$4.00 A Gallon Gas Has Arrived

Taken on yesterday at the corner of Wardlow and Long Beach Boulevard in Long Beach, CA.



Is this really so shocking? I don't think it is that shocking except 2 blocks away there was another gas station with premium at $3.49 and people were still filling up with $4 gas just down the street! Perhaps that shouldn't be as galling to me as it is because this station is just off the 405 freeway and so people who don't know the area might not know any better. What really scares me is that there were probably some patrons who didn't notice or didn't care.

From a recent New York Times article:

The increases could not come at a worse time for the economy. With growth slowing, high energy prices that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could exacerbate the nation’s economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.

What does this mean to the auto industry? Probably sales of new cars and cars that don't get good MPG will really start to falter now but not because buyers are making good choices but because they want to not care rather than they having to be more practical.

The people who didn't drive 2 blocks down for the cheaper gas will probably still keep buying new and don't care or won't notice.

A good discussion of the NYT article is on Jalopnik.

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