We're all going to feel it

This morning I woke up from a dream that I'd bought a Mercedes G Wagon, the preferred wealthy housewife car of choice. I knew it was a dream even when I was in the dream because there’s no way I would drop six-figures on a singular automobile. Did that once, enjoyed it, not YOLO-ing like that again. To comfortably afford a car priced in the six-figures, you really should be earning well past the quarter-million mark. Unfortunately, my salary is closer to zero than it is closer to $250,000.

I am happy and grateful for what I already have: the perfect two car solution. A MK7 Volkswagen Golf GTI for the utility factor, and a Mazda MX-5 Miata for pure driving fun. Both combined cost less than what I paid for a brand new BMW M2 back in 2019, which is saying something given the abject inflation that’s gone on since then. Is this German and Japanese duo the ones to ride into the proverbial sunset? Difficult to predict, the future is (Yoda). I’m just really satisfied right now.

And thank god neither of my cars run on diesel. Thanks to the ongoing war with Iran that was supposedly going to end quickly, the oil shock stemming from the Strait of Hormuz closure is finally materializing fully. Here in California, it’s over $8 for a gallon of diesel! Even if you don’t have a personal diesel vehicle (thanks, Volkswagen diesel-gate), the repercussions of such high pump pricing will directly affect your wallet. Commercial transportation is hugely reliant on diesel. Cost of goods sold will continue to trend higher because the cost of shipping is increasing.

Never mind that petroleum is an ingredient in so many products that you wouldn’t think of. As if the AI build-out inflation isn’t already bad enough…

So you EV owners can’t sit there too smugly about your cars not using gas. Though they can be slightly smug at the news of Costco rationing the sale of motor oil and raising prices due to shortages. (The upcoming annual oil change on the GTI is going to cost nearly $100 in materials alone!) But, the downstream negatives of the oil shock will affect us all. This collective hurt is quite the revenge on the individualistic streak so prevalent in American culture.

Klarna pay-in-four at the gas pump, when?

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Here we have the GTI in its natural habitat.

Under pressure

Mustn’t forget to check your tire pressures periodically! Even the most sealed up wheel and tire combination will lose air overtime. Especially those us driving around in internal combustion cars. In these troubled times of exorbitant gasoline prices, every bit of conservation helps. You are figuratively throwing money away if the car is running lower than optimal tire pressures. Friendly reminder the prescription is on the front driver door jam.

I wonder how many people who can otherwise install chargers at home are kicking themselves right now for not having an electric vehicle. Notorious PG&E shenanigans aside, the likelihood of electricity rates going up 25% over a span of weeks is practically impossible. Not so, as we are seeing with gas prices. Fully electric vehicle owners are sure to be pretty smug right about now.

If this war with Iran goes on for long enough, the paradigm of how the United States view EVs might permanently switch to the positive. The federal EV tax credit expiration was a setback for growth. Those that want an EV probably already bought one. However, consistently elevated gas prices can be incentive enough for those outside the fence to consider opening the gate. Especially those with considerable commutes.

Ride-share and delivery drivers, too. There’s no way the apps are benevolent enough to raise the prices - and therefore the commission for the drivers - to accommodate the sudden spike in gasoline. Nor would customers be cognizant enough to tip more. So the workers will just have to eat the additional, not unsubstantial, variable cost. When the margins are already purported to be minimum wage levels, who’s going to deliver DoorDash to make zero dollars?

Those food delivery drivers already on those zippy electric scooters must also be pretty smug right now. President Trump got rid of the EV tax credit, but his war with Iran just might re-reverse the tide of adoption. The longer the Strait of Hormuz is closed, the more of an accelerant it is for Americans switching to electric motivation.

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Playing field.

Oil shock

Owners of electric vehicles must be feeling pretty smug right about now. With the Strait of Hormuz closed thanks to the American President irrationally ordering an attack on Iran, petrol prices have climbed significantly in the past month. And it’s only going to get worse until there’s truce.

I’m so glad I do not have a car commute. Though if I did, I would have purchased a fully electric vehicle a long time ago. EVs are the perfect commuting appliance. The lack of combustion engine means a super quiet cabin. The torque innate to electric motors makes zipping in between traffic gaps a cinch. There’s far less maintenance items for an EV compared to an internal combustion car. The only negative is that, for those who can’t charge at home, you’ve got to wait a bit long to “refuel”.

But you’d rather have that, wouldn’t you, than paying for stratospheric gas prices. If your livelihood is car-dependent - ride share and delivery drivers - and your car uses petrol, it is currently not a very good time. Fix cost per mile has shot straight up. Another smug feather to the cap of Waymo. Their fleet of self-driving taxis is fully electric, therefore insulated from the inflating gas prices. I reckon the human taxi driver as a profession is slowly going towards extinction.

The taxi driver that drove us to the airport in Guangzhou was not feeling the gas price pinch. Because his car is fully electric. China has successfully weened itself from internal combustion vehicles. Can’t have an oil chock if you’re not dependent on oil! Perhaps it will prove shortsighted for the United States government to roll back on its EV incentives and infrastructure spend. If not for air quality, do it for oil independence.

That said, even if you drive an EV, this turmoil in the oil markets will touch you and all of us eventually, one way or another. Way too many things are dependent and correlated on the stable availability of petroleum. Gas prices is only the tip of the iceberg we can easily and initially see. There’s surely more pain to come in many other areas. I should book that flight for my fall vacation before airlines raise ticket prices…

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Good luck charm.

Induction is best

Let me get in this great debate in the culture war regarding gas versus induction stoves. I absolutely love my induction stove. This $50 piece of kit from IKEA - at least it was that price back when I bought it about two years ago - continues to serve me splendidly. Induction is perfect for my tiny studio because it only heats the cookware, and not the surrounding air like a gas stove would. It eliminates the risk of gas leak as well; I’m glad my room isn’t even plumbed for it.

Not to mention that on a per unit cost, electricity is far cheaper than natural gas. The latter seems to be even costlier than usual this winter. This is why heating a home cost a ton of money during the wintry months - central heat boilers use natural gas. A friend of mine stopped heating up her entire two bedroom apartment because the bill from December was shockingly high. My studio is tiny enough that a portable electric heater suffices for the truly cold mornings.

I do conceded that a proper gas range can provide far more energy. For certain types of cooking, a high flame is really desirable. Such as getting an iron pan searing hot for a piece of steak, or a blazing stir-fry using a wok. If cooking is your thing, I can see why you would opt for a gas stove instead of induction (my landlord did). And that any legislation towards eliminating gas would seem like an existential threat.

But I think there’s innovation to be had in the induction space, especially in terms of energy release to match a gas stove. There’s a manufacturer adding batteries to an induction stove to act as a rapid-release energy store, vastly improving heating time. Imagine heating up a few cups of water for instant ramen in no time - that would be the dream!

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Post rain clouds.