Absent a major Gulf Coast hurricane, unexpected international strife or a wave of refinery woes, average U.S. gasoline prices are not expected to rise to the $3-a-gallon psychological threshold this summer — a good sign as well for the broader economy, which is under pressure from a weakening housing market.[AP via SFGate]
Okay. But what about Spring? Right now, high test — sorry, showing my age — premium gas in my neighborhood in San Jose is as high as $3.55 per gallon. Regular is about $3.33.
But as always, the price of gas is pegged to the ability of everyday people to tolerate it. Consider that the peak price for gas in 1997, during the height of the Clinton administration when Republicans were berating him for not releasing the Strategic Petroleum Reserve (adjusted for inflation) was $1.90.
So, where are the calls from the Republicans for George Bush to do something about oil prices?
Myself, I don’t care. I think that gas should be more expensive so that we think a bit more about using our cars. The biggest problem is inferior public transport. Here in San Jose, the light rail system is a silly boondoggle that doesn’t go where people need to go. If I were to try to take light rail to work every day, I’d have to drive 3 miles to the closest station, where there is no parking. Then once I got to Mountain View, I’d have to walk another 2 miles across freeways and what not to get to my office. Not very commuter friendly.
My office is 10 miles away, via expressway, so it’s not a very scooter-friendly spot.
The thing is, people were going crazy about $2/gallon gas, and now that it’s approaching $4 per gallon, it seems to have passed a threshold where people stop caring. This is an example of the creeping prices that oil companies employ: raise prices until people start to get pissed off, then back off just a little bit… then a few months later, start creeping them higher again. When they complain, back off — but only a little bit, leaving prices higher than where they started.
And this strategy is working.
Unless you live in a metropolitan area, public transportation may not be a sensible alternative. Here in the sticks, where many people live, they have to travel to all sorts of locations and the funds for a fleet to cover all that just wouldn’t make sense. I live 30 miles from where I work, as do many people, however they may work 30 miles in a different direction. So, for the people who live in rural areas (and there’s a lot of us) how would raising the gas prices help?
Also, please tell me you’re not falling for the “You must put premium in this car” trick. Now THAT’S a scam.
Even IN a metro area, public transportation doesn’t always make a sensible alternative. I think that municipalities need to work on this issue immediately, a good public transportation network would help both in gas costs and climate change issues. Raising gas prices would only help if that extra money was used for a comprehensive transit system. For instance, there in Marion there should be a cheap light rail system that goes down Route 13 to Carbondale since so many people commute between those towns.
And no, I didn’t fall for the premium gas trick, and I’ve had no problems since I don’t drive 95mph on a race track…