# Fuel is much too cheap

Discussion in 'Business & Economics' started by alain, Aug 23, 2006.

1. ### alaindu hast michRegistered Senior Member

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1,179
Now that I've grabbed your attention with that title, think about it.

In Australia at the moment, we pay approximately $1.40 a litre How much would you pay to buy a 600 ml bottle of water. In Australia it might be$2.40. That works out as $4 a litre - almost three times as much as the same amount of petrol. Surely, water would be cheaper. It is more abundant by an incredible factor, found in all countries instead of a few, can often be found pure, without the need for processing of any kind. Fuel, on the other hand, is very scarce, basically found only in the Middle East, Russia and America, is usually found deep underground, where extraction is costly, and, I would assume, needs processing before it is sold. Why is petrol so cheap, does anyone know? 2. ### Google AdSenseGuest Advertisement to hide all adverts. 3. ### madanthonywayneMorning in AmericaRegistered Senior Member Messages: 12,461 When you buy bottled water you're paying for packaging and image. Compare gasoline to tap water. 4. ### Google AdSenseGuest Advertisement to hide all adverts. 5. ### NickelodeonBannedBanned Messages: 10,581 I wonder if the sheer volume of oil that is extracted and processed that makes it less expensive, when you think of just how many barrels of oil are produced and consumed each day. The economy of scale must be greater than for bottled water. 6. ### Google AdSenseGuest Advertisement to hide all adverts. 7. ### leopoldValued Senior Member Messages: 17,455 cheap? i can remember gasoline being sold here in america for 25 cents a gallon 8. ### spuriousmonkeyBannedBanned Messages: 24,066 Yes, it is too cheap. We are using up the resources too fast because they are too cheap. No alternatives are being researched (properly) because petrol is too cheap. Triple the price. Quadruple it. It's all fine. 9. ### The Devil InsideBannedBanned Messages: 8,213 im sick of hearing my american friends bitch about fuel prices..it is nearly 7 dollars a gallon here in belgium (equivalent, of course). they are ALMOST paying 3 dollars per gallon in my hometown. waaaaaaah!!!! 10. ### spuriousmonkeyBannedBanned Messages: 24,066 American hater. Americans have the right to freemarket subsidized consumerism. 11. ### The Devil InsideBannedBanned Messages: 8,213 all hail the mighty walmart!!!! fuck it..DAMN THE MAN!! 12. ### spuriousmonkeyBannedBanned Messages: 24,066 Stick it to the man! 13. ### NickelodeonBannedBanned Messages: 10,581 The man is not in at the moment, if you would like to leave a message please leave one right after the ****ing BEEP. 14. ### DaleSpamTANSTAAFLRegistered Senior Member Messages: 1,723 So why isn't your title "Bottled water is much too expensive"? -Dale 15. ### DaleSpamTANSTAAFLRegistered Senior Member Messages: 1,723 Hehe. That is a really funny oxymoron. -Dale 16. ### alaindu hast michRegistered Senior Member Messages: 1,179 I'm sure they're both true to some extent, but I can't believe that they would have that much of an effect. I use more water then fuel, I don't know about other people. Even if some of that is tap water, that should still increase supply, lower demand and thus lower cost. I said cheap compared to the logical price, not compared to its historical price 17. ### spuriousmonkeyBannedBanned Messages: 24,066 Not if fresh water is a limited resource. 18. ### NasorValued Senior Member Messages: 6,230 That's because Belgium has insane gasoline taxes. You pay$3.60/gallon in taxes on gasoline there. If you got rid of the taxes, the price would be about the same as in the U.S.

http://www.fhwa.dot.gov/ohim/mmfr/dec05/mftrates.htm

But do you use more bottled water than fuel?
Like someone else said, the problem isn't that gas it too cheap - it's that bottled water is stupidly expensive. Tap water is so cheap that it's practically free.

19. ### The Devil InsideBannedBanned

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8,213
regardless of what the cost is, americans complain too much about prices. the money is still taken out of your wallet, wherever you are.

and here in belgium they use the extra tax to actually pay for schools, roads, community projects, free health care, and taking care of the poor.

this is a foreign concept for the american mind, as our taxes are used to kill people in other countries.

i repeat: americans complain too much about the price of gasoline. and before you say anything, yes, i am american.

20. ### DaleSpamTANSTAAFLRegistered Senior Member

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1,723
I can accept that, but what the hell does the "logical price" of gasoline have to do with the current market price of bottled water. It seems to me that the two are completely irrelevant. In the case of bottled water you have obscene profit margins and in the case of gasoline (in most parts of the world) you have obscene taxes, so neither really seem to be at what I would call a "logical price".

I agree completely. The funny thing is that we complain and whine about how it is going to cut into our life style and someone should do something about it, and yet we buy the exact same amount. The price elasticity for gas is almost negligible.

-Dale

21. ### swivelSci-Fi AuthorValued Senior Member

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2,494
Quoted for truth.

22. ### AbsaneRocket SurgeonValued Senior Member

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8,989
We will end up pricing ourselves out of the market before the oil is all used up. Who would pay \$200 a gallon?

23. ### NeildoGoneRegistered Senior Member

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5,306
Fuel is too cheap? Sure, maybe in countries that you can walk from one end of the country to the other in a few days.