I do hope you misplaced your decimal point? Demand for gasoline does seem to be fairly inelastic, but at that price I know I'd be doing a lot of walking. ;)
I must get round to writing something on so-called fossil fuel subsidies. My stomach hurts every time someone suggests that the US or European governments subsidises oil, or coal, or gas, or whatever. I wish, when I get my utility bills anyway.
There's an IEA global subsidy document - from memory something like 95% of the so-called subsidies are Iran/Russia/Arabs/Venezuelans, you get the picture, choosing to sell domestically produced FFs ('owned' by their domestic population) to their domestic population at above cost price, but below world market prices. They could sell them at market and dividend the difference back to the population. It's a market distortion, sure, it encourages spending on fuel rather than something else, but it does not affect the pump price in Atlanta.
8 comments:
Australia is currently at $1.35. US doesn't look like such an outlier then...
your point ?
As of this morning, Vancouver BC was $121.5 per liter.
The $Cdn and the $US are just about at par ($1 Cdn = $1.01 USA)
Paul & Nancy,
I do hope you misplaced your decimal point? Demand for gasoline does seem to be fairly inelastic, but at that price I know I'd be doing a lot of walking. ;)
Is "duty and tax" net any "subsidies"?
I must get round to writing something on so-called fossil fuel subsidies. My stomach hurts every time someone suggests that the US or European governments subsidises oil, or coal, or gas, or whatever. I wish, when I get my utility bills anyway.
There's an IEA global subsidy document - from memory something like 95% of the so-called subsidies are Iran/Russia/Arabs/Venezuelans, you get the picture, choosing to sell domestically produced FFs ('owned' by their domestic population) to their domestic population at above cost price, but below world market prices. They could sell them at market and dividend the difference back to the population. It's a market distortion, sure, it encourages spending on fuel rather than something else, but it does not affect the pump price in Atlanta.
The point is that you Yanks are very lucky to have such inexpensive petrol, that's not being used a a tax cash-cow by your government.
look at the other two tabs on that, the real outlier is Greece and not in a good way.
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