Here’s something I was just thinking about and wanted to share. How and why do gas prices rise and fall. Freeman Grapevine supplies companies with fleet vehicles, we sell work trucks and larger, family sized SUVS. For each one of those entities, the cost of fuel directly affects them the most because of their size and engine requirements. Make no mistake though, the fuel economy of larger GM Vehicles is up there, if not better than, our closest competitors.

So, why are gas prices going back up? They we’re at their highest in 2008 when the price per gallon was over $4 here in Grapevine Texas. In California and parts of Colorado (and other places, I’m sure) it was over $5. It a combination of things I think. Additional tension in the Middle East with Iran can cut it’s oil supplies to the US and other European countries. Also, there is further economical tension overseas, in Greece needs a bailout and Europe has a debt crisis that adds to the uncertainty.

So, what can we do to facilitate another drop in gas prices? Two things can happen, but only one we can do ourselves. The oil industry increases supply and demand by further exploration. I’ve heard that has already been proposed in regards to Arctic regions. Of course, we have the ongoing battle of tapping reserves in Alaska and further exploring the Gulf of Mexico.

or,

We can drive less.

Now don’t get me wrong, I’m not saying don’t the that GMC Yukon Denali, by all means, get it, it’s a beautiful vehicle. What I’m saying is plan a little more to use your vehicle a little less.

When gas prices were at their peak, it was limiting the use of our vehicles that drove the prices down. Why? Obviously, supply was exceeding demand and it started a price war. It’s a very simple concept. Make the gas companies fight for your vehicle’s fuel supply. There’s no need for anything drastic that you aren’t already doing…except drive less. Make a home cooked meal instead of going to a restaurant. Carpool. Stream a movie instead of going to a theater. Oh, and I’m sure Fido would love to go on a walk, or two.

There is some good news on the issues we can’t control too. You see, economies operate like a sine curve. There are peaks and valleys of growth and decline, it’s just how capitalism works. There are good signs that we are at the beginning of a recovery. There are good signs that Europe’s debt crisis is easing and Greece’s pending bailout deal is easing financial nerves.

So, with us driving just a bit less, maybe we can initiate another gas war and help drive gas prices down. Remember, I’m a Grapevine, Tx car dealer, selling cars and trucks is my livelihood. However, I also want my customers to be informed so everyone can have the vehicles they really want.