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Fun with numbers

Thursday, Jun 20, 2019 - Posted by Rich Miller

* Kankakee Daily Journal editorial

In a recent story published in the Indianapolis Business Journal, Patrick DeHaan, of the cost analyst company Gas Buddy, speculated that come the first of July, many Illinois motorists will make the short trip to Indiana to take advantage of lower fuel costs.

The Hoosier State charges a 29 cent per gallon fuel tax, which is 9 cents per gallon less than the per gallon tax Illinois is about to impose. […]

Two of those places stand to be the neighboring Indiana towns of Morocco and Kentland. For many of us, these towns can be reached in 30 minutes or less by car, and a bit more investment in time will be justified by the cash savings.

Morocco, Indiana is 34.4 miles from the Daily Journal’s office. Figure the miles per gallon at 27 (much less if you drive a pickup) and that’s a bit more than 2.5 gallons of gas round trip.

I couldn’t find gas prices for Morocco, but according to DeHaan’s Gas Buddy, just to the south in Kentland the best price is $2.67 per gallon - 20 cents more per gallon than the price at Kankakee’s Murphy USA truck stop.

If you think it’s worth it to spend over an hour of your precious time (actually closer to two hours with the stop) and $6.68 in gas to save $1.80 in Motor Fuel Tax (plus a few cents more on sales tax) on a 20-gallon fill-up (for gas, by the way, which might still be more expensive than at the Murphy USA station), then, by all means, be my guest.

       

50 Comments
  1. - DirtLawyer - Thursday, Jun 20, 19 @ 1:46 pm:

    People don’t think rationally when it comes to taxes. Look how many people shopped outside Chicago over soda. They’d spend $3 to save $5, not factoring in time and wear and tear on the vehicle. That said, after time I don’t think it’ll be that big an impact.


  2. - 47th Ward - Thursday, Jun 20, 19 @ 1:46 pm:

    Momence maybe, but not Kankakee.


  3. - Just Observing - Thursday, Jun 20, 19 @ 1:47 pm:

    Well there are people, without consideration of their gas costs or opportunity costs, that will spend an hour-plus in line for 55 cent cake-day at Portillo’s, or drive 20 minutes for a free slurpee at 7/11 on July 11.


  4. - El Conquistador - Thursday, Jun 20, 19 @ 1:49 pm:

    People are stupid. Some will do it.


  5. - McGuppin - Thursday, Jun 20, 19 @ 1:52 pm:

    Hahaha….I’m glad to learn that the Ed Board doesn’t let common sense get in the way of their soap box. Well done, Rich.


  6. - Morty - Thursday, Jun 20, 19 @ 1:52 pm:

    Some people have no concept of the cost of time.

    It’s the one thing you can’t get more of.


  7. - Jechislo - Thursday, Jun 20, 19 @ 1:56 pm:

    More realistically Rich, very few people coming from Indiana to or through Illinois will buy any fuel in Illinois.


  8. - Rich Miller - Thursday, Jun 20, 19 @ 1:57 pm:

    ===More realistically Rich===

    Tell it to the K3 DJ. It’s their scenario, not mine.


  9. - lakeside - Thursday, Jun 20, 19 @ 2:00 pm:

    ==very few people coming from Indiana to or through Illinois will buy any fuel in Illinois==

    I


  10. - Bogey Golfer - Thursday, Jun 20, 19 @ 2:00 pm:

    Likely if I am going through Indiana (on the way to Michigan) I would check my gas gauge and fill up if it was under half-full.


  11. - Robert the Bruce - Thursday, Jun 20, 19 @ 2:02 pm:

    I plan to take the Tollway to Indiana for cheap gas. /s


  12. - TheInvisibleMan - Thursday, Jun 20, 19 @ 2:05 pm:

    I’ve driven through Kentland many, many times.

    I don’t think the towns of Iroquois and Sheldon are going to be huge cash cows for them.

    But lets have even more fun with numbers.

    To save .09/gal, someone is going to drive 30min one way?

    On a 20gal tank, that’s a savings of $1.80. Most cars don’t have a tank that big.

    Someone is going to spend an hour of their time, to save $1.80 at most?

    That means these people are valuing their own time at much less than $1/hr.

    Now, add in the amount of gas you would use driving half an hour each way, and the savings is not only eliminated but it actually ends up costing you money.


  13. - Jebes - Thursday, Jun 20, 19 @ 2:06 pm:

    There are more horses asses in the world than horses.


  14. - Da Big Bad Wolf - Thursday, Jun 20, 19 @ 2:06 pm:

    A visit to the Hoosier Valley Railroad Museum, (never been, always wanted to go), looking at the leaves changing color at the spectacular Ogden Dunes, camping at the Turkey Run State Park and a breathtaking canoe ride up Sugar Creek, all reasons to gas up in Indiana. Otherwise, drive just to gas up? Boring.


  15. - fyredog - Thursday, Jun 20, 19 @ 2:07 pm:

    I live over on the Iowa Border where gas is consistently .15-.20 cents a gallon cheaper. Not sure what the new Illinois gas tax will do but I’m sure it will increase the difference. But it has been years since I regularly fill up on the the Illinois side of the border. Since I usually have business across the river, it’s no inconvenience.


