Wednesday, December 17, 2008

The Negative Effects of Low Gas Prices

I think most people now would be really relieved that gas prices are on a 3 year low, albeit to Malaysians it wouldn't really matter as they are ripping off RM16 million a day off us. Anyhow, across the sea to the US of A, gas prices are less than half of what I used to pump a few months ago. During that 'good old days', gas prices was so bad that demands for alternative fuels sprang up, where the most popular alternative was electric propulsion. For those who really can't figure out, it means electric cars.

Ever since the fall of gas prices, the sales and interest of electric cars fell as well. Heck, since gas is so cheap why bother with the electric cars which is generally more expensive and has limited distance. The answer is very simple, and that gas prices would go up again.

The problem with us human beings are that we fail to see things long term. It takes a very wise man to envision the future. For the rest of us, we're just rejoicing over cheap gas, like I myself. My immense interest and research towards electric cars suddenly comes to a screeching halt and it has been months since I read up an article about those companies like Aptera and Tesla. I can safely assume that the average person would had all but forgotten about those electric cars as well.

So there you go, our addiction to oil is here to stay and hopefully those electric car companies are able to withstand the economy downturn as well. While typical companies benefit from low gas prices, it means less interest on electric cars which are typically more expensive than the gasoline car.

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