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US Gas Prices Hit $5 Mark |
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Sunday, 08 June 2008 |
 Who would have thought gas prices in the US would climb to $5 a gallon? The cost of 1 gallon (3.7 liters) at $1.27 is still fresh in my memory about 10 years ago. Over the span of 10 years, that price is about 5 times over and there is no end in sight. Oil prices climbed from $21 a barrel about ten years ago to $137 just last week. That is a factor of about 7. Thus, given these trends, gas prices in the US will probably catch up with levels in Europe. That target is being increasingly used as an answer to those astonished by current price levels. However, while Europe can take those prices because of an advanced mass transportation infrastructure, the US is no shape to handle such prices. In the US, a personal car is an absolute necessity and a 1-hour commute to work is common place. An efficient mass transportation system is far from being a reality. Some people are paying more for gas than for rent. Costs of goods and services are also increasing to keep up with the increased cost of shipping. Something is going to give!
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