Wednesday, May 28, 2008

gas prices knocking on the door of change...?

Are higher gasoline prices starting to mean something more than filler for the 11 o'clock news?

Maybe so...
"Consumers have been shifting to smaller, more fuel-efficient cars in the last few months at a pace that has stunned the industry. January-April sales of subcompact cars in the U.S. shot up 33 per cent from a year earlier, including 29 per cent for the Ford Focus compact sedan, while overall American vehicle sales slid eight per cent."

What tangible affects of high gasoline prices have you seen?

9 comments:

melchor said...

The used market for huge SUV's has gone stagnant. Lots are filling up with them and the dealers can NOT move them.

pitz said...

I just brought an old gas guzzling vehicle of mine back into service.

High gas prices = more oil stock profits = more disposible income for me to buy gas for my old guzzlers.

If prices hit $2/L, I'll probably upgrade to a Hummer.

That's the paradox of high oil prices. Producers need to sell less of their product to purchase (import) the goods and services they need from the 'outside' world, hence they tend to consume more energy internally.

Dividend Growth Investor said...

As a result of higher gas prices, my grocery bill is increasing. And americans are finally starting to diet, which will lower healthcare costs in the long run :-)

MG (moneygardener) said...

dieting based on food costs...that's a new one..:) Whatever it takes I guess.

Michael James said...

Strangely, I'm still not seeing much of a difference in driving patterns. My commutes take as long as ever with seemingly just as many huge vehicles on the road. I think it takes a while for people to change their habits.

MG (moneygardener) said...

melchor, interesting..

pitz, you are the green anti-christ..

Dividends4Life said...

Of all times for my wife to win the argument and get a mini-van. [sigh]. I think there is money to made in this crisis. Great read!

Here's you a weird one. I was impressed with your new "comment window". As it turns out bu comment ended up being posted as an article on my blog. I think the guys and gals in Mountain View have been playing with the comment code. :)

Best Wishes,
D4L

pitz said...

mg, i was kind of kidding on the Hummer comment....but I am driving my 1956 Chev Bel-Air now, and with oil stock profits, am having it fully restored to its former glory.

Seriously though, I've noticed more people driving because of the effect of high oil prices on the economy here in western Canada, not less. But I did notice in the past few months that LA and San Francisco's freeways seem to be noticeably less congested, and getting around a lot easier.

Zeno of Elea said...

There's a noticeable increase in the number of people cycling into work. We're lucky enough to have a changing room with showers, but traffic in the changing room is certainly congested.