  16. - Union Dues - Thursday, Jun 20, 19 @ 2:07 pm:

    If they smoke and buy cigarettes there at the same time then they will save money.


  17. - What's in a name? - Thursday, Jun 20, 19 @ 2:08 pm:

    The good news is if Darwin was correct when these folks are driving back and forth they will not be reproducing.


  18. - City Zen - Thursday, Jun 20, 19 @ 2:21 pm:

    Spite is priceless.


  19. - Michelle Flaherty - Thursday, Jun 20, 19 @ 2:24 pm:

    Gas prices are always mysterious. They can vary by 10-cents or more per gallon just between Decatur and Springfield on any given day.


  20. - Cromulent M. Biggens - Thursday, Jun 20, 19 @ 2:26 pm:

    I’ve always liked this XKCD summary: https://xkcd.com/951/


  21. - Stones - Thursday, Jun 20, 19 @ 2:29 pm:

    Americans will drive 10 miles out of their way to save .02 / gallon of gas and then buy a bottle of Fiji Water for $3. Never quite been able to understand it.


  22. - Huh? - Thursday, Jun 20, 19 @ 2:30 pm:

    Visitors to Illinois will buy gas if they need it, price will make no difference. Was in Colorado last week. Stopped at a gas station out in the middle of nowhere. Paid nearly $4 per gallon to fill up. 25 miles down the road, the price was about $2.50 at a major truck stop. I needed the gas and was willing to pay to fill the tank.

    People living in or near the border will cross to buy gas. Us yokels in the middle of the state know better to spend $10 to save $2.


  23. - northernwatersports - Thursday, Jun 20, 19 @ 2:32 pm:

    Lets all have a little faith…I’m not particularly skilled in most mathematics, but I can easily figure out what my personal time is worth in $’s, and can do the basics….
    No way. Some people might stand on principle, as is their right. I figure about 30 days after the taxes go up, most fuel buyers will have figured out that the effort doesn’t actually equal any savings to their particular lifestyle or purposes.
    If they give it some critical thinking time, they might also actually see that their choice of political leaning (and it’s political leaders) are really just making word salad and platitudes to voters, otherwise known as intentionally being misled, underinformed and ‘hoodwinked’.


  24. - VerySmallRocks - Thursday, Jun 20, 19 @ 2:35 pm:

    It’s the “principle”…


  25. - don the legend - Thursday, Jun 20, 19 @ 2:52 pm:

    Had an uncle that use to say, “He’s so dumb, he’ll spend a dollar to save a dime.”


  26. - Old Illini - Thursday, Jun 20, 19 @ 2:58 pm:

    Living in San Diego in the 60’s, we fantasized about putting a 100 gallon tank in a VW Jetta diesel, giving a 3000 mile range, when Tijuana diesel was 15 cents a gallon. That works ought to a half cent per mile, with a $15 fill up every 3 months.
    Todays numbers don’t justify driving more than a few miles for cheaper gas, as many here have pointed out.


  27. - Donnie Elgin - Thursday, Jun 20, 19 @ 3:15 pm:

    Good point- poor data set. The price between the station in Hebron IL and the BP’s in Lake Geneva is generally 25-30 cents per gallon. distance 9 miles one way. Price spread will be greater after July 1.


  28. - AlienOverlord - Thursday, Jun 20, 19 @ 3:17 pm:

    Sounds very Kankakee of them


  29. - Birdseed - Thursday, Jun 20, 19 @ 3:21 pm:

    I’d like to own the gas station on the Missouri side of the River across from Alton.


  30. - Dale Doback - Thursday, Jun 20, 19 @ 3:21 pm:

    There’s a better chance the these Indiana Border town will raise their prices to closely match. The Daily Journal should know better. How many folks drive down from Will and Cook to fill up in K3? A bunch.


  31. - Dale Doback - Thursday, Jun 20, 19 @ 3:23 pm:

    Also, sales tax in K3 county is still 6.25%. One the cheapest around.


  32. - 47th Ward - Thursday, Jun 20, 19 @ 3:27 pm:

    I remember in the 1970s, the Daily Journal had an April Fool’s gag story about a gas station on the west side charging something like 17 cents per gallon. Cars were lined up on station street for blocks trying to get in there to fill up. It remains one of my favorite April Fool’s day pranks of all time.

    Of course, that was back when people read newspapers. I was a paperboy for them too, and 99% of the homes in our neighborhood were subscribers. A lot has changed, but apparently the Daily Journal’s fascination with low gas prices remains the same.

    Also, if most people had a good understanding of math, the lottery wouldn’t exist.


  33. - Steve - Thursday, Jun 20, 19 @ 3:28 pm:

    Kankakee probably wishes it was Chicago’s 10th Ward going to Indiana to buy cigarettes.


  34. - Rich Miller - Thursday, Jun 20, 19 @ 3:28 pm:

    ===I remember in the 1970s, the Daily Journal had an April Fool’s gag story===

    They were infamous for those. They did one about how streakers were about to descend on K3.


