Is a $1 a Litre a Bad Thing?

Gradually I think the reality is starting to set in that the price for gasoline is not going to dip below the $1 per litre mark. I expect over the coming months and years this will have a foundational impact on everyday life.

For example, if the commute to and from work each day ends up costing an extra $50/week [not to mention the wear and tear on the vehicle], then maybe taking public transit or finding a job closer to home starts to become a real option. Similarly, what if the expense of driving across town to that favourite store or restaurant starts to become a noticeable expense. Will the local stores and restaurants start become more appealing? What about housing prices in the suburbs? Could these once hot properties start to see a decrease in value because driving is a necessity to living in the suburbs?

The price of gas will also be evident in other areas such as the cost of groceries and other products. Buying local produce and products might not only be good for the environment and the local merchants, but also a matter of what the pocket book can afford.

Unfortunately, the people that are going to be impacted the most by the price of gasoline are those at the lower end of the economic spectrum. These are the people that do not have the disposable income to cover increased food and transportation costs and are unlikly to have the option of finding employment closer to home.

For years the carrot method of encouraging people to decrease their fuel consumption was used. Society's response - the Hummer! Now comes the stick.