According to newspaper reports, the recent fall in gas prices is due in large part to consumer resistance. Americans are driving less, combining several trips to the store into one comprehensive shopping trip, using public transportation , even biking or walking rather than driving. All this has reduced consumer demand and caused gas prices to slip below the $ 4/ gallon mark. According to the experts, this change in our driving habits is likely to be permanent as the earlier steep run-up in fuel prices has forced us to take a hard look at our wasteful driving habits .
This is certainly good news BUT….
A Transportation official warned that the reduced gasoline use will result in a serious hit to the Highway Fund which is funded by the Federal Taxes levied on gas sales. This means that less money will be available for the repair of highways and bridges and the shortfall may hve to be made up from other sources.
Truly, every silver lining has a cloud.