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Despite gas prices declining as 2013 came to a close, 2014 has started out with the highest price on record for the start of the year.
For three straight weeks, the average gas price in North America has been dropping and it is expected to continue in months to come.
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.
The Automotive Leasing Guide is what the auto industry uses to determine residual values for leased vehicles. It’s a pretty important guideline, and when the ALG speaks, people listen. So the ALG’s prediction of gasoline at $4.13 a gallon by 2013 has some pretty big ramifications for consumers and their vehicle choices.
Naturally, the ALG is predicting an increase in residuals for compact and hybrid cars. While compacts and hybrids should see a residual jump of nearly 10%, the big losers will be full-size SUVs, which should take a 7.4% hit in residual value. The same price fluctuations apply to wholesale values as well, with compacts and hybrids expected to bring 30% more at auction, while the same big trucks will go for 20% less.
Before anyone panics, let’s not forget that Canada has endured prices very close to $4/gallon for a few years now, and their vehicle makeup, while similar to the United States, skews more towards compact cars. While the best selling cars in America in 2009 were the Toyota Camry and Honda Accord, Canada’s favorites were the Honda Civic, Toyota Corolla and Mazda3 respectively. Bet that Civic Hybrid is looking like a good buy now, isn’t it?
[Source: Autoblog Green]