Based on geography and demography, the impact of plunging gasoline prices varies but it is likely that we are spending 80% of it according to JP Morgan.
Gasoline prices rise faster than they fall because monopolistic competition provides retailers with some price control although their product is identical.
Since gasoline prices vary in the U.S. because of different state taxes and wholesale crude, the impact on consumption expenditures also is different.
As the turmoil in the Middle East unfolds, if you want to sound knowledgeable about oil, you could just say $147, contango and floating storage. As you can see on this graph, it was mid-July, 2008, when the price of…