Gasoline in US Still a Bargain
April 29, 2008 by Jean Mercedes
Filed under Leadership
Now that gasoline prices in the US are higher than $3.50 per gallon, consumers and the government are beginning to act. US markets for SUVs and light trucks are down considerably, as consumers look at smaller models, including the new smart fortwo. After years of no action, the US government has announced new regulations for the CAFE (Corporate Average Fuel Economy) to improve fuel consumption.
But if you think you are paying too much at the pump, take a look at a few prices around the world.
China $2.77
Japan $4.80*
Germany $8.68
*In Japan, the price was $5.60 per gallon until the end of March. On April 1, the government cut its gasoline tax to $1.06 per gallon, from $1.97.
What do you do to cope with the high gasoline prices? Do you drive less or will you buy a more fuel efficient car?
Source: The Oil Information Center (Japan); Allgemeiner Deutscher Automobil-Club (Germany); Automotive News
Image from inglis.house.gov
In the Philippines, it comes out to about $4.30 per gallon and rising. It’s not just the cost, but the traffic which makes you bleed. There is now a boom in scooter sales.
The fact that reports of record profits for the first quarter for the oil companies are beginning to come in means more of the same - we’re being ripped off and they don’t care, regardless of where you live.
@Ren - wow, $4.30 in the Philippines! I wouldn’t have guessed that. That tells me the government must add a lot of taxes, would you agree?
@Mark - you are right - it’s business as usual (bau). When demand is high you can make a lot of money. Similar situation with the global rice market currently. Speculators trying to make quick profits have driven those prices up. That one bothers me more than gasoline - people are rioting because they can’t afford basic foodstuffs.
From the imported crude to the gas pump are layers of expenses –transport, storage, some processing, wholesaler, etc. At each layer, cost & profits & value-added taxes are loaded –all charged to the end consumer. And, Mark is right –oil companies keep making inordinate profits. I wonder how much of the dollars we put in our gas tank is gas & how much is somebody’s scam.