I’ve been telling this to people for years. Not only is gas a small percentage of overall expenses, it’s typically a percentage of the expense of operating a car. Especially in Canda, where harsh winters aren’t very forgiving of cars that are “cheap” to operate.

Here in the US, the gas price “crisis” is actually a little more significant because of the number of people who are dependent on cheap gas to maintain their lifestyles.

It’s one thing to live 30 minutes from work in Winnipeg, you’re still probably only traveling 10 miles. But in the US, 30 minutes from the office typically means 20+ miles. And they’re driving a heavy vehicle and they operate two cars.

People are raging against gas prices, but the real problem is simply that they can no longer afford to be as wasteful.

A large car like the Grand Prix (average size out here), weighs 3,500 lbs. Put a person and gear (say 250 lbs) and that’s only like 6% of the overall weight. That means that 94% of the gas is used in moving the car not you.

Living 30 miles from the office is very expensive in terms of time, but it’s also a very long way to drag a car.

On one level, the rising gas prices get to people because they’re highly visible. But on a deeper level, they’re a reminder that we need to start rethinking the way that we build cities and communities. Of course, it’s easier to complain about prices than it is to yell at politicians to find a better way to build cities.

Guinness – smoking is bad for your husbands health!

Patrick – yes, less weight is a good one (especially if it’s off the occupants!)

Mike – you are right that rising gas prices affect almost every materal good but the article was focussing more on gas consumers reaction to the price they see when they fill up their car. Ironically the effects you mention might be costing us more than the extra money to fill up but because we don’t see those extra costs directly, it’s like they don’t exist.

Cash Canuck – of course it’s not wise to invest at the top of the cycle but I have no idea if it is indeed the top of the cycle. Regardless, the point of buying oil companies is for a hedge – if gas prices stay high then the higher share prices/dividends will help pay for your higher gasoline costs – if the prices drop then the money you lose on the stocks will be made up by the lower gas prices.

I got the hedge idea from Derek Foster – although I think it’s an interesting idea I wouldn’t bother doing it myself.

Go ahead! I’ll invest in undervalued assets. Is it wise to START investing in oil at the top of the commodity cycle?