Tag Archives: gas prices

How To Drive Through Chile Without Breaking The Bank

Even with the rising value of the US dollar and the dropping prices of oil worldwide, when you are on an overland expedition, you still need to be a little creative in order to conserve your budget. We have been on the road for about 20 months now and during that time, we have become pretty good at coming up with ways to stretch our money.

Keep on Crashing

I am sure everyone is anxiously watching the news outlets for glimmers of hope regarding the current global financial crisis. The value of people’s pensions plans are eroding, people are worried about having to work for another five years before they retire and Wall Street analysts and financial managers are wondering if they will have a job tomorrow. Actually, we here at the World by Road could not be more pleased with the current financial turmoil circling the globe.

Timing Is Everything

I know that we have posted a few blogs about our current financial situation recently and some of you are probably getting sick of it. The bottom line is we are struggling, but that is not going to deter us from finishing what we set out to do and that is to drive around the world, regardless of the reason. Unfortunately for us, we decided to drive around the world in an era of rising fuel prices and a declining US dollar. In fact, you might call it the perfect storm. However, if rebels in the Congo can not hinder our progress, you can bet that this little economic weather front will not stop us either, even if it feels like a category 5 hurricane right now.

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Courtesy of Newsbusters.org

To put everything in perspective, since I have been here in South Africa, one of the last apparent safe havens for the US dollar, the value of the dollar has declined about 8 percent to the South African Rand. At the same time, local fuel prices, which are controlled by the South African government and are set at a fixed price on a monthly basis, have increased about 6 percent. It has pretty much been the same in most of the countries we have traveled in. When we were in the Congo, we watched the value of the dollar drop nearly 20 percent compared to the Central African Franc and the fuel prices in Europe have risen enough to lead to massive transportation strikes in several different countries. Unfortunately, there is not much we could have done to either predict how much fuel prices would increase over the course of the expedition, or predict how bad the US dollar would get pummeled on the foreign exchange markets. Overall, the combination of rising fuel prices and the declining value of the dollar has increased our overall expedition costs by approximately 20 percent. On a trip of this scale and proportion, that 20 percent amounts to a significant amount of money. So, if you are contemplating a jaunt around the world, Alan Greenspan’s advice might be just as important as what type of vehicle you choose.

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Courtesy of Planebuzz

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Stats From The Road

Africa has been rough on both the trucks and the drivers here at The World by Road, but the wheels keep turning and the gas tab keeps adding up. Here are the most recent fuel prices, and distances covered.

http://theworldbyroad.com/wordpress/mileage-fuel-consumption-and-cost


Something Is Not Right Here

The number one expense on The World by Road is fuel. To date, we have spent somewhere in the neighborhood of $23,000 on fuel. We thought that Africa was going to be cheap, and compared to Europe, it is, but it is still fairly expensive to fill up here in west central Africa. As a result of the higher fuel prices we have been encountering in Africa, we were looking forward to making it into Nigeria where we heard that gas is relatively inexpensive.

Gas is cheap in Nigeria costing only about $2.25 per gallon compared with prices that exceed $5 per gallon in neighboring countries, but in order to get gas in Nigeria at $2.25 a gallon, you must pay another price: a huge commitment of your time. I would estimate that over 90 percent of the gas stations we passed in Nigeria were either abandoned, shut down, or out of fuel. When you do come across a gas station that is open and has fuel in it’s pumps, you are forced to wait in excruciatingly long lines. Sometimes, the wait for fuel at a service station can occupy three or four hours of your day.

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One of the countless closed service stations we passed in Nigeria

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People wait for fuel at one of the few open stations near Gusau, Nigeria

Nigeria is the number six producer of oil in the world, but most of the oil that is pumped from Nigeria’s territorial waters is exported. Despite its position as an OPEC heavyweight, Nigeria is forced to import gas to meet it’s domestic demand. Refining capacity in Nigeria is almost nonexistent and the refineries that are operating in the country are run by the government which even admits that they are poorly managed, inefficient and plagued by maintenance issues.

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Signs of Nigeria’s dilapidated energy infrastructure

In some regions of the country, like the state of Sokoro, none of the service stations had fuel available, so one is forced to search out fuel on the black market. Sokoro was where we entered Nigeria and we were totally amazed at the fuel situation there. No one had fuel of any type and no one expected to have any for days. One service station was expecting a shipment in two days, and already there was a line of more than 50 cars outside the gate. We obviously did not want to wait for two days for the fuel to arrive and then spend another day waiting in line, so we found some illegal fuel for the trucks at a roadside black market stash.

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Black market fuel vendor in Zaria, Nigeria

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We were not willing to wait so black market fuel it was

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Fortunately for us, black market fuel in Nigeria is still cheaper than legal fuel in other parts of West Africa

Nigeria has a well established black market for fuel and some people’s sole income is derived from selling illegal fuel. Most cities have an organized group managing black market fuel and you can even spot local authorities purchasing fuel from roadside vendors. Because it is black market gas, you can expect to pay more for it. Throughout Nigeria, and depending on the overall availability of legal fuel in a region, you can expect to pay anywhere from 90 to 140 Naira per liter on the black market compared to the fixed price of 70 per liter at a service station. This is a pretty significant price difference, but a difference you are willing to pay when confronted with a seemingly endless line of cars in front of you at the service station. Unfortunately, for many Nigerians, this is a price difference that they can not afford, so they must either find alternative means of transport, or dedicate a large portion of their time to filling up their vehicles at legitimate stations.

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Waiting for fuel in Gboko

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You can make a good living buy legal gas in one state and reselling it for double the price in the next

The situation here is pretty bad and the black market also perpetuates attacks on pipelines and refineries that are operational by rebel groups who sell fuel on the black market to finance their activities. The demand for fuel in Nigeria far exceeds the supply (the power grid is so unreliable in Nigeria that many hotels and businesses run generators which further reduces the available supply) and this is strange coming from a country that has so much oil to go around. If there is one positive, I have one more for the I never game: “I have never bought black market fuel from rebels in Nigeria…”