The economics of gasoline protests
I thought I’d take a moment to point out, since I’ve gotten a bazillion IMs and emails about it, that the proposed boycott of gasoline pumps on May 15th makes absolutely ZERO economic sense, nor will it have any impact on pump prices.
Basic facts: gas stations buy gasoline deliveries like investors do, on a futures and spot prices market. Shipments are brought in that refill stations between 7 and 10 days apart, sometimes somewhat quicker if it’s a busy station.
Deferring a gasoline purchase on one day simply pushes demand to the subsequent days, because unless you stop or decrease your driving, your gasoline consumption will not change in aggregate, and therefore neither will the price of gasoline.
Want to do something EFFECTIVE on May 15th? Want to make gasoline prices CHANGE? Do these two things:
First, inflate your tires to the maximum safe pressure recommended by the vehicle manufacturer. For my car, for example, this is 38 psi. The dealership sets the tires at 28 psi because it gives the perception of a smoother ride at the cost of more fuel. Inflate to the max safe pressure, and keep your tires at that pressure year round. Cost: free. Savings: you can boost your gas mileage by 10% - 15%. If everyone committed to maintaining tire pressure for a year, you WOULD decrease gas demand by 10% - 15% - not a small chunk of change.
Second, to benefit the overall energy situation, change out one incandescent light bulb with a compact fluorescent bulb. Overall reduction of energy usage frees up resources and contributes less pollution.
Make May 15th have some meaning, and protest effectively with steps that make a real economic difference.
Pop it on clipmarks too!
http://clipmarks.com/clipmark/16FE1C55-CD97-48EA-AFE9-D6293A029E64/
May 11th, 2007 | #
First, inflate your tires to the maximum safe pressure recommended by the vehicle manufacturer. For my car, for example, this is 38 psi. The dealership sets the tires at 28 psi because it gives the perception of a smoother ride at the cost of more fuel. Inflate to the max safe pressure, and keep your tires at that pressure year round. Cost: free. Savings: you can boost your gas mileage by 10% - 15%.
Just to clarify further — only inflate it to the maximum that the vehicle recommends, not the tire manufacturer. The tires may support something upwards of 50psi maximum on the sidewall, but the vehicle’s antilock brakes, traction control, and many other features are calculated with the recommended amount in mind. It would not be good to save 10% on gas, yet increase your panic stop distance by 10%, and end up in someone’s bumper.
In most cars, the recommended levels can found on a sticker under the trunk lid, on a sticker at the end of the driver or passenger doors (the stile, or “butt” of the door), or in the owner’s manual.
May 14th, 2007 | #
Excellent tips.
When I stop in on the 15th to fill up my tank, I will also check my tire pressure - thanks again.
May 15th, 2007 | #
Actually for tire pressure, check the tires themselves if they are not the original tires that came with the car, as some tires may have a different pressure rating, though they may be the same size. Also it increases tire life, and thus lessening the pollution caused by tire production and disposal. Another thing one can do to increase fuel mileage, avoid fast acceleration as it will peak your RPMs more, thus increasing fuel consumption rate.
May 16th, 2007 | #