Gas is cheap
May 28th, 2008 | Published in Current Events, Economics, Energy, Quotes | 2 Comments
According to the Energy Information Administration, in 1922, gasoline cost the current-day equivalent of $3.11. Today, according to the EIA, gasoline is selling for about $3.77 per gallon, only about 20 percent more than 86 years ago….
American gasoline is also dirt-cheap compared with gas in other countries. British motorists are currently paying about $8.38 per gallon for gasoline. In Norway, a major oil exporter, drivers are paying $8.73.
—Robert Bryce, “Gasoline Is Cheap“
May 28th, 2008 at 2:10 pm (#)
American gasoline is also dirt-cheap compared with gas in other countries. British motorists are currently paying about $8.38 per gallon for gasoline. In Norway, a major oil exporter, drivers are paying $8.73.
I was wondering about their current prices. It used to be such fun to mock Europeans for their $4/gallon gas ;)
July 25th, 2008 at 10:32 am (#)
It also cost more to produce gasoline in 1922 than it does now, and there was less being produced at a slower rate. By this standard computers should cost billions of dollars considering the first computers cost $1 million dollars. The point of supply and demand is that as your demand goes up you can produce on a larger scale. As you produce more the technology increases to make it cheaper to produce. Then other markets come in and create compatition to drive the producer to create a better product at a lower price. That is what is wrong with Oil companies. They don’t have to compete with each other on price. Their price is set by OPEC. Creating a mass global Monopoly.