2.4% less gas leads to 40 cent drop in gas prices! Last week’s dramatic price drop in the New York gasoline futures market shows YOU have the power to change national economies!
Boycott OPEC/Exxon/Chevron/Shell/BP Bike To Work Day in California, all.
The usual one day gasoline boycotts we hear about usually involves deferring our gas purchases by a day or choosing a specific brand to avoid. This does absolutely nothing to actually reduce the demand , which is the real reason gas prices are so high. Substituting your single occupant driving miles with something else — such as riding your bicycle, taking public transportation, telework (which is what I’m doing today) or even carpooling — reduces demand.
$4+ gasoline forced Americans to reduce their driving. American gasoline consumption dropped a dramatic 2.4% last week. This doesn’t sound like much, but it was enough of a change that New York gasoline futures dipped by nearly 40 cents per gallon last Wednesday. Gasoline futures for June delivery sold for $3.1221 per gallon. Over the past several years, the retail price at the pump has been about 70 cents higher than this New York “RBOB” (reformulated gasoline before oxygenate blending) price, so we can expect about $3.80 per gallon gasoline coming up this June. This is a national average, so your local prices will vary.
Again, the reason for the price drop is because Americans are driving fewer miles. High energy prices wreck the economies of nations that are absolutely dependent on that energy for transportation. Everybody — including those with no interest in biking to work or riding the bus — should encourage ‘alternate’ transportation modes that make more efficient use of energy. Even if you’re a selfish cuss who dismisses anthropogenic climate change and all of the environmental, health and social justice reasons to reduce automotive use, it’s in your own self interest. Last week’s 2.4% reduction in gas consumption shows that you can control the price at the pump. You have the power to drive a little less and make a difference in the national economy.
DON’T FORGET! Cycle touring book giveaway. Free and easy entry, but the deadline is just a few hours away!!!
- US EIA This Week in Petroleum, May 11, 2011.
- US EIA Short Term Energy Outlook Report, May 11, 2011.
P.S. Zero Per Gallon!
If the price drops 40 cents, than we can all celebrate and drive 2.4% more!
Well, yeah, that’s exactly what’s going to happen, but I’m trying not to be a wet blanket about it.
I also ignore a likely reason for part of that 2.4% drop: people have lost their jobs.