We see the frequently rising price of gas and shake our heads. We worry about high it will go. We think of ways to combat it, such as driving more slowly to increase our fuel efficiency. Yet many of us, it seems, aren't feeling the pinch enough to take any drastic measures.
We conducted a poll a while back on our Living Below Your Means board, asking: "What would the gas price per gallon have to reach before you actually consider driving less and using alternative transportation?" Last time I checked, 117 people had responded, and here are the results.
| Price | Respondents |
|---|---|
| $3 to $4 a gallon | 38% |
| $5 to $6 a gallon | 32% |
| $7 to $8 a gallon | 8% |
| $9 or more a gallon | 7% |
| No price too high | 15% |
That last option actually read "No high price will stop these pants from sitting and driving," and it amazingly garnered 15% of the votes. The bottom line is that even if gas prices hit $5.50 per gallon, roughly 30% of these respondents don't expect to be severely affected.
I don't think they're considering the big picture closely enough. A recent tally revealed that my gas expenses for 2005 amounted to roughly $1,000. I suspect that for most people, the sum will be quite higher; I don't have much of a commute, and I drive my car much less than the average 10,000 to 12,000 miles per year. If you paid $1,500 last year, and gas prices rise to $5.50 or more next year, you'll be forking over perhaps $3,000 or more for gas. Are you ready for that? It might mean an additional $100 to $200 per month out of your budget.
Here are some comments from denizens of our Living Below Your Means board (read them all):
Ramsfanray waxed poignant, saying, "Here's the problem. I already drive as little as possible. I have looked into alternative transportation, but it just isn't feasible. Moving isn't a workable solution right now, either, and finding a job closer to where I live has up to this point not borne any fruit. So all I can do is hope that there is enough nutrition in old clothes and roadkill for my family, since we can't afford to buy food after we fill up the gas tank."
FoolYap raised the possibility of working at home for his current employer, if he invested in faster broadband access: "... at some point, if gas continues rising, it may actually become cheaper to lease a T1 line to share than it will be to drive to work and back every day."
Xtn pointed out, "It's not just the cost of gasoline you can consider offsetting the cost of that T1 line. Also consider you may be able to get rid of one car, one car payment, one insurance premium, one set of regular maintenance costs, etc. Assuming, of course, you have two cars already. Possibly also cut the clothing budget, the eating-lunches-out budget, etc. Depending on what you can cut, it may be a cheaper solution NOW."
NaggingFool explained that she already does most of her errands on foot or by bicycle and added, "The main difference would be, if gas doubled in the next year or so, I would start asking people to chip in for gas when I drive them on long outings."
ClabberGirl noted that "I didn't vote [in the poll], because I already started using alternate transport when it hit $2. I'm using a Rideshare program in our town, and sometimes the bus. Someday I'd like to be commuting by bike."
If you're thinking of telecommuting yourself, know that a recent Associated Press article reported, "In 2005, 44% of U.S. companies, up from 32% in 2001, offered at least some telecommuting options, according to a survey of 1,043 large employers by Mercer Human Resources Consulting." The article profiled an employee of Chicago's Morningstar
What are your thoughts on the rising cost of gas and your alternatives? Pop in to our board, and share your own opinion.
For more ideas, opinions, and advice on all kinds of topics, from investing to pets to sports to cooking, take a little time to explore our rich Fool Community of discussion boards. You can try them for free for a whole month, and I bet you'll be surprised and impressed by what you see. Many people have made great friends on our boards -- drop in and see whom you meet.
Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article.
