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<p>[QUOTE=&quot;NorthKorea, post: 1584619, member: 29643&quot;]$5.00 gas isn&#039;t as much of a big deal as it would have been in the 90s/00s. When gas was $1.32 in 2001, we conducted a research study and analysis of what price could be absorbed before consumer habits were significantly changed. Although all customers said they would be made if gas were above $2 per gallon, even at $4 per gallon, the only noticed change was a probable (defined as at least 50% for the purposes of the study) change from supreme/premium (92 octane) to the mixture option (89 octane). People did not indicate a decrease in driving until prices reached $4.78 (8% saying they&#039;d take the bus) and $5.83 (25% saying they&#039;d take the bus).</p><p><br /></p><p>Given the shift in US fuel consumption habits, it&#039;s unlikely that $5 gas is:</p><p>A) Sustainable.</p><p>B) Impactful.</p><p><br /></p><p>A - With the US producing more than 50% of consumed fuel from US derived sources (including the Gulf), OPEC price shocks are unlikely to be sustainable in terms of pricing. </p><p><br /></p><p>B - Since the study was considered, inflation has proceeded at an annual rate of around 4.3%. Essentially, that would push the threshold equivalent above $8 per gallon. With efficiency standards much higher, it&#039;s unlikely it would matter if gasoline reached $14 per gallon, since consumers would use less gas. It&#039;d be more &quot;sticker shock&quot; than anything.</p><p><br /></p><p>If the US really wanted to curb consumption, the government should mandate that petrol companies price gasoline according to miles driven, rather than gallons used. They&#039;ll lose money on inefficient engines, which would get them to lobby for even higher efficiency standards.[/QUOTE]</p><p><br /></p>

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