Gas prices now are about twice what they were in early 2008. People are so used to paying $3.50 for a gallon of gas that it has become the norm. I even had my wife say some about how “cheap” gas was when it dropped locally below $3.00 per gallon last year. Hmmm…..
With the continued unrest in the Middle East and the rest of the world it got me thinking: What if gas climbed upwards of $5.00, $8.00, or even $10-$12 per gallon? How would I handle it in the short term and what would the long term effects be?
My first thought? I don’t have enough. Storing away an extra 30 gallons along with what is already in my two vehicles at any given time would provide some cushion but not much. The reality is in the short term if prices were to drastically go up I am going to pay the price and reduce cost elsewhere. I have to get to work regardless. Trips would be fewer and selective as to what is done while out burning expensive fuel.
Those with smaller economy cars that get good gas mileage will have an advantage due to lower expenditures for the same distance driven. My vehicles get 17 mpg and 13 mpg. I am behind the eight ball when it comes to miles per gallon.
Motorcycles would also be great vehicles in a high cost fuel environment.
I’m screwed. I have several mountain bikes. If high cost fuel became the norm – and I am talking upwards of $8-$12 per gallon – it would have a huge impact not just on personal transportation cost but on goods and services as well. Most all items bought and sold are transported via truck. Fuel costs double, triple, or worse the cost of those items will increase dramatically as well. Think wages will increase at the same rate? I don’t. I could see the beginnings of an economic collapse due to this.
The dollar would buy less and less. Everything becomes more and more expensive. People purchase much less thus businesses receive decline revenue. Businesses shut down or reduce costs (lay people off). Unemployment skyrockets.
One domino falls and pushes over another one…..and another….and so on.
Long term a fuel efficient vehicle would be very valuable in adapting as well as much larger fuel stores. Should the crisis last long enough getting back and forth to work would be the last of peoples worries.
So – how much gas do you have stored?