Gas prices in Thailand are running about 38 baht or $1.25 a liter. These prices are as expensive as the USA and sucking money out of people’s wallets faster than the cars can drive on the Asia Highway. There is no shortage of gas, but prices have been pushed up by oil speculators to reap profits from each crisis from the Middle East, despite the true cost of getting oil out of the ground is around $15.
I have predicted the end to cars for years and have been proven wrong every year, but public transit is booming in the cities and train ridership has never been higher. The end is inevitable, but suburbs without access to trains are cut-off from the malls by the price of gas.
The new suburbs of the world need cars, so how do we combat the cost of gas?
By doing nothing, because if oil was ruled by the laws of supply and demand then the price would have fallen along with the driving miles, however oil has become a speculative asset and the investors will push the price until it reaches the bubble’s breaking point.
$200 a barrel?
$300 a barrel.
$500 a barrel.
At this point there is no ceiling, since capitalism only wants profit and not happiness.