Wednesday, November 19, 2008

Zen and the Pittsburgh Theory on Everything: gas prices

It isn't the average price for the region yet, but the very lowest retail gas prices in Pittsburgh that have dropped below $2.00/gallon. I am pretty sure gas prices that start with a '1' are so unthreatening to most folks these days that they will forget the $4+/gallon of a few months ago. I wonder if there was anyone out there speculating on used SUV's when they were selling for a song just in the hopes of reselling them which they could now for a quick profit. Certainly would have been a better return than the stock market of late.

There was once this hysteria over how unabated energy price increases would spell the end of everything. So if you ask me, nothing is really worse than the unprecedented rate oil prices have dropped. Not for the reasons people usually have for saying that and hey, I am as happy as the next guy to pay less for gas. Yes, SUV sales are probably going to return.. but that isn't the point. In the longer run when energy prices move up again folks will a) not feel so threatened since they have seen it before and b) are likely to believe it is all part of a cycle and need only wait for prices to drop again. It is a pattern that will last until it ends. It was once the logic that folks who watched the steel industry go through periods of boom and bust would use to dismiss the need for change.


Anonymous MH said...

Gas prices are dropping along with the whole economy. So, maybe low gas prices won't result in more new SUVs sold since, from what I read, most people aren't looking to buy a car now.

Of course, $2 gas will result in more driving. Cheaper gas plus threats of service interruptions plus ridiculous crowding on the 61c are enough to get me back to driving when my name hits the top of the parking waitlist.

Thursday, November 20, 2008 12:45:00 PM  

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