Ok, DH and I are looking to cut back. We have two cars and while both are good cars and fuel efficient, we don't feel like we need 2 anymore.

Here's the story:
We are about to close on a home that is about 15 miles from where we work. We work for different companies, but our offices are about 2 miles apart from each other. We have two cars, neither of which are paid off. One is a 2005 Toyota Prius that I bought last fall (obviously used). It gets about 48 mpg in warm weather (about 40-42 when it's cold). I can sell it for about 4K more than I owe on it. It's got 60K miles on it and the interior is light tan (shows dirt quickly). The other car is a 2005 Toyota Matrix that we bought new in late 2005. It also has 60K miles on it and it gets about 30-33 mpg. We will be lucky to break even on this car if we were to sell it. We owe almost exactly what it's worth if we got top dollar for it. It's been well maintained and 90% of the miles are highway miles. The Matrix has a dark grey interior and a removeable cargo carpet. It's also got more interior room in the back (the rear window is not as sloped as the Prius), so we can fit both 70lb dogs in back without having to put down the seat. Both cars also have a trailer hitch, but the Matrix will tow better than the Prius (more powerful engine). Also, putting a bike rack and two bikes on the back of the Prius removes all MPG benefits as it drops to about 30 mpg (the bikes act like a sail on a car that depends on its aerodynamics). Both cars handle the same in bad weather. Payment on the Prius is about $100/mo less than on the Matrix, but insurance is the same for both cars.

Which car should we sell? I know that financially, it makes the most sense to sell the Prius...but with gas prices the way they are, are we fools for considering selling the hybrid? I also prefer to drive the Prius, but I'll suck it up if we think it's smarter to keep the Matrix.

Our plan is to bike to work when we can, and when we can't, we'll carpool. If DH has to travel for work, he'll rent a car (at least, that's the plan).

Help me make the right decision!!