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Old May 9, 2008 | 06:07 PM
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Franc Rauscher
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Joined: Mar 2008
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From: St Louis MO
Default Re: Gas Prices Outside North America

Originally Posted by jackei
The gas they are selling in China is actually under market price, that means they are losing money for every gallon of gas they sold. This is due to the old laws in China that restricting the market price on the gas.

I don't know if this is good or bad.
This kinda points out the problem with gallon by gallon comparison of prices. It doesn't equalize the real cost to the consumer because in some countries it is subsidized and therefore lower or in other countries, highly taxed (to support their social programs?) so the at the pump price can include many confusing factors.
We actually pay more for gas than what you see at the pump because some of your tax dollars go to "oil depletion allowance" some to ETOH programs and on and on. These costs are "indirect" and don't show up in a pump to pump comparison.

It is interesting to note that the Western countries have tagged a lot of costs onto the pump price whereas the "third world" regimes are cheap. The ones who claim we are irresponsibly ruining the ecosystem with our industry have no problem burning as much gas as they want. And provide it cheap, to themselves.

I would imagine it costs just as much to pump it out of the ground in the US as it does in Russia or Saudi Arabia. But I can guarrantee, after a western government gets their piece, it will cost lot's more at the pump.

All that oil in Anwar or offshore off California will cost as much at the pump as the stuff from Venezuella, Mexico or Kuwait. 'Cause we are a "world" market.

Yeah, that explains it completely.


roadster with a stick
 
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