rising cost of gas

Gas prices are never going to go down again (long term). We have already tapped half the supply of available oil. While there is still lots left, we have already obtained that which is easily extracted. The rest will cost more and more to extract. Add to that the new demand for oil in Asia, and most economists predict gas prices of $5 per gallon in the next decade.

The traffic problem may actually get better as more people do a cost/benefit analysis and decide that maybe it is not so bad to commute in with Becky from Accounting and Joe from Human Resources.

One thing to munch on: slugging depends on horrible traffic. If the roads aren't clogged, drivers aren't going to want to use the HOV lanes. There may come a time where the driver's motivation will be a little tip from the slug rather than HOV.

who tips at starbucks?

:'}

A slug paying for a ride from a slug line is a severe breach of long-established slugging protocol. Don't do it!

Keep on sluggin'! [:)]

Then I add to my previous post of May 6th that not only are slugs part of the solution to save gas, they (slugs) could also be part of the solution for paying tolls in the future.

quote:

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Originally posted by wahoowa
[br]FYI, WashingtonDCGasPrices.com is reporting many stations with $1.999/gallon regular in Woodbridge and Dale City. Yippee!

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AAA publishes an article every year on the cost of operating an automobile.

http://www.csaa.com/global/articledetail/0,,1008010000%257c5173.html

IRS allows $0.405 (40.5 cents) per mile. AAA figures the notional cost at $0.561 per mile.

AAA reported six cost categories:

Depreciation: $3,879/year
Insurance $1,288/year
Fuel $1,288/year
Maintenance $885/year
Finance $739/year
Tax/Registr $355/year

AAA does not report the amount of time wasted. Texas Transportation Institute does that.

http://mobility.tamu.edu/

Slugging can save in every category except taxes and registration. Drive less and the car depreciates less. Drive less and the risk exposure goes down. Drive less and the car uses less fuel and requires less maintenance. Apply that savings to pay off the note quicker.

You might take a look at your own transportation finance. Especially if you are trying to figure out how to finance your children's college education.

Of interest is that fuel and insurance are about the same. Lots of people drive miles out of their way to get lower price fuel, but take little action to make the roads safer. Safer roads is what drives down insurance costs.

The TTI study attributes about half of the congestion to crashes. Make the roads safer and reduce the crashes.

Is this a good start for a national transportation policy?

The downside is that people on the receiving end of the cash flow aren't going to give an inch. Buy a new car now and keep the depreciation going. Even though there isn't a decent road to drive it on. ;P


dickboyd@aol.com