Monday, November 12, 2007

Gasoline Prices are Still Cheap

So we're heading to $4 Gas?

It's still cheap! Not just by the inflation adjusted measure, but by the Porkopolis GIC (Gas is Cheap) indicator.

Here's the simple methodology to confirm the GIC indicator on your own:
  1. Drive down any multi-lane interstate road with a speed limit of 65 mph or more.
  2. Set your cruise control to the posted speed limit.
  3. Sit back and count the number of cars that pass you.

The passing cars are an indicator that gasoline is still cheap and people value their time more than the cost of the extra gasoline they're burning at the speeds above the speed limit.


Related: If you buy bottled water, you can't whine about the price of gasoline

Update: Revisiting the Porkopolis GIC (Gas Is Cheap) Index


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