Is $4/Gallon Gas Changing The Way People Travel?
In my last post, I wrote that the majority of people don’t care about the cost of fuel. I even gave a few personal observances to back up my position. In regard to the region I live in, I stand by my assertion. Around here it looks like it always has.
However, based on some media reports, things at the national level are changing. This as the price of gas has passed the $4/gallon average in 11 states. $4/gallon seems to be the point at which many believe that the nation’s attitude would change. Based on what I’ve been reading, it seems that that is starting to take place.
Here’s what CNN reports in regard to driving habits:
- March figures show steepest decline in driving since 1942
- Compared with last year, drivers have logged 11 billion fewer miles, the DOT says
- Americans planned to drive less over Memorial Day weekend, AAA reports
- Public transportation ridership on rise, in part because of gas prices, group says
What are you seeing in your area? Are people riding bikes or walking more? What about public transportation - does it seem like ridership has increased?
A Large Majority Of People Don’t Care How Much Fuel Costs
Over the past few months, I have paralleled the increasing cost of fuel with tips on how you can reduce the amount you spend on fuel. In addition, I have begun riding my bike to work when the weather allows to save myself money and reduce my carbon footprint.
If you follow the news, I’m sure that you’ve heard about the rise in sales of locking gas caps as people try to fend off fuel thieves. Perhaps you’ve heard friends and family venting about the cost of fuel. Heck, maybe you’ve even received one of those email forwards that calls for everyone to boycott the large oil companies by not buying fuel for a day.
I’ve heard it and seen it all, too.
However, it is my contention that a large majority of people don’t care how much fuel costs. They just like to complain.
On the days I do drive to work, I drive about eight miles per hour slower than I normally would. This puts my speed right around 62 miles per hour. Reducing my speed has improved my car’s gas mileage by about nine miles per gallon. The reduction in speed has also made it apparent how fast everyone else is going. Not to mention how many people drive alone in big SUVs.
Parking lots are also a great place to witness how little people care about the cost of fuel. My wife and I were leaving the grocery store the other day, and as we got to our car we noticed a car idling in the parking lot. Someone was sitting inside, talking on a cell phone. People don’t care.
If people cared about the cost of fuel, they would do something about it. Instead, they do as they always have done.
Perhaps the area I live in is different from what people in other parts of the country are doing. How about it? Has the rising price of gas caused a difference in the driving habits of people in your area?
Will The Tax Rebates Work? Some Say No!
Many Americans, including myself, feel that the stimulus checks being sent out by the US Government won’t work. A recent CNNMoney.com poll in which 1,000 people were polled, states that 82% of Americans think the rebates won’t work. Almost half the people said they would use the check to pay off bills, and another 22% said they would put the money in the bank.
Personally, I’m going to use my check to start at Roth IRA. How about you, what is your stimulus check earmarked for?
2 Reasons Why A Gas Tax Holiday Doesn’t Make Sense
By now you’ve probably heard of the gas tax holiday proposed by Hillary Clinton and supported by John McCain. The aim of the proposal is to suspend the government imposed 18.4-cents-a-gallon gas tax from May 26 (Memorial Day) to September 1 (Labor Day). Unlike Clinton and McCain, Barack Obama says suspending the tax is a bad idea.
While I would like to pay less for gas, I agree with Barack Obama on this issue. Here’s why:
1. Gas tax revenue helps fund the Highway Trust Fund. This fund helps finance bridge and road repairs. Without money to correct aging infrastructure, our roads and bridges could become unsafe. In addition, the people who perform the repair work could lose their jobs because there isn’t funding to keep them employed.
Decreased tax revenue could lead the government to borrow in order to finance bridge and road repairs.
2. Gas prices could be artificially inflated when people have access to cheaper gas. This is a simple economics 101 situation. Lower prices create demand and more demand drives up prices.
I found a nice gas tax holiday calculator over at JabberWonk.com. I plugged my numbers into it to see how much I might save if the gas tax holiday is approved.
Since I’ve started riding my bike to work, the miles I drive a week probably aren’t 100. However, if I were to drive to work every day, these numbers would be pretty close. Even with these higher estimates, my total savings for the 15 weeks covered by the gas tax holiday would be $9.20. In the end, I would rather deal with spending $9.20 than the issues I outlined above.
What about you? Do you think a gas tax holiday would ease the financial burden that some consumers are feeling?
I Won A Copy Of Poor Charlie’s Almanack
A few weeks back I won a contest held by JLP over at allfinancialmatters.com. My prize for winning the contest was a book titled “Poor Charlie’s Almanack - The Wit and Wisdom of Charles T. Munger.”
After 2 weeks with the book and reading the first 30 pages or so, I can say I’m really enjoying it. I hope to do a full review when I finally finish the book (501 pages).
Thanks, JLP.
A Recap Of My Earth Day Contribution
My first ever ride to work on my bike went very well. The weather was great and so was the ride. I was surprised to find that riding my bike only took me an additional 10 minutes. I guess sitting at stops lights consumes a lot of time and makes up a large portion of my regular commute.
In addition to polluting less and saving money on gas, riding in gives me an extra kick in the morning. When I get to work I feel great and am ready to go. Usually I don’t feel that way until I’ve had some time to settle in and have a cup of coffee.
As long as the weather cooperates and gas hovers around $4/gallon, I’ll continue riding my bike to work at least three times per week.
How about you? Are you changing your routine now that gas seems set to hit the magic $4/gallon mark?
Helping The Environment And My Wallet
With gas prices nearing $4/gallon in my area, I’ve decided to start riding my bike to work. Commuting to work on my bike will cost me a bit up front, but in the end it should save me quite a bit. To make the commute faster, I’ve traded in my knobby tires for a pair of street tires ($30/tire). The only other thing I need to get is a rear rack and a bag. I figure that those two items will be an additional $60.
If all goes as planned and the weather cooperates, I should be pedaling to work 3 times per week. At that rate, I’ll only have to put gas in my car every 6 weeks or so, instead of every two weeks like I do now. The time between oil changes will also be increased, saving me even more money. A great side effect is that my fitness will improve.
I’ll provide some more info after my first ride. It should be an exciting time. Stay tuned…!
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About
Just Squeaking By is a blog about my personal finances and my quest to get them in order. Read more about Just Squeaking By
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