This week gas hit and quickly passed the US$4 a gallon mark. It was in the mid $2.50s when we arrived here in Feb last year. A combination of the decrease in value of the US dollar and an increase in crude prices has pushed it to this level. This is equivalent to about A$1.11/litre, which is still cheap, but not as cheap as the 70c a litre we were initially paying.
For some reason, the $4 price has hit buttons here, passing a psychological barrier. SUV (4WD) sales are plummeting and small car sales and hybrids are finally becoming more popular here. Common Sense tips like combining trips (e.g. shopping and picking kids up in one trip, as well as using public transport), and using public transport are appearing in the papers, radio and TV.
None of this is news to anyone living in Australia or Europe, where it is 50 to 150% more expensive (I recently paid the equivalent of US$9/gallon in Europe). It is predicted to reach as high as $5/gallon by the end of summer.
