At last, high prices have convinced people to drive less.
Thursday, July 10, 2008
By Kevin Bullis
As gas prices rose over the past couple of years, many experts pointed
out that, when adjusted for inflation or seen as a percent of average
incomes, gas was still less expensive than historical records. Their views
seemed to be backed up by the fact that gas consumption continued to rise. Some
experts said that oil would have to reach the unthinkably high price of $134 a
barrel before it had the same impact as oil prices in the early 1980s.
Now, with oil prices having crossed the $140-per-barrel mark and gas prices costing
more than $4 a gallon, the Wall Street
Journal is reporting
that people have seriously cut back their gas consumption: they're currently at
levels last seen five years ago. Now even the economists can agree that oil
isn't cheap anymore.
The high prices are also changing priorities at the major automakers. Today,
Toyota announced
that it will start to produce its Prius hybrid in the United States to help meet demand
for the fuel-efficient vehicle.
