A Bloomberg News Service columnist is issuing a warning about the falling gasoline prices.
They aren’t necessarily good for the nation’s economy or its long-term energy policy.
Pump prices in Amarillo now stand at about $2.92 per gallon for regular unleaded gas. That’s “cheap,” yes? And who would have thought $2.92 would be considered a bargain for gas?
Barry L. Ritholtz, writing for Bloomberg.com, thinks the price reduction is going to produce a spike in driving. We’re going to forget that we have a limited supply of fossil fuels used to produce gasoline. It happens every time we see these dramatic dips in gasoline prices, as Ritholtz has noted.
Then comes the sticker shock when the next overseas crisis erups in an oil-producing region — Syria, Iran, Egypt, Libya, Yemen … they all come to mind.
I don’t want to sound like a know-it-all, but my wife and I have recently invested in a hybrid automobile. It runs on electricity and gasoline. Our Toyota Prius is our No. 1 in-town vehicle, and so far the investment is paying tremendous returns for us. We’re averaging about 47 miles per gallon and filling it up about every two weeks for a mere pittance of what we normally have paid for fuel.
Our 3/4-ton diesel-fueled Dodge Ram pickup, the one we use to haul our fifth-wheel travel vehicle? That’s another story. Won’t go there. Suffice to say it stays parked most of the time.
We’re all enjoying the relatively cheap fuel at the moment. However, I intend to take Ritholtz’s warning to heart.