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Just For Perspective

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Post by hound dog Mon Mar 07, 2011 11:15 am

The morning we were watching the news from the United States on CNN and witnessed the sad spectacle of Americans lamenting the fact that regular gasoline had just jumped to a little over $3.50 a gallon and, in some places in the U.S., over $4.00 a gallon and then had to listen to speculation that the U.S. federal government is considering dipping into the strategic petroleum reserve in order to soften prices at the gas pump. Shortly thereafter, a cousin living in La Rochelle, France was speaking with one of us and had just returned from filling her gas tank there where she paid the equivalent of $7.19 a gallon for diesel fuel which is much more popular in France than in the U.S. and is the cheapest fuel available there at retail. In France they have long paid over the equivalent of $5.00 per gallon for regular or diesel and long ago accomodated themselves to that reality yet; if we are to believe the CNN reporters, the U.S. is ready to consider dipping into emergency gas reserves to lower the price of this precious commodity at the pump. Is it just me or does it strike any of the rest of you as odd that the notion of $4.00 per gallon regular at the pump is even being considered as a "national emergency" in the U.S.?

So far we are fairly lucky here in Mexico but who knows where we are headed here as the Mexican government observes prices and the consequent panic as gasoline prices begin to slowly rise to their true economic value in the U.S. and Europe.


Last edited by hound dog on Mon Mar 07, 2011 3:48 pm; edited 1 time in total
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Post by cane Mon Mar 07, 2011 12:44 pm

Just for perspective, gas is $6.05 cad a gallon in Vancouver,BC.......($1.33 a liter)


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Post by Peter Mon Mar 07, 2011 3:10 pm

How much were we paying Halliburton to buy gas for Iraq so we could sell it to the Iraqis for under $.10 a gallon so they wouldn't feel the crunch?

How much is gas costing in Venuzuela right now under that cruel dictator?
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Post by David Mon Mar 07, 2011 3:29 pm

Much of the price of a unit of gasoline or diesel in the Europe and Canada is excise and VAT taxes. The actual cost of the fuel is similar to that in the US.
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Post by DaveP Mon Mar 07, 2011 3:38 pm

cane wrote:Just for perspective, gas is $6.05 cad a gallon in Vancouver,BC.......($1.33 a liter)


That's a Canadian Gallon. Actually it's only $5.02 for a US gallon

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Post by Carry Bean Mon Mar 07, 2011 3:45 pm

Exactly right, David.

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Post by hound dog Mon Mar 07, 2011 4:14 pm

David wrote:Much of the price of a unit of gasoline or diesel in the Europe and Canada is excise and VAT taxes. The actual cost of the fuel is similar to that in the US.

Which, indirectly at least, is my point. In the interests of raising capital for infrastructure maintenance and development tied to transportation needs, inducements for private sector and governmental capital flows to entrepreneurial efforts to develop more efficient and alternative modes of transportation and to encourage rationing of a scarce and finite resource by encouraging people to use their personal automobiles less frivolously, the United States should also be seriously raising gasoline taxes as Europe has done for years with proceeds dedicated to research and development of the technology needed to free the U.S. and other western nations from their dependence on oil and the despots controlling much of the supply of that vital commodity. Beats the hell out of sending our youth off to die and wasting our national treasure to support the corrupt regimes of places such as Iraq and Afghanistan.

What is the true intrinsic cost of a gallon of gasoline considering its scarcity and the U.S. dependence on suppliers, many of whom either hate us or disrespect us or depend on our military or the threat of our military to support their despotic leaders who bleed off their nations´ sovereign wealth through open and ongoing theft ? Who knows but maybe $10 a gallon for that trip down to the Piggly Wiggly for those weiners and a case of beer would be reasonable if that price might encourage someone to take public transportation if such were available in the U.S. When we go shopping for those heart stoppers in Chiapas we and many others take public transportation which is damned convenient and cheap here. If the poorest state in Mexico can provide that service through a combination of governmental assistance and private enterprise, then the richest nation on earth can as well.

