Here's my issue. It's very basic and it does not require much knowledge on how gas prices are derived. When the price of oil, per barrel goes up gas immediately goes up, supposedly because of the price of oil per barrel. When the price of oil subsequently drops, all the sudden the economics behind the price of oil are really complicated and the price per barrel suddenly isn't the issue. Somebody is full of shit. That much I am sure.
Ha you think taxes are too high! We pay 80p+ in tax here per LITRE (where I am now It's roughly $10 a gallon). Three quarters of the cost here is tax at least, though a lot more people use railways/public transport here
I wouldn't mind so much if all the fuel tax/road tax/ whatever went into improving services for travelling/motorways/transportation etc but it so obviously doesn't and goes to fund governmental pet projects.
Here's my issue. 3 years ago when oil was $150 a litre it was 1.18 a litre. Now it's $110 and 1.38 a litre. It was 1.18 when it was 90 dollars a barrel. and I agree with what pat said.
^^ This^^ People always forget this. Crude oil is NOT gasoline. It is it's own product that has it's own supply and demand schedule.
In fact - If you take the view that the supply/demand for the final consumer good is what drives the price for the inputs(as almost all economist do) then what we should really look at is the price of gasoline and from there "determine" the price of crude. ie - the price of gas has gone done ergo the price of crude should go down - not vise-versa.
Actually gasoline is made entirely from crude oil. Oil is refined then fractionally distilled and gasoline is one of the components that comes out of the fractional distillation process. They just add some cheap ethanol to it now-a-days to appease global warmers...er I mean climate changers and make our vehicle engines unhappy.
Also keep in mind what your first source says: 'On average more than 51% of money spent on gasoline goes to crude oil suppliers' - The largest crude oil supplier is the terrorist organisation OPEC: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
He said it was one component in the price - not one component in the actually physical gasoline. The price of crude is one of the hundreds of factors that would affect the price of gasoline ( look at the income statement of a refinery , they have more than just the expense of the crude oil....)
of course just like every one else , it is my opinion that oil is getting harder and harder to obtain ,there will come a point that it is a glaring reality and it would be wise to prepare to a smoother transition.
A figure I have heard recently was that Corn right now is worth more than $3 a bushel , just to burn.
I looked for a youtube that took a Mathematician view on oil, his view was consumption is going up and discoveries are going down, he said %7 increase would translate to doubling of consumption every 10 years . With realistic discoveries going down , we are standing in a short line to be short of oil.
And our "economics expert" surfaces again.... A. It's not the taxpayers money, it belongs to the oil companies. The taxpayers have no more right to it then they do to the wheels off your car. B. It's not the job of any corporation to serve the public interest. It is their job to maximize the return for their investors. They have done a fantastic job.
A large portion of the price fluctuations is due to the fluctuations in the value of the US dollar(which is driven by the Fed Reserve). So in part you are correct (amazingly enough).
Which contradicts the statements you made in another thread when you wnet on your peak oil thoery rant, but we don't need to go there.
And as the price increases, alternative sources will become economically viable, and and the problem will be solved. Of course this cannot happen if the gov't is manipulating the market by punishing one sources of energy while subsidizing another.
Like I said, when crude goes up, so does gasoline. When crude goes down, gasoline doesn't. When crude goes up, we're told that it's because of price of oil per barrel. When the barrel drops, suddenly, there's a lot more components to the price of gas and the barrel is small issue. Just sayin'... Somebody somewhere is full of shit. On one side or the other, but somebody is sandbagging.
The price of diesel is much higher than gasoline, all while two gallons of farm diesel are derived from the same stock that creates one measly gallon of unleaded gasoline. I personally agree with pat, someone is full of shit. Back in the '90s diesel was significantly cheaper than gas, now the inverse. Why?
Someone please explain to me why I must pay the same highway tax as an eighteen wheeler which obviously wears groves in the road surface. I would honestly like to understand these conundrums.