Are we facing higher gas prices soon?

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I won’t make any pretence at predicting gas (and oil) prices. However, Jeff Rubin, an economist with the CIBC has made accurate predictions in the past and is now predicting that gas will increase to $2.25 per litre over the next four years. If this happens, you can imaging the effect on the economy and people’s driving habits. It might even lead to more people on bikes.

The article can be found here:

http://www.financialpost.com/story.html?id=469426

There is a big concentration on bio fuels now, with western governments putting huge emphasis (and subsidies) towards the production of ethanol and bio diesel. Predictably, when food products (grains and vegetable oils) are used to fill our gas tanks, the cost of food goes up. Recent increases in the price of flour, oils, rice and the like are due in part to the increasing production of bio fuels. For this reason I am hesitant to believe that bio fuels will “solve” our gas price problems although the moral implications of this don’t seem to be on the radar screen for those of us in the West.

This is a lot of doom and gloom but there are solutions. None of them are rocket science. Here are a few ways to reduce our “mortgage payments” to the gas companies:

– plan trips – this can make a major reduction in use of a vehicle. Get groceries and other goods all at one time. Pick up big bulky items when using the car so that small items can be carried on foot or on the bike.

– use an electric bike (scooter style) for local trips (easily used 8 months a year) to pick up groceries and get around when cycling isn’t attractive.

– use a bicycle and walk as much as possible for shorter trips and when this isn’t practical use transit and share rides with others.

– Kelowna does not have a car share program – maybe it is time for a few concerned people to get together to form one.

– consider getting rid of the car and renting one when needed. It may seem an expensive option but add up the yearly costs of ownership and it can amount to a considerable number of weekend rentals. We found that we coped quite well when the car wasn’t insured – when it sits in the driveway ready for use it is amazing the number of short (and generally unnecessary) trips that can be justified.

– when looking at a new car choose the smallest most fuel efficient vehicle that will do the job. We use a utility trailer and that negates the need for a pickup or larger vehicle.

– if moving, choose a location close to services, schools and jobs. If gas prices continue to climb, out of the way properties are likely to take a price hit as the market for these properties will be reduced to those who can afford higher and unpredictable gas prices.

John.

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One Response to “Are we facing higher gas prices soon?”

  1. Buy Cheap Electric Bikes Says:

    So far after 2 months of riding almost every day, I haven’t had any problems with the ElecTrec. As far as distance, I have gone 11 miles on a charge while pedaling before I felt the battery going weak. It takes you from a dead stop to 15 mph on flat ground fast. The only negative thing I can find is the weight. It is fairly heavy with the battery. I ordered another battery and place it on a rear wheel rack so I can go further distances. This bike I can ride without worrying about things going wrong with it. So far so good

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