$ gas prices = WOW!

[hebe]

ETA: high prices are ultimately a win/win: high prices bring stable employment to the oil economy, but also enhance the viability of alternatives. If we look at this in terms of decades, I do believe high prices are ultimately beneficial even if the short term pain is extreme in the transition...

I agree completely that higher prices enhance the viability of alternatives. I think the point about bringing stable employment to the oil economy is good if you are in a region or industry directly related to oil. What we are seeing in the bulk of the UK however is the situation where families are spending more on fuel than on food. I think something over 60% of what we pay for every litre goes directly to the Treasury in taxes, so the govenment is certainly not losing out, despite its notional drops in duty. As oil prices continue to rise we are looking downstream at higher public transport fares, and are already seeing higher prices for both food and non-food items - those that are derived from oil are costing more to make, and they are all costing more to transport. In the midst of joblosses, pay-freezes and ongoing austerity measures it is sadly difficult to see higher oil prices as an entirely good thing. Much as I enjoy seeing literally scores more cyclists on the road as both petrol prices and temperatures climb.

This thread has been both interesting and educating. I'd never have known that US fuel was so much cheaper because of tax dollar subsidies.

[jobob]

This thread has been both interesting and educating. I'd never have known that US fuel was so much cheaper because of tax dollar subsidies.

Sorry if what I said was misleading; all I know is that gas companies do get very large tax breaks and subsidies from the US gov't. Whether that is actually why the cost of gas is lower in the US than in the rest of the world, I have nary a clue.

[Mr. Bloom]

I'd never have known that US fuel was so much cheaper because of tax dollar subsidies.

Contrary to what some have implied (but not supported), this is not true. There are no subsidies to oil any different from other businesses in the US or elsewhere under standard accounting rules and normal standards of determining taxable income. Example: some say it's a subsidy to allow an oil company to expense their exploration costs (thereby reducing their taxable income)...but they don't make that same argument saying a technology company is subsidized when they expense their R & D. In the same way, allowing an oil company to use a highway built for the general welfare and use of others is not a subsidy...but some wrongly argue it is.

Differences in gas prices in different countries are more heavily influenced by taxes, refining capacity, distribution network, and shipping costs.

Eta: I was typing while jobob was posting...I appreciate her clarification

[westtexas]

Contrary to what some have implied (but not supported), this is not true. There are no subsidies to oil any different from other businesses in the US or elsewhere under standard accounting rules and normal standards of determining taxable income. Example: some say it's a subsidy to allow an oil company to expense their exploration costs (thereby reducing their taxable income)...but they don't make that same argument saying a technology company is subsidized when they expense their R & D. In the same way, allowing an oil company to use a highway built for the general welfare and use of others is not a subsidy...but some wrongly argue it is.

Differences in gas prices in different countries are more heavily influenced by taxes, refining capacity, distribution network, and shipping costs.

Eta: I was typing while jobob was posting...I appreciate her clarification

In addition to this, we must all remember that the oil companies we routinely buy gasoline from in the US (Shell, Exxon, Chevron, etc.) control a VERY small portion of the world's oil supply. They have very little influence over the final end dollar amount of a barrel of oil and thus our prices at the pump.

I remember a few years ago when prices rose a dollar in a few weeks and everyone was talking about the prices like we are now. On Facebook, there was a huge "group" that claimed we should boycott all Exxon stations for one day to make them lower the prices. My father told me that Exxon (one of the largest companies) controls about 3% of the world share of oil and that boycotting their company (or even all the major companies in the US) would effectively do nothing.

It's just interesting to think about how small the consumer is in all of this.