We want to re-post our gas price sensitivity matrix, which illustrates how various prices will impact individual consumers given their average miles driven per day. We had to make an assumption on the automobile’s gas mileage so we took the national average calculated by the Department of Transportation, which is 17.4 mpg. We also used an average price of $2.50 per gallon for 2010.
If gas prices were to average $3.75 per gallon in 2011, for example, a person who drives on average 60 miles per day (21, 6oo annual) will spend and additional $1,551.72 on gasoline during the year. This is more than the GDP per capita of 30% of the countries monitored by the IMF and 130 percent of India’s 2010 GDP per capita. Needless to say, that is some pretty big cheese, especially if there are two commuters in a family. (click matrix for better resolution and clarity)
(click here if matrix is not observable)