Gas price goes up… demand goes up?
The price of gas is at an all-time high today, $76.40 a barrel That’s $1.81 before being refined, shipped, and sold.
In the past year, the price of gas has gone way up, and at some stations flirts with the $4/gal price tag. So what are Americans to do? We consume 40% of the world gasoline, and we are starting to pay near what other developed countries pay. The solution?
Americans consumed 1.7% more gas now than they did last year.
Source: CNNMoney
I have theories on why Americans have failed to conserve fuel, beyond “Americans love their cars”:
1. There is no viable mass transit infrastructure in most cities
2. Municipalities are slow to build new transit
3. New transit is usually diesel consuming buses, since they are easy and rapid to deploy
4. Americans, especially those with families, aren’t sure how to use the system properly (assuming it did work)
5. Most cities aren’t used to car pool / car share programs (these save a lot of gas)
6. “Gas guzzling” cars get more advertising time on TV, Americans incorrectly think “fuel consumption == performance”