  35. - 47th Ward - Thursday, Jun 20, 19 @ 3:31 pm:

    ===They were infamous for those.===

    WXRT used to some good one too.

    In the K3 DJ gas story, they quoted an economist named Dr. Lipra Lofos and a lot of people still didn’t get it.


  36. - Soccermom - Thursday, Jun 20, 19 @ 3:32 pm:

    47th - my favorite factoid is that you do not significantly increase your odds of winning the lottery by buying a ticket. You are almost as likely to find or be given a winning ticket as you are to buy one outright.


  37. - Rich Miller - Thursday, Jun 20, 19 @ 3:33 pm:

    ===they quoted an economist named Dr. Lipra Lofos===

    I’ve done a handful of April Fool stories, and I usually slip in some expert named Loof Lirpa.


  38. - drh - Thursday, Jun 20, 19 @ 3:34 pm:

    I grew up right outside of Grant Park in Kankakee county about 10 miles from the Indiana border. Gas was never any cheaper on that side of the border nor convenient to get to. On the other hander, Manteno was closer and usually had the cheapest gas around.


  39. - efudd - Thursday, Jun 20, 19 @ 3:39 pm:

    Years ago, it was worth the trip to drive to Cape Girardeau or Paducah to fill up. Then Missouri and Kentucky raised their taxes so gas was only a couple of cents lower per gallon.
    Wonder if Indiana will do the same.


  40. - Pundent - Thursday, Jun 20, 19 @ 3:41 pm:

    I just looked at my Gas Buddy app. The range in a 5 mile radius is $2.57 to $2.99. Hard to believe that .09 is going to cause somebody to drive 30 minutes to fill up. If it was that compelling nobody in this area would be able to survive selling gas at $2.99. And there are plenty of stations doing just that.


  41. - very old soil - Thursday, Jun 20, 19 @ 3:45 pm:

    And a barrel of oil (WTI) went up 5.4 percent today.


  42. - cover - Thursday, Jun 20, 19 @ 3:55 pm:

    = I’d like to own the gas station on the Missouri side of the River across from Alton. =

    You mean the side that’s extra prone to flooding?


  43. - IT guy - Thursday, Jun 20, 19 @ 4:00 pm:

    Perhaps they could provide some analysis as to how much revenue we may be taking in from the citizems of Indiana driving to Illinois to purchase marijuana.


  44. - Benjamin - Thursday, Jun 20, 19 @ 4:39 pm:

    I’ll usually top of my tank when I’m traveling back to Chicago from Indiana or even just the suburbs. But that’s only if I’m already out there. No way does it make financial sense to drive more than a few minutes to save even $0.25 on gas.

    Also, I predict that once Illinois gas taxes go up, any gas station just on the other side of the border will raise their own prices in tandem. They’ll still be cheaper than on the Illinois side, but not by much.


  45. - Shall not be infringed - Thursday, Jun 20, 19 @ 5:11 pm:

    As a teenager in Carbondale, it was a ritual to fill someone’s car with people and drive to Cape Girardeau to take advantage of lower-priced fuel, or so we said. The savings did NOT pay for the trip, but we pretended it did.


  46. - M_Six - Thursday, Jun 20, 19 @ 6:01 pm:

    We just drove from Charleston, IL to DC. Cheapest gas was in Charleston by a few cents. Pretty much a wash, though.


  47. - Union Thug Gramma - Thursday, Jun 20, 19 @ 10:02 pm:

    First, it would not be a savings for me to drive to Indiana from the western suburbs…OTOH, look at what Indiana does not have…they don’t have better roads, they don’t have better schools, but we’re always told about Indiana…the poor step brother.


  48. - Illinifan - Friday, Jun 21, 19 @ 7:04 am:

    In the last two days I filled up in N. Carolina, West Virginia and Ohio. I paid $2.25/gal each time.

    While passing through Indiana, I never saw a price below $2.59.


  49. - SOIL M - Friday, Jun 21, 19 @ 8:50 am:

    It’s more likely that come the first of July many Illinois residents will travel to Indiana and buy gas, but not necessarily for the savings. They will drive over buy fireworks, fill up with gas, ans then come home and talk about the lower taxes. The same thing goes on in Missouri. On any normal day people living close to the border will drive over to buy gas and smokes due to the savings. Come the first of July however people drive from all over to get to Boomland. They also buy gas and smomes while there. I suspect it is the same along Indiana border, but haven’t seen it so only a guess.
    Comparing the first week of July might give skewed results


  50. - Candy Dogood - Friday, Jun 21, 19 @ 8:54 am:

    I’m not sure Indiana is the best example of where this might occur since most of our border with Indiana or Kentucky for that matter ain’t exactly densely populated and there are many miles between settlements on either side of the river.

    This might change habits for folks that already commute back and forth for other reasons, but I don’t see this being a thing as much as folks pretend to.

    I get that a cost benefit analysis isn’t exactly something people learn to do in grade school, but folks will figure it out.


Sorry, comments for this post are now closed.


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