1c down, 5c up. Got cheap fuel?

Here we go again. A new record average price for fuel at the pump. [
1 2
] With likely extra cuts in oil production and now another refinery gone up in
smoke; we’ll be heading a little more to European prices again. Ok, it’s not
that bad yet as Europeans pay about about 1 euro /
liter
~ $3.5 / gallon. EU maximum prices are government controlled
with about 70% taxes (about 16c fuel + 14c distribution + 70c taxes). The US at
least doesn’t have such a tax base
(yet?) but I don’t like the prospect. After every hike the price never drops
back to normal.

Driving less & switching to more fuel
efficient vehicles seems like a good thing. I for one am glad we don’t have an
SUV. Only: less fuel sales => less fuel tax income fore states, counties
& cities + higher transportation expenses => more fuel tax => sales
drop further => shrink supply further to inflate price some more …

Maybe it won’t spiral that bad, but every cent spent at the pump
diverts millions to billions in consumer spending from the ailing US economy
right to the oil cartels. Which can’t be a good thing. I can already hear the
airline industry in trouble again too. The cartels make billions & simply
can’t get enough of them. Cut production, add some bogus reasons, charge more,
increase revenue. Seems like a great monopoly to be in.

Wasn’t one
of the motivations behind the Iraq war to get a good deal on fuel? We haven’t
heard much about that lately, nor what Halliburton is charging the US government
(= tax payer) to import Kuwaiti fuel (while Iraq sits on one of the largest fuel
reserves in the world!). Halliburton was charging $2.5+ ~ $3 / gallon while the
general wholesale cost was less than 3/4 of a $. I wonder what they’re charging
now and if they’ll jump on the price hike bandwagon too … Maybe it’ll be in
the news again before long.

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