By the way, getting back to the cost of diesel fuel in France with its heavy VAT and excise taxes driving up the cost of individuals driving frivolously down to that French Piggle Wiggly to buy those weiners and then driving back for the beer or mustard they forgot on trip one; the French government imposes the heavy tax burden on the French consumer to induce responsible behavior and conserve gasoline but, in turn, partly with the proceeds of those VAT and excise taxes, subsidizes the fuel costs of trucks that deliver foodstuffs to the supermarket to keep the transporation costs of delivering those foodstuffs within reason to combat inflation in the price of vital comestibles. Sounds like a rational policy to me if properly managed.


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Post by ferret Mon Mar 07, 2011 5:25 pm

How about charging for gas the way Mexico charges for electricity...the more you use, the more you pay.
I'm not talking about penalizing those who use their vehicle more for work...I'm talking about penalizing those large, gas guzzling SUV's...so the penalty would be based on gas mileage.
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Post by cane Mon Mar 07, 2011 5:53 pm

DaveP wrote:
cane wrote:Just for perspective, gas is $6.05 cad a gallon in Vancouver,BC.......($1.33 a liter)


That's a Canadian Gallon. Actually it's only $5.02 for a US gallon

DaveP

From a Canadian selling "Perspective" , Eh.

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Post by Peter Mon Mar 07, 2011 8:06 pm

DaveP wrote:
cane wrote:Just for perspective, gas is $6.05 cad a gallon in Vancouver,BC.......($1.33 a liter)


That's a Canadian Gallon. Actually it's only $5.02 for a US gallon

DaveP

Is that Canadian or US dollars?
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Post by DaveP Mon Mar 07, 2011 8:10 pm

Peter wrote:
DaveP wrote:
cane wrote:Just for perspective, gas is $6.05 cad a gallon in Vancouver,BC.......($1.33 a liter)


That's a Canadian Gallon. Actually it's only $5.02 for a US gallon

DaveP



Is that Canadian or US dollars?

Does it matter, they are so close anyway, US would be higher.

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Post by CanuckBob Mon Mar 07, 2011 8:20 pm

It's Canadian $$. I just had the honor of filling up at those prices this morning. On the weekend I had to fill up my '63 Vette. It takes the good high octane. It was $1.45/liter.........
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Post by David Mon Mar 07, 2011 9:09 pm

DaveP wrote:
Peter wrote:
DaveP wrote:
cane wrote:Just for perspective, gas is $6.05 cad a gallon in Vancouver,BC.......($1.33 a liter)


That's a Canadian Gallon. Actually it's only $5.02 for a US gallon

DaveP



Is that Canadian or US dollars?

Does it matter, they are so close anyway, US would be higher.

DaveP

Maybe should be, we'd like it to be, but no, the C$ is worth $1.03USD
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Post by Mcee Tue Mar 08, 2011 5:47 am

Good morning all!

Three things get me about the gas prices: 1) We don't have to use our "Reserves"...as we have gobs of oil and gas fields in this country (USA) that remaind untapped. (Ex. the Natchez Trace field that spans from Natchez, MS to Beaumont, TX and the other one (I forget the name) in the Rocky Mt. area.) 2) Where are the "alternative" fuels sources the past 3 presidents said they were going to initiate? 3) Yes, some alternative fuel vehicles are on the market, but the average Joe/Jane can't afford to buy them. It's insane......

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Post by simpsca Tue Mar 08, 2011 9:53 am

David wrote:Much of the price of a unit of gasoline or diesel in the Europe and Canada is excise and VAT taxes. The actual cost of the fuel is similar to that in the US.

Actually David is correct. In Europe, Canada, and a lot of the world, gas is taxed to provide social programs. In Mexico gas is the primary source of income with remittances from the US being second source. The US used to use at least part of the gas tax to improve highways and infrastructure such as bridges, but I believe that has been discontinued.

