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Gas dips below $4 a gallon — brace yourself for fuel price amnesia

July 28, 2008

Ponder these two numbers. Travel on all roads and streets fell by 3.7 percent in May, the latest month for which data is available, as compared with same month in 2007. And gas prices have declined for the 11th straight day, dipping below $4 a gallon.

Kinda makes you wonder: If energy prices fall any more, will we get back on the road with our gas-guzzling SUVs and minivans? Or have $150-a-barrel oil changed the way we travel permanently?

Let’s take a closer look at the data. A check of the regional breakdown in the May driving data reveals that certain regions of the country — notably the Midwest — have put the brakes on travel by car. The western part of the country is off by only about 2 percent.

Put differently, not all of use are about to trade in our wheels for a train ticket. (Indeed, some of us can’t.)

A look at daily fuel rates suggests that prices at the pump are about to fall even more. Note the spread between prices paid at the pump and crude oil prices, which tend to move in tandem.

I hope the higher gas prices of the last few months have scared us straight. I hope we’ll embrace alternative energy sources and cut back on our fossil-fuel consuming ways.

But I doubt it will be enough. I think we need sustained fuel prices above $5 a gallon in order to change the way America travels. Otherwise, we’ll just slip back into our old ways.

Next up: fuel price amnesia?

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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6 comments

  • Jasper

    Some American politician once fumed at the European full taxes. It was a waste of tax-payers money he argued. The European politician answered: well, that’s only how you look at it. We’ve used that tax money to improve our European infrastructure, and build a very good public transportation network, and all the jobs related to that network. Furthermore, we got citizens to buy more fuel efficient cars, before gas prices went bezerk.

    Now that prices are going up, people have an alternative travel method. In the US, all the money for gas has flown out directly out of the US, into the hands of folks you don’t really wanna call your friends. Let’s not forget the US is still buying oil from Iran.

    Meanwhile in the US, USDOT is doubting that a metro line to Washington Dulles can ever be cost-efficient, and Virginia legislators are more worried about their tobacco subsidies. This obviously, despite the success of rail connections to airports in New York, Chicago, San Fran, Boston, Mexico City, Tokyo, London, Paris, Madrid, Stockholm, Amsterdam, etc etc etc.

  • Jim

    I found an interesting site, while online that boasts a new service that offers fixed price gasoline. The company is GasBankUSA and their website is http://www.gasbankusa.com

  • MoNgo

    If it makes you feel better, DOT will need a tax increase to offset the double-whammy of 1) less revenue from decrease in gasoline purchases and 2) great increases in asphalt prices–puts a dent in their $1.7 trillion budget, just when bridges are collapsing in Minnesota.

  • Angie

    Have you heard about the new checked baggage fee’s for Delta? The oil has kept moving down slowly and Delta simply doubled their fees for the second checked bag. Not only that, previous “checked baggage fees” were given to the customers with a couple weeks notice. In this case, embrace yourself to pay for this starting August 5th. Thankfully I have never been a fan of Delta.

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