Wrap your head around these numbers:
In 2015, 89 million new cars will be sold.
In 2020, 102 million new cars will be sold.
In 2025, 112 million new cars will be sold.
Common sense says that as demand increases, unless supply increases to match it, the price of something will go up.
Globally, developing countries are building roads and selling more cars. New gas stations are popping up all over the world, eager to sell gas to drivers.
All those gas stations wait for tankers to resupply them, and the longer they have to wait, the more people are willing to pay for the gas that eventually arrives.
Because developing countries are new markets for automakers, their customers are people who have never bought a car before. They’ve never needed to buy gas before.
But soon they will.
And make no mistake, this no wild conjecture, or speculation, or fear-based Doomsday scenario of an apocalyptic, Mad Max style future.
This is just math. And logic.
More cars using more gas means that competition for gas will rise, and so will the price for a gallon of the stuff.
What can you do? For starters, you can drive a more efficient vehicle. One way to offset the price increases of the future is to minimize how much fuel we burn. An efficient, lightweight car (using hybrid or electric power) is an effective way of slowing the growth of demand.
Second, you can keep your current car in better shape. Get it tuned up and not only will it perform better, it will operate more efficiently, too. So check your tire pressure, remove excess weight, and get that engine light checked.
Finally, it’s no secret that newer cars, on average, are more efficient than older cars. So long as you’re not buying a huge gas-guzzler, a newer car can help you pay less for gas, now and in the future.
Share rides with people and combine shopping trips throughout your week. Your wallet will thank you. And check out what one of our other blogs is saying about how cars will change by 2025. You might be surprised by what you find out.