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