In our RV trek to the Northeast late last summer, we were paying close to $5/gal in Canada. Even in the US, we were paying close to $3.50 when we started the trip.
Then, when we were driving home in early October, prices were already coming down. Seeing W2R's photo in an earlier post reminds me of the photos my wife snapped of the gas station signs as we made our way home. So, I just looked them up now: $2.88, then $2.79 on Oct 9. And I thought those prices were unbelievably cheap.
Only people who drive gas guzzling RVs can appreciate the pain of $4 or $5 prices. And my tank is only 55 gal. I read the blog of a guy with a truly big class A of literally the size of a Greyhound bus (it has two levels). Its tank was something like 200 gallons. Then, he got tired of RV'ing and bought a boat. Its multiple diesel tanks added up to more than 1000 gallons, and I don't remember the exact capacity.
I recently read that gasoline demand is highly inelastic. It takes a price change of 20% for the consumption to change 1%. Most people do not drive more to take advantage of lower prices, nor can they easily cut back if prices go up. But that is true only in the short term. Longer term, they will buy faster muscle cars or bigger SUVs, plan more RV trips. I already read that sales of SUVs, vans, trucks have gone back up to 55% of new vehicle sales.
Yep, it's simply the matter of time before people come crying to their politicians that oil companies are gouging them with expensive gas prices. Then, we will have inquiries, congressional hearings, etc... Something never changes.
