Is It Time to Consider $5 Per Gallon for Gas?By Wayne Tompkins
wtompkins@courier-journal.com
The Courier-Journal
What would you do if the price of gasoline hit $4 or $5 a gallon? The answer will affect how you and others live.
On Monday, gasoline prices were above $3 a gallon, and they aren’t likely to drop in the near future, especially after BP said pipeline repairs could shut down the huge Prudhoe Bay oil field in Alaska for months.
So what happens if gas prices rise another dollar or two? Here’s a likely scenario:
If you are a commuter who lives in the suburbs and are now spending $50 to fill up, you can add another $15 to $30 to the tab. Those who have never before considered it, may find themselves taking the bus.
And, oh, those products that you buy at the store will cost you more as the cost for delivery rises.
Paul Coomes, an economist with the University of Louisville and resident expert on social and economic change, predicts that if $3 or $4 gasoline persists, the migration to Oldham, Henry, Trimble, Shelby and Spencer counties will slow as more people choose to live in Jefferson County and Clark County, Ind.
“Downtown projects started off being kind of this civically driven, political-driven push to get people to move downtown. It wasn’t market-driven in the beginning,” said Todd Blue, chief executive of Cobalt Ventures, which has two downtown residential projects in the works. “Gas prices, for sure, have caused a market-driven, demand-side pull for products there — both office and residential.”
Kentucky gasoline consumption remains flat and, according to a study released last week, consumers nationally are confident they can maintain their current lifestyle despite high gasoline prices.
Still, they’ve changed their spending patterns and are looking harder for good deals, according to the Boston Consulting Group study.
A nationwide telephone survey of 1,020 adults found nearly half of those surveyed believe gas prices could rise as high as $5.50 a gallon.
Hervil Cherubin of Louisville has cut back.
“I used to love just driving around and enjoying the scenery,” he said. “I used to drive to Florida, but you can’t do that anymore. I find that my budget for gas has more than doubled. I drive less.”
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