It is a known fact for quite some time now that the United States of America are going through probably one its worst economic slowdowns ever. Add to that the rising fuel costs and the situation worsens further. Luckily in the last week or so fuel prices have gone down providing a bit of relief to the people. But is it good in the long term? I think not.
Fuel prices should stay up – around $4.2. Before everybody starts abusing me I would like to offer an alternative plan that’s going to provide benefits in the long term. I am no economist but one of the many who have been hit hard by the rising cost of fuel and the associated rise in cost of living.
The US consumes almost 25% of the world’s gas supply. In the present situation a futuristic energy policy is much needed. What we need is more vehicles running on alternative fuel. Yes, hydrogen and batteries are all great but they are not the best that we can use. That honor goes to CNG – compressed natural gas. It is possible to run vehicles on CNG. The current engines can still be used. All we need is a conversion kit. Such kits are quite widely available. CNG has been proven to run heavy motor vehicles like buses. Check out the CNG powered public buses that ply the roads of New Delhi, India. Not only is CNG an inexpensive alternative to gasoline its also cleaner and overall better for the environment.
Here’s what we should do. Keep the price of fuel at around $4.2 per gallon. Offer subsidized CNG conversion kits to the public. For transport companies and trucks offer gasoline at a lower price. Reduce the price of aviation fuel.
Keeping the general price of gasoline high would force people to reduce consumption. But in order to allow them the same or greater level of mobility offer them CNG conversion kits at a subsidy. This way people would still be able to use their cars and pick-ups and that too at a very affordable price.
Keeping the price of gasoline low for transport companies would help keep the cost of goods transportation low. This would translate into lower prices for consumers.
Reducing the price of aviation fuel will give a boost to the tourism industry as it would bring down the cost of tickets thereby encouraging more people to travel.
In effect by keeping the price of gas high for the general public the country as a whole can profit more.
