When Is Gas Considered A Luxury?

So at what point is gas considered a luxury good, and if not now, then when should we think of it as one?

High gas prices

Where I live, gas is at $4.00 a gallon, and I started wondering what would the monthly cost be if the price continues to climb.  So below is some quick numbers that I put together in a spreadsheet to compare projected cost of gas prices in the near future.

I chose the $4 (current), $6 (some project this rate for this or next year), and $9  level  just for a good contrast.

Day Miles/Day Gas Price: $4
Monday 60 $4 $12
Tuesday 45 $4 $9
Wednesday 60 $4 $12
Thursday 45 $4 $9
Friday 45 $4 $9
Saturday 30 $4 $6
Sunday 15 $4 $3
$60
Monthly: $267.00
Day Miles/Day Gas Price: $6
Monday 60 $6 $18
Tuesday 45 $6 $14
Wednesday 60 $6 $18
Thursday 45 $6 $14
Friday 45 $6 $14
Saturday 30 $6 $9
Sunday 15 $6 $5
$90
4 weeks $387.00
Day Miles/Day Gas Price: $9
Monday 60 $9 $27
Tuesday 45 $9 $20
Wednesday 60 $9 $27
Thursday 45 $9 $20
Friday 45 $9 $20
Saturday 30 $9 $14
Sunday 15 $9 $7
$135
4 weeks $540.00

 

 

$540 a month for gas would mean that gas is a luxury for me.  At that point, I’d definitely be carpooling!  There is a great chance that I would be biking or walking more often to close destinations too (like visits to the library).

Actually, there is a good chance that I would try to carpool with more than just my buddy.  I think I would try to get 4 total people to carpool with, if possible.  By having 4 people in the mix, that would drastically reduce my gasoline cost (if not for weekends it would be by a factor of 4).

If I lived in a larger city, I would consider taking public transportation too, but since I don’t… public transportation isn’t really an option for me.  I would definitely try to push the telecommuting option though!

 

So forget the Grey Poupon, pass me a can of gasoline please!

Bests,

MR

Carpooling to Save Money and Reduce Gas Prices

During the winter of 2008, I was amazed when gas prices crept over $3.50 a gallon (not to mention when it went over $4.00).  When this happened, I asked a buddy from work if he wanted to start car pooling.  We have the perfect scenario, he only live 2 miles from my house, and his house was on the way to work for me.

The arrangement was, we would alternate weeks of driving, so for first week, I drove, the next week he drove, then me, then him…

My Benefits from Car Pooling:

  1. Lowered my monthly gas spending from $180 to $90.
  2. Reduced the wear and tear on my car by 1/2.
  3. I did my part to try to reduce oil prices by car pooling.
  4. I cut the carbon emissions I produced by half.
  5. Cut down on traffic on the highway by 1 car.
  6. Freed up 1 parking spot at work (our lot is pretty full, or was…).
  7. It’s nice to ride some mornings, instead of driving.

Once the gas prices fell to the low $2 range, we stopped car pooling at that time because of conflicts in schedules.  However, if prices creep back up to the $3.50 or higher, we said we would start car pooling again.

Near the end of our car pool trips, we both started telecommuting once a week, and that was even better!

Below is the ultimate solution to high gas prices, if the weather and distance permits (which in my case, it doesn’t).

Don

Update, I forgot to add a few additional benefits:

  • If you’re in an accident, you have a captive witness (unlikely, but still nice).
  • Forces you to adhere to a more strict timetable, you don’t want to be late or pickup your buddy late.