
Last Friday morning I was reading several articles in the Wall Street Journal written by economists who thought that we're finally at the point when oil prices were stabilizing and we should see a drop in retail oil prices. On the same day, someone somewhere in the Middle East said that an attack on Iran is inevitable and that caused the oil to skyrocket to $138/barrel. The prices jumped $11 in one day (remember the day when it was the price of a whole barrel?). We may not see a spike in retail prices for a week or two (retail prices lag behind market prices by a bit), but don't expect your gas bill to go down any time soon. What do economists know?
We can't control the markets, and unfortunately, living in the States, we can't just stop driving and start taking public transport everywhere (for comparison, I never drove living in Moscow, there was no need to). Our pay does not increase whenever gas prices jump, but the life is getting more and more expensive, since oil is a live blood of this country.
I don't know how you all feel about gas prices, but Becca and I are at the point when we feel it is time we do something about it. First, last year we upgraded our cars to more efficient vehicles. My Civic gets 35 miles a gallon on a freeway versus 25 I used to get from my old Prelude. Second, we are driving together as much as possible. Third, we decided to cut on other expenses by switching to cheaper cable, better cell phone plan, cheaper car insurance (yes, we actually did switch to Geico and saved 50%!), eating out less and drinking water with cereal instead of milk. Fourth, we will take less road trips this year than we used to. It's getting too expensive to drive out of town.
Personally I predict that the oil will hit $5/gallon in Northern California by July 4th. However, there are plenty of ways to deal with this oil crisis and someday we'll recover. America will finally begin using more of its own oil. We'll see more public transport in use. We'll use alternative energy vehicles. Until that happens, we'll all have to find our own ways of dealing with these rising costs.
How are you dealing with these new gas prices?