Rick Morrison wrote:
> One thing to remember, the actual cost of gasoline is pretty much the
> same world wide. The disparity is price is more of function of taxes, and
> taxes, and more taxes.
Very true. Just want to add that in areas with very high gasoline taxes
(everywhere but the USA) the cost of the raw fuel is higher than in
areas with low taxes. The reason is simple economics. If the gas tax
is $3.00 per gallon, then inefficiencies that raise costs by $0.10 per
gallon do not cost much in terms of sales (people won't shop for a <3%
savings) but a $0.10 per gallon price difference when gas is $1.00 will
kill sales. So low gasoline taxes push distributors to improve
efficiencies and compound the savings.
|