The price of gas

I don't understand at what level supply and demand comes in. I am told that this is a case of "inelastic demand" in the short run. BUT the "run" has been underway since the first time the oil companies held us up back in 1970. The race is 40 years old.

Why should anyone be surprised at $3 or $4 gas?

 

>I am most concerned about the amount of tax on gas.

Every state has different tax laws.

Why should the retail price be less than people are willing to pay? I don't buy the inelastic demand excuse, either. How can anyone who who has bought a car in the last 10 years NOT know the price of gas will rise?

 

I'm certainly not! Petrol (gas) here is £1.16 per litre. If I've done the conversions (litres to US gallons, pounds sterling to US dollars), that's over $6.90 a gallon!

 

Gasoline in the States is cheap compared to most of the rest of the world. Of course, most American believe that cheap gas is a natural right.

 

Salty, I am not sure where this right comes from, but I understand the sentiment.

I tried to add to my first statement, but could not. So here goes......

Europeans do not understand how large America is nor do they realize how bad out public transportation system is at the current time. Americans do not understand how small Europe is nor how good their public transportation systems are.

The distances are great in the US, especially for those living in rural areas and most especially for those living in the western states. Until public transportation is improved the automobile will be a necessity for most Americans/Canadians. I do not expect to see a really good public transportation system in the US during my life time. Perhaps it will never happen nor be really necessary if technology finds a way to move the automobile away from the use of fossil fuels to another cheap energy source.

We Americans do have a love affair with our automobiles and we do like the freedom they give us to move around at our own schedule and leisure. I love driving on trips. I love seeing the countryside roll by. But, in truth, I do not see it possible for gasoline prices to remain 'cheap' over the long run.

 

Gas prices would be cheap if the government got out of the way.

 

Cheaper, yes, but the term "cheap" can be misleading. A lot of the world thinks our gas is "cheap" already.

We have the oil, but congress won't let us get to it.

 

If you factor in inflation gas is as cheap if not cheaper than when I was a kid and it was 25 cents a gallon.

 

$1.09 a litre here, and that is NOT cheap on my pensions! Years ago, when it was 19 cents a gallon, we only earned $23.00 a week!

Cheers,

Jim

 

If you think about it in the US gas prices are about the same in all areas with a few exceptions. It has always seemed to me that this was out of whack. The reason I say that is because I live in a state where we have ports, oil and gas wells and refineries. This state should have the lowest prices of anyplace compared to another state that has none of those things and the product has to be piped or shipped to them. Yet I find that when I travel to states that are dependent on the Southern states their prices are about the same as ours with the only variation being the local economy.
I have been told the reason for this is that the government subsidizes their gas to keep the prices at about the same every place. In other words we in this area have to pay a little higher price to help offset their price. I would like to know if this is correct. I certainly don't think it should be, but no one asked me about it.

 

There is some price cometition in large cities but not in small towns and tourist traps. When all the gas station owners grew up together and meet for breakfast every Saturday . . . .


The way I hear it, Americans are not offered fuel efficient diesel cars because the oil companies make more money selling foreign gas in the US and American diesel fuel in Europe.

 

I still do not see where people's rights come into play with this explanation.

 

Easy Crabtown,,,Americans are really socialists and hate to admit it........

Cheers,

Jim

 

Congratulations on the "ignorant post of the day" award.


Furthermore, it is government's ubercontrol that most of us object to.

-Government regulations prohibit drilling just about everywhere.
-Government regulations have kept refineries (which is the bottleneck in the whole supply/demand chain) from being built.
-Government's "custom blends" required for different regions, seasons, etc., cause even more supply/demand problems.

Now...what was that about "Americans are socialists?"

Please.