Originally posted by joneschrIn NZ diesel is cheaper, try looking into the tax component. As the price of fuel rises the guvamint is laughing - tax is a percentage of the price of fuel.
Diesel is still refined from petroleum. It's cheaper to produce, yes, but demand is higher because it's used more in industry, so the price is higher at the moment.
You might be confusing with it with biodiesel?
Originally posted by AThousandYoungBut at least it might maintain existing levels of revenue, as the increase in pump price will generate more revenue if the tax is a percentage of the price and not a flat rate per volume sold.
I'd think you'd know that higher prices due to lower supply do not increase revenue.
Originally posted by AThousandYoungBut the higher price is not necessarily due to lower supply. In fact it is probably mostly due to increased demand - globally. Even if there is lower supply globally that does not mean that a given government will not benefit from the taxes.
I'd think you'd know that higher prices due to lower supply do not increase revenue.
In South Africa, a large percentage of our fuel is made locally from Coal but the price is set based on international fuel prices. So whoever is making that fuel is getting increased profits.
Originally posted by twhiteheadA similar scam operates in Australia where we have enough oil to look after ourselves, but we still end up paying a price at the pump that reflects the international oil price. I suppose if it were not for our own oil we would probably pay more. At AU$1.70/litre that makes our fuel about AU$ 7.65 / gallon which with our Australian dollar trading at 96.2 US cents we would be paying $7.36 US for our fuel per gallon. That surely puts into perspective the bargain basement price Americans pay for their fuel.
In South Africa, a large percentage of our fuel is made locally from Coal but the price is set based on international fuel prices. So whoever is making that fuel is getting increased profits.
A quick comparison from the CIA World Fact Book.
https://www.cia.gov/library/publications/the-world-factbook/fields/2173.html
Australia produces 572,400 bbl/day (2005 est.), consumes 903,200 bbl/day (2005 est.), exports 333,200 bbl/day (2004) and imports 611,400 bbl/day (2004) of oil.
America produces 8.322 million bbl/day (2005 est.) consumes 20.8 million bbl/day (2005 est.) exports 1.048 million bbl/day (2004) and imports 13.15 million bbl/day (2004) of oil.
If we normalize these results to our respective nations production, then Australia consumes 1.57 times more oil than it produces. It exports 0. 58 (slightly over half) of what it produces and imports 1.068 times as much oil as it produces.
The US on the other hand consumes 2.49 times as much oil as it produces, exporting 0.1259( a sliver over an eighth ) of its production while it imports 1.58 times as much oil as it produces, yet pays a pump price of (4.00/7.36) 0.5434 or 54% of the pump price that Australians would pay for the same gallon of oil. Can anyone tell me if this reality satisfies the dictionary definition of being fleeced.
Originally posted by kmax87Someone has to process Australian oil. Why should they sell it to you for cheap when so many other people are willing to pay more?
A similar scam operates in Australia where we have enough oil to look after ourselves, but we still end up paying a price at the pump that reflects the international oil price. I suppose if it were not for our own oil we would probably pay more. At AU$1.70/litre that makes our fuel about AU$ 7.65 / gallon which with our Australian dollar trading at 96.2 US ...[text shortened]... llon. That surely puts into perspective the bargain basement price Americans pay for their fuel.
Originally posted by zeeblebotI say the liberals are behind it. It stands to reason that if they don't want SUV's on the road burning up all that fuel they don't want semi tractor trailors on the road either. Soon we will be reduced to horse and carriage and all will be right with the world.
i don't get it. gas is $4.005 a gallon, and diesel is $4.762. shouldn't gas cost more? it should cost more to refine it. and i thought it would contain more energy by weight.
Originally posted by whodeyLOL...ya, the liberals are lining the pockets of the Oil industry. Exxon made 40 Billion last year. All due to the damned liberals!!
I say the liberals are behind it. It stands to reason that if they don't want SUV's on the road burning up all that fuel they don't want semi tractor trailors on the road either. Soon we will be reduced to horse and carriage and all will be right with the world.
I've heard some doozies, but man, you take the cake with this one.
http://www.realclearpolitics.com/articles/2008/06/voters_say_drill.html
"
June 10, 2008
Voters Say 'Drill'
By Lawrence Kudlow
The recent spike in oil prices and unemployment is dramatically changing this presidential campaign -- virtually overnight. The near $20 jump in oil to $140 a barrel, the unexpected half-point increase in the jobless rate to 5.5 percent (the biggest monthly increase in twenty years), and the resulting 400-point plunge in stocks has created a new campaign issue right before our eyes.
..."
Originally posted by kmax87It depends on a lot of factors.
Can anyone tell me if this reality satisfies the dictionary definition of being fleeced.
1. Cost to import. In Zambia we must pipe our fuel from Tanzania, which adds to the cost. Maybe Australia, having a low population for the area has a less economically efficient distribution system than the US.
2. Taxation structure. In Zambia, the govt adds a 100 percent tax on fuel. Maybe the US gets its tax from elsewhere (sales tax on other products or income tax). European countries also tax the fuel heavily to discourage unnecessarily large cars and other forms of fuel wastage. If the US moved their tax over to the fuel, it would result in a major shift towards more efficient cars in the US.
But at the end of the day, the US has convinced enough people that the dollar is valuable and thus can support their economy simply by printing and selling dollars. That does mean that the rest of us are getting fleeced.