High Fuel Prices and Hybrids: The Cars Are Worth It

Once again I find myself driving around the Peninsula searching for gas at a price that even winks at a bargain $4.17 per gallon. I’m reconsidering my decision to let my Costco Membership expire a few years ago as part of my continuing effort to shop locally and eat organically because, with Costco gas at prices typically 12-15 cents lower per gallon, the $50 annual membership fee is becoming attractive again.

With the economy still weak from the effects of the Recession, oil companies seem to be blind to the impact of dramatically rising fuel prices. The PR and marketing departments of oil companies sight a myriad of reasons for spikes in the fuel prices, such as refinery maintenance schedules, unrest in Libya (a rather insignificant player in the global oil market), refinery conversion to summer fuel mixes, and natural disasters interrupting fuel production. Yet, with all these complications to their delivery of oil to U.S. markets, the major oil companies have once again announced huge profits in the first few months of 2011.

In last week’s address to the nation, President Obama spoke about his efforts to convince Congress to remove $4 billion in government subsidies that American taxpayers are providing to oil companies. At a time when governmental spending and the U.S. deficit are at the forefront of public debate, Obama is calling for an end to subsidies of oil companies reaping huge profits from American families.

But the future looks bleak for gas prices. Within the next decade, fuel prices are expected to increase to over $6 per gallon nationwide. So, how do we prepare ourselves for this eventuality? Are electric cars a viable option for Pacificans? Or do hybrids represent our best alternative?

For most of us, electric vehicles aren’t pragmatic. The renowned Tesla Roadster is out of budget range for most of us, while the Chevy Volt doesn’t have a driving range that makes it convenient for much more than in-town commuting. The Nissan Leaf offers the best hope for 100% electric vehicles to-date, with a driving range of 80-90 miles on a single charge. With zero emissions, the 100% electric vehicle is an environmental dream machine. The technology still has a long way to come to give consumers the option of going a long way in these vehicles, however. I’d also like to see options for vehicles that require more power such as trucks and vans. 

Hybrids, at the moment, offer the best alternative to keeping high gas prices from breaking the average household budget. The Toyota Prius has long been the most efficient of the hybrid vehicles boasting 51 mpg in town and 48 mpg on the highway. Unfortunately, it tends to be a bit more expensive than competing makes and models. According to the U.S. Department of Energy, Ford and Lincoln manufacture hybrids that achieve 41 mpg in town and 36 on the highway. Honda offers consumers a variety of efficient models with the Civic, Insight and CR-Z making the list. If you’re considering purchasing a new car, you may be wise to consider a hybrid vehicle to keep your monthly budget stable.

One thing is certain: Oil prices will remain unstable in the future as resources diminish and investing in a hybrid now could pay off with increasing magnitude in the future.