High Gas Prices - A Good News/Bad News Story

Just in time for the opening of cottages and summer travel season gas prices are once again on the rise. Traditionally this would be viewed as bad news; however, perhaps in the long run it is a good news story.

If higher gas prices:

• motivate people to drive less and/or take public transit more
• encourage local shopping
• make locally produced products more economically appealing
• prompt us to look for work closer to where we live [or move closer to work]
• enjoy local attractions rather then travel great distances for vacation or cottages
• purchase fuel efficient cars

Then in the long run the world will be a better place.

Where the problem sets in is that North America has been built around the car. We have sprawling neighbourhoods often situated long distances away from shopping or employment, as well as a mindset that is blind to distance travelled.

As consumers it is our expectation to find a vast array of products and our purchasing decisions rarely factor in the country of origin. This is further compounded by the manufacturers that have a similar disregard for the distance a product must travel to reach the consumer. Who takes into consideration if the box of cereal in the local grocery store had to travel 3000 kms to get there? For the average consumer, are there any reasonable alternatives?

Finally, the rising gas prices could have the most impact on that segment of society that has the slimmest margin to overcome price increases. Higher gas prices will mean that prices for common goods increase, simply to cover the increased transportation costs. For a family that is already tight financially, even a small increase to the cost of living could have disastrous effects.

It is also likely that this is the segment of society that has the least flexibility in terms of employment options. If the only housing you can afford is a great distance away from the only job you can find, it is possible that driving, usually a beat up gas guzzling car, is the only way to get to work.

Gas prices are on the rise.

Hopefully this will prompt, especially those that can afford to pay more for gas, to decrease gas consumption and begin a foundational shift in North American's dependence on the car.