Quote:
Originally Posted by Thunderball
By then, you're talking European prices... $2/L still wouldn't break my bank cause I drive a newer, more efficient car, and that goes for all people who can afford newer, more efficient vehicles, or have the financial wherewithal to own an expensive (and still relatively efficient compared to older model vehicles) vehicle. However, if I'm driving a clunker... paying $160+ every weekly fill up hurts a lot (especially compared to $100 every two weeks in a more efficient car), and might force people into transit, cycling and walking. Thankfully, unless Kyoto rears its ugly head, thats not gonna happen.
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My comments weren't speaking to long-term fluctuations in prices but rather why prices go up in May every year. Demand doesn't need to be brought down 25-50% to meet supply in the near-term but rather mere quarter percentage points because the pumps will run dry if gas were to be sold for 80 cents a litre today. The supply and demand curves are not a linear relationship but rather has elements of exponetial features at the extremes. Empirical evidence rather than anecdotal there.