newest project is a collaboration with specialty manufacturer SPX, and will be a 1969 Mustang Boss 429-inspired ‘Stang featuring 700-hp, Candy Apple Red Pearl paint, a custom one-off metal widebody and Forgiato three-piece wheels. The completed project will be auctioned off at the 2012 Barrett-Jackson auction in Scottsdale, Arizona with the proceeds benefiting St. Jude Hospital to fight cancer.

With everything going towards a good cause, the fortunate one to win the Mustang will get themselves one hell of a machine. The 5.0L V8 will be a whole new monster thanks to Ford Racing’s supercharger, camshafts from Comp Cams and a Bassani exhaust system. All 700-hp will feel nice and snappy through the transmission thanks to a Hurst short-throw shifter while the Eibach lowering springs give the Mustang better handling and a nicer stance. Speaking of stance, GAS will be outfitting the one-off custom with a staggered set of 21-inch (front) and 22-inch (rear) Forgiato wheels, wrapped with Pirelli P-Zero rubber. Peeking behind each custom three-piece wheel will be a set of Wilwood 14-inch rotors, with 6-piston calipers in the front and 4-piston calipers in the rear.

On the outside, the Candy Apple Red Pearl PPG paint will be accented by the previously mentioned one-off metal widebody. A Roush billet aluminum grille will give the front end a bolder look while the original 1969 Boss 429 hood scoop pays homage to a true classic. For the rear, a Boss 302 Laguna Seca rear spoiler will be added.

Once it’s completed the car will tour several shows across the country, including the 2011 SEMA Show.

Wal-Mart is rolling back gas prices just in time for the Fourth of July driving weekend. The retailer is offering ten cents off a gallon at Wal-Mart and Murphy USA stations if purchased with a reloadable Wal-Mart gift card, MoneyCard or a Wal-Mart credit card.

The discount gas is available until September 30th, but is limited to only 18 states. Americans feel very strongly about having cheaper gas which has become apparent with fuel becoming a budget concern just like household and grocery items in homes across the country.

“Our customers have told us that high gas prices are a top budget concern, nearly as large an expense to their households as food and groceries,” said Stephen Quinn, chief marketing officer. “We listen to our customers and because we know they are feeling squeezed by gas prices, we’re implementing this gas [price] rollback to help them save, especially during high travel summer months.”

Wal-Mart will be discounting gas in the following states: Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Mexico, North Carolina, Ohio, South Carolina, Tennessee, Texas and Virginia.

[Source: USA Today]

According to the latest Kelley Blue Book survey regarding gas prices, new cars and used cars, consumers feel gas prices will improve.

In a recent May 2011 survey by KBB, more than half of car shoppers (52 percent) say they think gas prices will either stay the same or go down in the next 30 days. As well, consumers that said gas prices would affect their choice of vehicle  has decreased by five percent from April (35%) to May (30%).

“Prices at the pump have halted their steep rise and now gas prices are slowly going down in many parts of the country, and the latest kbb.com survey results show that car shoppers are taking note,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com.  “If consumers feel more optimistic about the near-future state of gas prices and more confident in their personal economic situations, this will bode well for the automotive industry, though declining home values present a continuing concern.  Vehicle availability issues caused by the Japanese earthquake and tsunami also could blunt gains to be expected from increased car-buyer confidence.”

[Source: Kelley Blue Book]

There’s a good chance that wherever you live, it’s been $4 a gallon-plus for some time now, but according to the newest Lundberg Survey, the national average for a gallon of gas has hit the magically awful $4 a gallon mark. Gas hasn’t been this expensive since the summer of 2008.

The latest numbers show that the cheapest gas found in any major metro area is in Tucson at just $3.62 per gallon. The most expensive? that would be Chicago, where the price is around $4.50 a gallon and has been over the $4 mark since April.

And there is likely more bad news coming for commuters, with the Memorial Day long weekend, the start of the summer driving rush, still three weeks away.

Just a year ago, gas averaged out at $2,80.

[Source: HybridCars]

An old finance maxim states that “by the time you’ve read about it, it’s already too late”, but that hasn’t stopped used car dealers from eagerly snapping up any 4-cylinder or hybrid vehicle as gas prices continue to climb.

With one dealer calling the sudden trend a “panic”, values of previously undesirable cars like the Chevrolet HHR have shot up to $11,000 from the $8,000 or $8,500 they previously commanded.

In an interview with Automotive News, a NADA guides official stated that prices for these types of cars will probably rise between 3 and 4 percent above what the NADA guides state, while SUV and truck prices are set to fall. However, NADA is not set to alter their residual values, in part because they feel that any major spike in gas prices will last for three years, roughly the same term as most leases.

[Source: Automotive News]

Ford‘s strategy involving smaller cars priced at a premium will become even more important if gasoline rises beyond $4 gallon, said Ford of the Americans President Mark Fields.

“There is a natural kind of water level that if a gallon of gas goes over, that may shift the market mentality,” Fields told Automotive News. ”When it starts getting over $4 a gallon or gets to triple digits when you fill up your tank, that catches people’s attention.” Gasoline prices are currently at a national average of $3.55 per gallon, and global unrest means that they are likely to keep rising.

The Focus in particular represents Ford’s new premium small car strategy, with high end models costing as much as $29,000, while still achieving 40 mpg on the highway. But with more than 80 percent of its parts shared in common with global variants (and expected worldwide sales of 2 million per year in 2012), the Focus could prove to be an extremely profitable car for the company.

[Source: Automotive News]

Those of you buying or selling a used car now have another weapon at your disposal during your hunt for the perfect clunker. The EPA is offering window stickers for a all kinds of used cars that give estimates of a vehicle’s fuel economy, so buyers and sellers can advertise (or obfuscate) how much gasoline their car consumes.

The figures are based on revised EPA ratings, which came into effect in 2008. The window stickers also come with a QR code (that strange looking bit of black and white squares) so you can scan it with a smartphone and get details digitally. The new figures are supposed to accurately reflect a vehicle’s true fuel economy, and we experimented with a 1997 Mazda Miata, which was at one point rated at 18/25mpg for city and highway driving. The new figures show 20/26 mpg, a slight bump in both areas, but still relatively poor for such a small 4-cylinder vehicle. For comparison, a 2011 model gets 21/28 mpg on the highway. You can satiate your own curiosity here, and find out what kind of rating your own vehicle will get. Be sure to let us known in the comments.

[Source: Fueleconomy.gov]

With oil passing the $100/barrel mark on Thursday, analysts are warning that a gallon of gasoline could soon cost as much as $5 this summer.

“If this thing escalates and there’s a good chance that there’d be a shift in supplies, $5 gas isn’t out of the question,” said Darin Newsom, an analyst at energy firm DTN told USA Today.

With major oil companies pulling out of Libya, the 15th largest crude oil exporter in the world, oil futures contracts are trading at levels not seen since October of 2008. While countries like Saudi Arabia could theoretically pick up the slack, the disruptions will still cause a spike in prices. Other factors like increased demand as the weather warms up, and the constantly increasing demand from China, could see average gas prices continue to rise.

[Source: USA Today]