$4 a gallon: The ripple effect

Yes, they are talking about a $4 a gallon summer in California. It's already there at a few downtown San Francisco gas stations (Southern California prices are a bit lower than those in the Bay Area). But experts said the summer could be worse than the spring unless something quickly changes (Consumer Affairs says the hostage situation in Iran is one factor in rising prices). And many see a ripple effect:

"Almost three-quarters of every community in California is served exclusively by truck. So higher prices of fuel in some trucking sectors will have an effect on the price of goods in California," said Matt Schrap, regulatory specialist for the California Trucking Association.

Comments

[TokyoRenter]

I used to Live in the LA area for over 10 years, I now live in Tokyo Japan. It is true that other countries pay higher taxes on their gas than Americans, but in Tokyo I don't HAVE to drive a car, matter of fact I barely need a car in Tokyo.

In most cities in Japan you don't need a car. This is similiar to Europe, where gas prices are high.

But in a city like Los Angeles, you NEED a car, it is very difficult to really get around without one, not impossible, but not practical or convenient at all.

LA has the worst over all public transportation system.

I love LA and California, but geesh time to bring back the streetcars or something!

[Kate]

Actually, Dave, gas prices are so high in other countries because they pay a lot more taxes as part of the price of a unit (generally a liter rather than a gallon).

And we are not providing the only demand for gas. We use a lot of it, but it's a global commodity. China is using a lot more gas than before, for example.

Historically, our gas prices have been kept low (in adjusted dollars, increasing significantly less than the cost of milk, for example). Why? Because our infrastructure is built around cars and highways. Any theoretical Bush-Enron conspiracy is dwarfed by 50 years of policy in this area.

[Steve-o]

Also, I agree with Dave.

[Steve-o]

What a suprise. Come on, who didn't see this coming? It is totally obvious that the oil cartels and oil refiners are manipulating the gas prices. DUH! So what are you going to do about it? Pay extra for gas. THat's what you'll do about it. You could take the bus, drive a Geo or a Scion, WALK, ride a bike, (get exercise and save on gas), etc, so as not to feel the pinch. You could switch to diesel and install a kit to burn veggie oil. But no one will do anything but whine and continue to do as they're told. GET BACK TO WORK, SLAVES! THE BOSS WANTS ANOTHER HOUSE ON PCH! YOU'RE NOT GETTING PAID TO READ THE NEWSPAPER! YOU WANT TO PAY THE RENT THIS MONTH?

[bg mendell]

Dave, what is the driving situation in California that I don't understand?
I don't live in Hesperia and work at LAX; I don't live in Palmdale and work
in Long Beach; I don't live in Temecula and work in Compton. My house
and condo are paid for; my cars are paid for; I have 9,920 miles on one
of my bicycles and I have no idea how many miles I have on the other
bicycle (well over 9,920 miles). Monday morning when you are stuck
on the freeway forever going to work, look over to the cars going the
other direction: trade jobs with one (or more) of them. Then, you may be able to spend more time with your children; they will not be forced to child-care
(which I am probably paying for in some hidden subsidy program). What is
your life worth? I know what my driving situation in California is, understand?

[Dave]

I don't think you understand the driving situation in California. Gas prices in other countries are so high because people don't drive as much as they drive here. It makes absolutely no sense that the prices were down considerably in the late 90's, only to rise exponentially when Bush took over in office. I am not trying to stir up a conspiracy theory, but his partnership with Enron yielded a California energy crisis that fell into the shadows after September 11th occurred. That was just one example of Bush's indirect assocation with criminals, giving corporations carte blanche when it came to business operations. Don't be fooled by the idea that gas is sparse, the Iran hostage situation, or any of the other paranoid reasons that prices are going up. If this was the case, prices should've went up during any of the other terrorist attacks, such as the 1993 Trade Center bombing, the incident with the U.S.S. Cole, the embassy bombing in Africa, and so forth. I can see where prices went up after 9/11 because of the ramifications of such a significant event, coupled with our hostilities toward Arab nations, but the prices have continued to climb at unbelievable rates not seen since the 70's. This will all end in a bitter, political fight during the summer, and perhaps it will produce a good outcome. Believe me when I say that it will surpass national security and illegal immigration as the number one crisis in America soon enough.

[JP]

That's great news!

Seriously.

Gas is too cheap, and that is one of the reasons we rely on our cars and trucks too much. High gas prices make people rethink the way they get around, make us drive less and carpool more. I know it makes me take my bicycle instead.

It is also good for the environment. High diesel prices force goods to be shipped more efficiently via rail instead of trucks. Rail companies are doing very well lately.

High gas prices have a huge impact on the types of vehicles people buy. Hybrid sales go up and SUV sales go down, and that makes life better for all of us.

I don't like paying more for gas any more than anyone else, but when gas prices go up, my alternative energy stocks do too!