OK, but if they go any higher, THEN we'll cut back...

A Reuters/Zogby poll released today concluded that 40% of Americans would curb their driving habits if gas reached $3.50 per gallon. Somehow, I do not believe this. It's not that I am disputing the poll or its methodology; I dispute that Americans know what they are talking about with gas prices and how they will behave.

Gas prices in late May were already at an average of $3.23 per gallon nationwide. Assuming 22.5 miles per gallon combined economy and 15,000 miles driven per year, the annual cost difference between $3.23 and $3.50 per gallon is $180.09. That means a monthly difference of $15 or a weekly difference of $3.46.

Believe me, I complain about high gas prices as much as the next guy. We own two V6-powered vehicles (though one is a 5000-pound midsize body on frame SUV) and our "fleet average" is pretty close to 20 or 21 miles per gallon (the car a little above that, and it's driven more; the SUV a little below that, and it's driven less). I just don't find it terribly credible for people to say that they will cut back on their driving if gas goes up another 27 cents per gallon from its late-May highs. Instead, I think that the steady climb of gas prices, particularly since early 2005, has almost conditioned the American public to accept them. I actually caught myself calling $2.74 per gallon "cheap" last weekend (and it was, relative to the prevailing $2.90 per gallon everywhere else near me). Meanwhile, US petroleum consumption - in spite of high prices - is actually increasing year over year. The fact is, most people have already cut out extraneous travel from their driving and are combining trips and using

I won't talk much about advocating a gas tax at this time, but ironically, the one period when US petroleum consumption slowed or even declined in the past few years was immediately following Hurricane Katrina, when gas prices suddenly jumped $0.50 or more per gallon. It was a shock to consumers, rather than the Chinese water torture of steadily increasing prices has been for the past two years. Something sudden - like a tax - would likely have the same result.

The overall poll results about how gas prices would affect consumer behavior are:

• 40% would curb their driving habits at $3.50 per gallon
• 19% would curb their driving habits at $4.00 per gallon
• 9% would curb their driving habits at $4.50 per gallon
• 7% would curb their driving habits at $5.00 per gallon
• 19% could not curb their driving habits regardless of price

The total above is 94%. Therefore, the implication is that in spite of gas prices being near all-time records in inflation-adjusted dollars, only 6% of drivers have curbed their driving habits.

A spokesperson for AAA, Geoff Sundstrom, probably said it best when he said, "It's so hard to read what consumer behavior is going to be at higher price pionts - be that $3.50 per gallon or $4.00 per gallon - because we're all in uncharted territory."

However, given past history of the way Americans have complained, but basically shrugged off high gas prices, I expect more of the same as prices continue to rise in the coming years.

Gas Prices Go Up- American Public Prepares For Armageddon

Link

With gasoline already nudging record levels, at an average $2.971 a gallon, nearly three out of four Americans expect to see fuel prices surge to $3.50 over the coming summer - and more than a quarter of the country believes gasoline could top out closer to $4.00, according to a new survey.

Americans are increasingly angry and concerned, according to the survey's sponsor, the Civil Society Institute, and want to see something done. The vast majority told researchers from Opinion Research Corp. that they want sharp increases in automotive fuel economy standards, as well as new windfall profit taxes on oil companies, with the proceeds used to develop alternative fuels and to reduce dependence on unstableMideast oil supplies.

Awww. Isn't that cute? Americans are increasingly angry and concerned. Apparently however, Americans are not interested in actually doing anything about anything. Instead, they're busy organizing another gas boycott day in the middle of the month, which will be followed by the 'fill up your empty tank day' immediately the next day, and snapping up the usual assortment of SUVs, trucks, full size cars, and gas guzzling vehicles.

Much like the right to bear arms, the right to elect former cocaine users, and the right to invade any country they see fit, Americans have become accustomed to their right to cheap gas. The only problem is, that right is quickly going the way of the dodo. I can't wait to see the first news reports of idiot Escalade owners complaining about the high cost of filling up their vehicles. Meanwhile, in the rest of the world, 4 and 5 dollar per gallon gasoline is the norm. Go figure.

Welcome to the real world America.