Good News About Gas Prices

by Ed Newman
AMSOIL Marketing & Advertising Manager
This article appeared in National Oil & Lube News, July 2005

It doesn't take long to find out what's on people's minds these days. A quick search of the News button on Google will bring up links to all the news stories on any topic over the past thirty days. In the past month there were nearly 22,000 articles on gas prices.

When it comes to gas prices I don't know who is more confused, motorists or the media. As of May 24, the news is mixed depending upon whom you listen to. A Louisville, Kentucky story carries the headline, "Gas prices rise again," and a Marietta Times (Ohio) headline counters, "Gas prices fall, but consumers still frustrated."

Now just how frustrated are consumers? It depends again on where you read your news. A New Orleans story carries this headline: "Consumers cut spending as gas prices rise." The article cites a study by the National Retail Federation. A survey of 8000 adults indicated that over 16% were delaying a major purchase such as a car or furniture, 25% reduced their dining out, 31% decreased vacation travel and 35% said high gas prices would affect their upcoming Memorial Day plans.

But hold on a minute. A headline in the Terre Haute Tribune-Star says that "Despite complaints about rising gas prices, sales show drivers aren't altering lifestyles." The John Chambers article begins, "Whether or not consumers complain, many say higher gasoline costs aren't making much difference in the way they drive." And a spokesperson for the AAA Hoosier Motor Club was quoted as saying, "people have not changed their driving habits at all."

Evidently the verdict is still out. Gas prices are going up, or they are not. People are changing their lifestyles, or they are not.

One thing is certain, gas prices are higher than they were last year. An MSN Money story on Mar 23, 2004 expressed alarm when average gas prices at the pump reached the all-time high of $1.73 a gallon. At the time they were calling it "ingredients for a gas crisis." Little did they know that prices this spring would average more than $2.22 a gallon, with prices hitting $3.00 a gallon in some areas of the West Coast.

Comparing Apples & Oranges
Everything is relative, as they say. This is especially so when one compares prices on a variety of liquids. Two dollars for a gallon of gas seems pretty cheap when you consider that a gallon of Lipton Ice Tea will cost you $9.52 and Ocean Spray Cranberry Juice is $10.00 a gallon. Evian bottled water is actually $21.19 a gallon and Scope mouthwash $84.48 a gallon. Vicks Nyquill weighs in at $178.13 a gallon, and I wouldn't even want to guess what you'd pay per gallon of perfume, though a quick glance at eBay yields a price tag of 5,120 dollars for a gallon of Ralph Lauren's "Romance" perfume, which incidentally is the same as the amount of feet in a mile. So, you can drive a mile for a few pennies of gasoline, or dig a ditch for a mile to earn the wages to pay for Ralph Lauren's "Romance" perfume.

OK, so we are comparing apples and oranges. The smallest bottle of perfume may last a lifetime, whereas a gallon of gas may be gone in less than one commute.

The Main Point
The benefits of synthetic lubes are many, as we continually reiterate. Superior wear protection, increased horsepower, cooler running engines, reduced deposits, reduced oil consumption, resistance to oxidation and breakdown, easier winter starts - they all add up to a better running, longer lasting vehicle.

But in this summer of high gas prices, it's the fuel economy benefit that gets motorist's attention. It is fairly well known that synthetic oils can help improve fuel economy by reducing friction.

Whether or not we agree that they're going up or going down, the fact remains that gas prices are on everybody's minds these days. That's why newspapers and magazines are writing about it. People want to know what will happen next. And most people, no matter what the newspapers write, really are a bit concerned about gas prices this summer.

In reality, synthetic oils are the right choice for any motorist with a mechanically sound engine. But this summer is an especially good time to introduce your customers to the advantages of synthetic motor oils and drivetrain lubes because of the fuel savings they offer. It's not magic, it's science. You should make it a sales point.

Ed Newman is the Marketing & Advertising Manager for AMSOIL INC.