Gas This Summer?
The way things
are going, gas prices will probably top $5 a gallon this summer.
We may be lucky if it stops there. Some industry experts, including
former Shell CEO John Hoffmeister, believe that a combination of
bustin loose inflation and real fears about an impending war
in the Middle East being pushed by neo-con chickenhawks will push
gas over $5 per gallon by July. An actual war with Iran, courtesy
of these chickenhawks, could push prices much higher.
well be paying $7 or $8 a gallon if theres a U.S.-Israeli
strike on Iran god help us all.
was $4 a gallon gas back in 08 that triggered the economic
free-fall were still trying to pull out of today. And while
many of us have acclimated ourselves to the New Normal of $3-and-something
gas, an uptick to $4 or more is likely to have the same effect it
had back in 08 only worse because millions of people
dont have the reserve cash (savings, equity) they still had
back in 08 many dont even have a job.
It might be
a good time to start thinking about how youll handle $5 gas
before everyone else starts thinking about it.
Now, for example,
might be a good time to buy a motorcycle or motor scooter for just
in case. Rising gas prices are a good excuse to indulge
and smart policy if gas prices do go through the roof. Not just
because of the money youll save on gas, either. If the cost
of fuel continues to rise, expect the cost of high-mileage transportation
options to go up, too. Supply and demand. Simple. A used 50 MPG
bike that goes for $2,500 today might very well draw $3,500 (or
more) a couple of moths from now, in a world of $5 regular. Same
goes for scooters. They were very popular circa 08
and popularity equals pay more. Right now, its still cold
out and gas prices, though higher, are still manageable. I have
a buddy who owns a bike shop; he also sells Chinese-made scooters.
Things have been slow for the past year. If you walked into his
store today, odds are youd ride out on a good deal.
But tomorrow? What happens when customers are lining up for his
80 MPG scooters? Right. Forget about haggling. If you dont
want to pay full MSRP sticker, the next guy in line behind you will.
So, again, if youre worried about whats coming and are
considering possible ways to insulate yourself, the time is, indeed,
the rest of the article
[send him mail] is an automotive
columnist and author of Automotive
Atrocities and Road Hogs (2011). Visit his
© 2012 Eric Peters
Best of Eric Peters