Wednesday, May 16, 2007

High Gas Prices Have Not Curtailed Driving

With gas prices over $3.00 per gallon, most experts expected to see a decline in the amount of driving being done by motorists. That decline has not materialized.
The rising price of gasoline has certainly increased the amount of complaining from drivers paying $3 a gallon or more to fill up their cars, but it so far has done little to curtail how much people are driving.

That's the message from government statistics showing that demand for gasoline is only just starting to level off even as refinery outages and tight supplies have sent pump prices soaring by 43 percent since the end of January.
It is hard to see where motorists can make changes to their habits that would allow them to limit their driving. Driving to work is a necessity for most as the public transportation systems do not have a large enough reach to make them a viable alternative. With more and more people living further away from the employment centers due to the high cost of housing, options become limited. Adjustments to spending are more likely to take place as a result of the high cost of gasoline. I believe we are reaching a perfect storm in our economy. With the housing market crumbling and energy inflation running rampant, the only place to go is down. It is time for a windfall profits tax to be placed on the oil companies who are raping the consumers and laughing all the way to the bank.

No comments: