4 ms·
The rule of thumb is that for every penny of gas price at the pump, averaged over the year, it takes $1 billion of consumer spending. So if the gas prices drop
by shrubble 11mo ago
The rule of thumb is that for every penny of gas price at the pump, averaged over the year, it takes $1 billion of consumer spending.
So if the gas prices drop by say 20 cents per gallon vs last year, that’s $20 billion more dollars in consumer pockets that can be spent elsewhere.
- downrightmike 11mo agoSo oil dropping is like reverse tariffs
- alephnerd 11mo agoThat's why China, India, and Vietnam have continued to purchase Russian oil, even if resorting to barter agreements such as Vietnam's procurement of the SU-35 [0] and India's agreement for a JV to domestically manufacture the SJ-100 [1] (which also helps their French partner Safran recoup costs, as Safran is part of India's domestic jet engine program and was a partner in the SJ-100 project before sanctions began). And it's not like Asian countries are purchasing less from other sources either - they're just using the Russian barter to force MFN deals and discounts from other suppliers. [0] - https://defencesecurityasia.com/en/vietnam-russia-su35-fighter-deal-leak-south-china-sea/ https://defencesecurityasia.com/en/vietnam-russia-su35-fight... [1] - https://www.reuters.com/world/india/india-signs-pact-with-sanctioned-russian-firm-build-civil-aircraft-2025-10-28/ https://www.reuters.com/world/india/india-signs-pact-with-sa...
- eulgro 11mo agoUh. So we should jack up prices to reduce consumption elsewhere. That will reduce oil consumption and every other consumption at the same time, it's an environmental win-win.