
Last month, I paid $52 to fill up my 16 year-old Mustang, which used to cost $15 when I first bought the car. That’s nothing, compared to what my husband had to pay to fill his vehicles, one of which is a truck. Over the last week or so, I got a glimmer of hope when I happened to see the price billboard at my local gas station.
The price fell from $4.56 to $3.97 in less than a month. Is this for real? Then it dropped to $3.83 last Thursday. I should have filled up my tank right then because I knew that Hurricane Ike was coming and that it would likely slam those oil refineries. It didn’t, and I wound up taking care of that this morning, surprised that the price went up by a mere .05ยข.
Remembering how the victims of Katrina got gouged as high as $5/gallon three years ago, I had fully expected the price to rise as high as $6.00 in my neighborhood. After all, we Californians are deemed as rich and can afford it, right? Wrong. I’m counting my blessings.
My husband and I got into a discussion about the price of gas and how it has effected the economy. He watches the trends all the time. Me, I’m seeing more and more hybrid cars on the road, such as the Prius. Our discussion revolved around how people are sick of being gouged.
He made the analogy of someone walking into a local McDonald’s only to discover that the cost of a BigMac is $20. That person may say, “Well, I’m already here so I might as well pay for it.” That customer may pay that exorbitant price once, if he is forced to do so. But you can guarantee that he won’t be back.
He’s right. No other industry would have gotten away with the type of greed that the oil industry has enjoyed without running themselves into bankruptcy. The old saying, “You reap what you sow.” is beginning to hit the oil industry (see the NYT article below). If you’ve been watching or reading the news, then you know that people are driving less (or irritatingly slow in order to conserve), have opted to stay home for their annual vacations, etc. This isn’t a big surprise, but it was a long time in coming.
With all the talk about the Greenhouse Effect, I wouldn’t be surprised to see hybrid cars dominate America’s highways over the next ten to twenty years. Out of desperation, comes innovation.
Source: New York Times: Crude Oil Declines, Trading Below $100