Sunday, August 21, 2005

American Gasoline Prices


American Gasoline Prices



Nothing but supply or a fall in demand will reduce American gasoline prices. West Coast concumers who will pay 10-20% more per gallon minimally, face the factors of greater consumption and compounded metropolitan delivery. Addressing greater pipeline access from environmentally friendly refineries and porting facilites of expand supply, and common sense use will slowly mute the complaints.

Meanwhile -- for the ten dollar amount purchaser --the cost will be twelve dollars; for the $62 dollar luxury car fill-up the cost will be $5-7 more.
For the merchant and consumer .. true business product cost calculation will be its own rewarding disclipine. Consumers aware of 'millage' or 'pennies' in full cost increases can shop arond against the pretextual energy cost 'feint' price rise. Does the $5 per delivery car tank cost really mean a $1 or $2 surcharge on the pizza? etc.

Commuters will do what 'metrosexual's 'cosmopolitans' etc have doen for decades -cheapen their cmmuter costs and save other energy for a greater luxury --whether mass transit or a down sized car.

Unstable middle east politics; weather and all are pricing factors in oil imports and supplies - whtehr dropping or stabiizin at an even price -the factors are constant --Americans including energy cheap west coasters will adjust. Prices will induce technology to reward the consumption of individualized transport in the USA and portable fuels. Given the price and historical odds -- no wonder Saudis look welcomely to a future in investment banking lke the Swiss .. their oil will not deplete in their nor our lifetimes - but demand for it will fall.

My old 'angst-kicker' may also help -- correlate the price per gallon of gasoline to the hourly minimum wage. Apart from a brittle $10 dollar budgeted alottment- its not that bad. Americans work five hours for an average car fill-up .. Europeans and many Asians at their prices and our wage would pay four or five times that.


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