The AP reported on rising gas prices, saying that the average price of gasoline in the US is now $2.50.
With $3 gas a possibility by summer.
Between my wife and I, we go through about 25 gallons of gas a week, so $2.50 gas would be about $250/month and $3 gas would cost about $300/month. So, we're looking at $50/month difference — a few meals out, but nothing too too major. There's still cushion enough in our budget to absorb more expensive gas.
However, I have a relatively short commute, so I know that we don't use nearly the gas that a lot of other people do. And we don't have offspring with social schedules that demand their own wheels. (OK, I lied: My daughter has a stroller, but it runs on diesel.)
For some, the $50/month hurts a lot — enough to derail plans for an emergency fund or saving for retirement. Or it keeps them from paying off credit card debt faster than the minimum payment method.
How would you bridge the gap caused by rising gas prices? Scrimp? Make more? Invest less?
Daran: I certainly do not disagree that we need to reduce our use of petroleum products. However, you cannot tax it out of the people. We will end up like Europe, and we don't want that. They just give up on the idea of finding alternatives. Then inflation happens, and people just make more money. It is a cycle, and taxes are the stimulus, not the solution.
We are on the right track. People need to start supporting American car companies again. They make good cars, these days. Plus, they are the ones pushing for alternative fuels (not the European or Japanese automakers). GM is spending the most on hydrogen technologies, and they are pumping out the most flexible-fuel vehicles around. Now, if we could have a gasoline-electic hybrid flexible-fuel vehicle, we would be able to make a huge dent. Most of the, if not all, of the money would stay here because the farmers would have a lot of work, and we could actually use our own petroleum, instead of OPEC's.
That would allow us the time and resources to have hydrogen be a viable solution.
$.50/gal may be not be the worst thing in the world, on a personal level. However, what does $.50/gal do to groceries and everything else? If you use $50/month more on gas, but then have to pay $50/month more on other expenses… it may start to pinch. And if gasoline prices go up, so will natural gas and heating oil, which may not be a big deal in the summer, but come late fall, that won’t be nice either.
If it hits $3/gal, I may try to telecommute a day per week. My boss is pretty flexible. While I wouldn’t mind doing that anyway, I wouldn’t want to push it without much of a reason. If gas hit $3/gal, that may be good enough of a reason. He drives a Chevy Silverado, and he may try to telecommute as well. And if he and I did, our assistant might as well (although she rides the bus and works eight blocks from work, but she has asked about that a few times).
If I lived closer, I would potentially ride a bike to work, whenever possible. I might be able to ride a bike up to the point where the bus work pick me up (we have bike racks on our busses).
However, next week, my annual renewal for phone/internet/satellite is up, and SBC/AT&T are offering $12.99/month DSL. I am using the speedy package right now, and pay $35/month. We have Dish Network and are paying $60/month… and there is a slightly different package out that has more channels and is $35/month. SBC/AT&T are offering a promotion that will give you $20 if you give them 10 minutes of your time and they can’t lower your overall bills for phone/internet/satellite. I have a feeling I could easily get to about $50/month of savings there.
I am also working a plan to lower my heating/cooling costs as well. This summer, I am replacing the stoop behind my back door with a nice 12’x25′ patio. I plan on putting up a pergola that can shade the patio door and maybe the big series of windows to go to my living room. The back of my house faces south-southwest. In addition, I am planning on putting up some solar screens on the windows on that side of the house. Combined with double-paned windows and blinds, you are supposed to be able to stop about 85% of the direct sunlight. I would take these down in the mid to late fall, so that the sun could shine through in the cooler weather, and the pergola would not be blocking the sunlight as much then, because the sun would be lower in the sky (passive solar energy). I am also planning to insulate my garage and get an insulated garage door. This should help as my master suite is above the garage.
I’m in the distinct minority of folks who cheer the increase in the price of carbon-based fuels every time it happens. I wish the feds would steadily increase taxes on gasoline by 100% over the next 10 years. My concern is not our precious, gluttonous standard of living in modern America, but the prospects for my daughter’s descendents down the road.
OPEC will reduce the price of oil when our consumption cuts back significantly. That won’t happen until the price of a gallon of gas hits four bucks. Right now OPEC keeps the price just below the point at which we’ll get serious about doing something about it. We need to keep taxing the hell out of gas to stabilize the financial future of alternative fuels (meaning it will remain financial viable due to carbon taxes) and keep more of the money we spend on gas right here in the USA. U-S-A! U-S-A!
Dus10: Sorry, I don't see American car companies leading the way towards alternate fuel vehicles. They had to be dragged, kicking and screaming to flexible fuel vehicles. That was one of the compromises they made so the CAFE standards wouldn't be raised. They are simply interested in making what american consumers will buy, its not really their fault. The government can and must get the american consumer to understand that there is cost associated with our continued reliance on OPEC oil. What's the cost of stationing troops and the 5th fleet in the middle east? Let's not hide it in the defense budget, break it out and add it to the cost of gas. That will get american to change their habits. Don't want to start a debate about politics (and I don't think this has anything to do with it). I just think that the cost of the oil economy isn't full disclosed.
A couple of days ago I heard part of an interview on NPR regarding the proposal Daran brings up in comment 2. There is credence to this argument. I think it needs to be more carefully considered, since there are side effects to raising the gas tax.