That's right. In America fuel is cheap compared to everywhere else. One
reason is that, as you say, it is subsidized, in that the full costs of
building/maintaining the road network and auto-centric infrastructure are
not being paid by the users, but rather, out of the general tax pot
(which includes non-drivers and public transit users, like New Yorkers).
So I would have to admit that I couldn't complain even if the gas taxes
were much higher.
But what galls me is the corporate greed and price collusion which allows
fuel in certain areas to be priced 20-30% higher than in others, and not
due to increased local costs, either. I say collusion, because in a real
capitalist system, someone would lower their price in order to increase
sales or market share. But in the US what we have is more a form of
corporate socialism, at least for the larger, old-line industries (oil,
banking, automobiles, aerospace)...
OK, OK, I'll shut up already...
Eric had this to say:
>I guess it is all relative but I am not sure why you Americans are
>complaining about expensive fuel. Expensive compared to what?
>
>In Australia the price is rising rapidly... but much of that has to do
>with huge State and Federal taxes being added all the time (added then
>increased).
>
>In Adelaide, South Australia, I can get fuel at my local for 83c per
>litre (for 'super' leaded). However, a hundred yards down the road I
>buy my AvGas for $AU1.10 per litre - a rare treat for the little beast
>these days but racing season is coming up and this will be the last
>season that we will be able to use AvGas).
>
>You do the sums... the US subsidises their fuel greatly and you pay
>cheap prices at the pump compared to many others. Yes, Australia
>exports oil, too - but there is a thing called 'world parity pricing'
>that keep stepping in the way of us taking advantage of our own rich
>supplies.
>
>
>Eric
>'68MGB MkII
>
--
Max Heim
'66 MGB GHN3L76149
If you're near Mountain View, CA,
it's the red one with the silver bootlid.
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