Is The Price Of Gas Too High?

I wanted to write about this for some time now. I often see American "complaining" that their price of gas is too high yet don't pay much for it compare to other countries even to us up north. Yes, I mean Canada.

Quebec City Gas prize

1 Liter of gas is $1.41CAD here in Quebec City. On average, we pay more than Montreal based on our version of the auto club(CAA). The price don't vary much even compare to them. The price will jump(up/down) by 5 cents here but by 10 cents in Montreal. Of course, they pay less than us when it happens thus the bigger increase. Here, we could have $1.413 per liter. Notice the 3. The price is that rounded.

Sorry I'm American and don't use liter.

Ok, so after conversion to US gallon(3.7854 liters) and since the US and CAD dollar are about the same value today ($1 CAD = $.9944 USD), I will use $1.40. (1.40 * 3.7854)/1= $5.299/US gallon. In Europe, it even more. Some US cities will pay about $4.50 but the US average is $4.11.

John Cow post

John Cow posted about The Evil Gas Empire that We MUST Stop!. So instead of replying in a comment there, I will used this post plus add a few things. Yes, part of the price is too inflated for almost any reasons(geo politico tensions). Next, it will rise because someone farted on an island. Oh wait! farting could cause cancer too. ;) PUMP Act: It won't do any long term positive effect if you get the price to $60 a barrel. Heck, it would increase the demand of gas thus people would buy gas hungry SUV again. At least now, people optimize more their transportation schedules. The good effect in the PUMP act is the price would again be based on offer and demand but America is not the only market and foreign oil companies may prefer to sell elsewhere too like China or India.

Regulation can be bad too

Price for a taxi here did not moved but the price of gas did. In a free market, they could had at least increase the rates since gas is a big part of their budget. It's the same with milk(here and USA). Why should farmers operate at a lost with fixed milk price? Regulator should act faster and move with the price of gas too(up or down).

Taxing the oil companies

Our Quebec Resources Minister talk about it but did not act on it. Anyway, the oil companies would just passed that to us.

Bio diesel

Stop making it is using good grains. We see an increased on food here too but the negative effect is more seen in third world countries where the budget for food in more than here. The ideal was good at first but other bio solutions are being done. Dr. Emmett Brown had the best solution since it was real recycling. ;)

Conclusion

I had to travel for business for my employer thus I got my first car at 24. Yes, city buses was the main way I traveled before that. Since I was paid by the kilometer when on the road, I had to optimize my road trips. Now, I work for myself(no travel) but I still optimize by trips. It's a good habit I kept. But like everyone, I hate paying too much for my gas and I do miss when I was paying $0.55/liter. Back then, I could order a $1 item from my computer distributer with free shipping. That was about 10-12 years ago. Out of curiosity: How much are you paying per liter or US gallons and name the city/country? Edit 2008-08-15: The is not $1.29/liter