Tag Archives: gas

When Is Gas Considered A Luxury?

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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

Free Cars in The Future and High Gas Prices

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The year is 2021, and now cars are free!

Well, to be exact, fossil fuel powered cars are free.  The still growing electric car segment is still quite pricey.  Surprisingly, the Chevy Volt now cost $60,000, a 50% increase over the 2011 price of $40,000.  And the real shocker is that the Chevy Volt is now the most affordable of the wave  of electric cars on the market!

You see, gas prices are now $25 a gallon and the oil companies now provide free cars, as long as you use them, per the usage contract (daily for 5 years).  Of course any repairs would have to come out of the user’s pocket.

Seems like a good deal until you realize that gas prices are expected to increase another $5 before the year is up, and to accelerate at a higher rate every year after that!

Some clever neighbors will pool their money and buy a single car so they can carpool to work, but this is now illegal in the future because of capacity rules.  Oh it’s still happens and it’s hard to prove that this is what they are going, so most do it because they can’t afford the exorbitant prices of gasoline and diesel fuels…

Okay, the above scenario most like will never happen, but without a smooth transition period from oil to alternative sources of energy, it could really disrupt the lives of individuals, especially rural and suburban folks.

Back to 2011:

So this is why I think it’s best to drill oil for the time being.  Yes, let’s keep pushing alternative sources of energy (especially electric via solar and wind farms), but let’s not hurt the average American during our switch over!  After all, they are the segment that will get hit the hardest by higher fuel and food prices!

Higher food prices?  Yep, once gas prices go up for the farmers, they just pass the cost to the consumers.  Now you might think that’s wrong… but they have to make a living!  Both farmers and companies that aren’t profitable go out of business, and that means we all suffer!

Doesn’t it make sense to keep oil prices down by doing whatever is necessary until we get electric to be the main source of power for cars?  Not forever, but for a while…

Thanks for reading my soft rant!

-MR