Posts Tagged ‘High gas prices’

When Is Gas Considered A Luxury?

May 18th, 2011

So at what point is gas considered a luxury good, and if not now, then when should we think of it as one?

High gas prices

Where I live, gas is at $4.00 a gallon, and I started wondering what would the monthly cost be if the price continues to climb.  So below is some quick numbers that I put together in a spreadsheet to compare projected cost of gas prices in the near future.

I chose the $4 (current), $6 (some project this rate for this or next year), and $9  level  just for a good contrast.

Day Miles/Day Gas Price: $4
Monday 60 $4 $12
Tuesday 45 $4 $9
Wednesday 60 $4 $12
Thursday 45 $4 $9
Friday 45 $4 $9
Saturday 30 $4 $6
Sunday 15 $4 $3
$60
Monthly: $267.00
Day Miles/Day Gas Price: $6
Monday 60 $6 $18
Tuesday 45 $6 $14
Wednesday 60 $6 $18
Thursday 45 $6 $14
Friday 45 $6 $14
Saturday 30 $6 $9
Sunday 15 $6 $5
$90
4 weeks $387.00
Day Miles/Day Gas Price: $9
Monday 60 $9 $27
Tuesday 45 $9 $20
Wednesday 60 $9 $27
Thursday 45 $9 $20
Friday 45 $9 $20
Saturday 30 $9 $14
Sunday 15 $9 $7
$135
4 weeks $540.00

 

 

$540 a month for gas would mean that gas is a luxury for me.  At that point, I’d definitely be carpooling!  There is a great chance that I would be biking or walking more often to close destinations too (like visits to the library).

Actually, there is a good chance that I would try to carpool with more than just my buddy.  I think I would try to get 4 total people to carpool with, if possible.  By having 4 people in the mix, that would drastically reduce my gasoline cost (if not for weekends it would be by a factor of 4).

If I lived in a larger city, I would consider taking public transportation too, but since I don’t… public transportation isn’t really an option for me.  I would definitely try to push the telecommuting option though!

 

So forget the Grey Poupon, pass me a can of gasoline please!

Bests,

MR

Carpooling to Save Money and Reduce Gas Prices

October 23rd, 2009

During the winter of 2008, I was amazed when gas prices crept over $3.50 a gallon (not to mention when it went over $4.00).  When this happened, I asked a buddy from work if he wanted to start car pooling.  We have the perfect scenario, he only live 2 miles from my house, and his house was on the way to work for me.

The arrangement was, we would alternate weeks of driving, so for first week, I drove, the next week he drove, then me, then him…

My Benefits from Car Pooling:

  1. Lowered my monthly gas spending from $180 to $90.
  2. Reduced the wear and tear on my car by 1/2.
  3. I did my part to try to reduce oil prices by car pooling.
  4. I cut the carbon emissions I produced by half.
  5. Cut down on traffic on the highway by 1 car.
  6. Freed up 1 parking spot at work (our lot is pretty full, or was…).
  7. It’s nice to ride some mornings, instead of driving.

Once the gas prices fell to the low $2 range, we stopped car pooling at that time because of conflicts in schedules.  However, if prices creep back up to the $3.50 or higher, we said we would start car pooling again.

Near the end of our car pool trips, we both started telecommuting once a week, and that was even better!

Below is the ultimate solution to high gas prices, if the weather and distance permits (which in my case, it doesn’t).

If gas prices get too high...

If gas prices get too high...

-D

Update, I forgot to add a few additional benefits:

  • If you’re in an accident, you have a captive witness (unlikely, but still nice).
  • Forces you to adhere to a more strict timetable, you don’t want to be late or pickup your buddy late.
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