SteveRogers

The reason gas is so much cheaper here in the US is because of our high consumption. To put it in a different perspective, we are the Wal-mart of the petroleum market. We can negotiate lower prices because of our high volume. If consumption here is vastly reduced, then we start seeing Europe-level pricing.

By the same token, if substatially more people start riding bicycles, then you can expect prices to drop after volumes go up. However, the initial supply constraint as demand rises and suppliers race to increase production capacity/volumes would cause a delay before the price drop. Fewer deals would be offered, as MSRP would become the norm.

Reality? We are a "car society" in the US. Gas would have to hit $6-$7 per gallon before Americans would dream of giving up the beloved automobile. Heck, I'd have to cycle 15 miles to catch the train every morning (in business casual!) Moving closer to work would be way too expensive right now (+$100k min) just to move closer to work. Now imagine housing prices in the city when EVERYONE wants to move closer!

Give up the car? Not gonna happen....