No doubt the price is going up with turmoil in the oil producing countries in Africa and middle east. Airfares have already gone up.
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Post by hound dog Tue Mar 08, 2011 7:04 pm

simpsca wrote:
David wrote:Much of the price of a unit of gasoline or diesel in the Europe and Canada is excise and VAT taxes. The actual cost of the fuel is similar to that in the US.

Actually David is correct. In Europe, Canada, and a lot of the world, gas is taxed to provide social programs.

Well, Simpsca, I don´t believe David offered an opinion as to the disposition of tax revenues raised through VAT and excise taxes in Europe. It is you who have posited the notion that "In Europe, Canada, and a lot of the world (where-ever that may be), gas is taxed to provide social programs." Perhaps, since you have taken this stance publicly, you can enlighten us as to what specific social programs have been funded in whole or in part in, say, France (or another country in Europe or North America of your choosing) , through revenues generated by taxes on retail gasoline sales.

Regardless of the disposition of revenues generated through taxes on retail gasoline sales in Canada, Europe or "...a lot of the world...", please note that my proposition that retail gasoline sales taxes in the United States be specifically earmarked for transportation infrastructure and research and development into alternative energy sources and the like. It is critically important that revenues raised from gasoline taxes be utilized in endeavors related to maintenance of transportation infrastructure including public rail and mass transit development and R&D into ways gasoline refined from crude oil can be rendered obsolete within a reasonable period of time.
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Post by martygraw Tue Mar 08, 2011 7:52 pm

Hey Bubba lighten up a little, or put the Tequila away.
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Post by hockables Tue Mar 08, 2011 8:08 pm

I believe they call it " General Revenue "...

Deregulated Government Spending :(
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Post by David Tue Mar 08, 2011 8:21 pm

I have always wondered "what they did with the money" from all the taxes in Europe. High income taxes, high VAT, excise, and other taxes. I know that European countries have generous unemployment, health, retirement, and other social benefits and they have great highways. Never the less, they've (mostly) gotten into financial difficulties in recent years. All because of the US sub-prime mortgages? I don't think so. It makes me wonder. The minimum VAT (think sales tax) is 15%. They have onerous income taxes too. But think about this; they have TWO EEC government HQs to support, Brussels and Strasbourg, and each their own country Fed to pay for too. Little wonder they spend time f*cking with Intel, Microsoft, and Google fining them billions for simply being market leaders. Gotta get the money somewhere. I think the EEC model doesn't work due to high taxes. I think the US model no longer works either, due to low taxes. Europe and the US have both overspent in recent years, Europe on social welfare, the US on senseless wars. I'd rather the US had overspent on it's people rather than foreign wars of choice.
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Post by simpsca Tue Mar 08, 2011 8:38 pm

England provides free medical coverage for everyone, decent public transportation system and high speed trains throughout the country. Plus an influx of foreigners who qualify for the generous British social welfare benefits. I just had two friends come back from several months in England and we were discussing medical costs. They said they are all set since they had all their tests while there and were given enough medications to last while they are here.

And I agree David, I would rather the US spent the money on infrastructure at home and social programs in the US rather than any foreign war.
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Post by Uncle Jack Wed Mar 30, 2011 4:33 pm

".....On the weekend I had to fill up my '63 Vette. It takes the good high octane. It was $1.45/liter"

A '63 Vette.....Oh, poor baby!

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Post by Carry Bean Wed Mar 30, 2011 6:45 pm

I think the UK's VAT recently went up to 20% from 17.5%. That's one heck of a lot of tax!

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Post by CanuckBob Wed Mar 30, 2011 7:02 pm

Uncle Jack wrote:".....On the weekend I had to fill up my '63 Vette. It takes the good high octane. It was $1.45/liter"

A '63 Vette.....Oh, poor baby!

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Haha......thanks for the sympathy UJ.
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