Tuesday, January 3, 2012

$5 gas in 2012

Between the normal supply/demand cycle that peaks in the summer, and the unrest in the middle east, some experts are predicting that gas will top $5/gallon this summer. (Story HERE.)

Ouch! Expensive gas always has a negative impact on the economy. When people are pouring their money into the gas tank, they're not buying filet mignon and speedboats and junkets to Vegas. Since it's an election year, I expect the incumbents to do everything they can to keep prices down. They don't want their supporters to stay home on account of not being able to afford the trip to the voting booth.

If past history is any indicator, commuter habits seem to be impacted by a run-up in gas prices, more than pretty much anything. Our office bike-parking facility bulges when the weather is nice and gas is expensive.

Naturally, those who will be impacted the most are those who choose to live long distances from their daily destinations. And particularly those who live far away, and who drive Hummers, super-duty pickups, etc., for their daily transportation.

3 comments:

Marc said...

The price of fuel is a bummer, but in my opinion we need to stop padding the pockets (with money we never had) of corrupt nations because we have an unhealthy relationship with one or more of their natural resources.

Bikeboy said...

I agree, Marc! And the best way to do that, IMO, is to lessen the "demand" side of the supply/demand ratio. And one of the best ways to do that is to drive less.

Marc said...

I knew I would be preaching to the choir.