Saturday, May 7, 2022

Price Perspective

 

Okay, so gas prices have gone up - we're currently paying between $4.15 and $4.33 per gallon AFTER a price hike.

   

This rise in fossil fuel costs makes people angry and upset. And yet, we pay more than that for a gallon of milk:


and a LOT more than that for a gallon of orange juice. Milk and juice are both renewable resources.



Why are we so reluctant to pay what gas, a non-renewable resource (and pollutant) is worth?

Why do we expect it to be cheap? It doesn't make any sense ...

According to this site https://www.ezinvoicefactoring.com/cheapest-fuel-prices-by-country, the United States "has the fourth-highest gasoline affordability rating on the globe (that is, one gallon of gas costs only a tiny fraction of our average daily income)."

3 comments:

Wendy said...

I think it is because we know it can be cheaper.....it was under 2 dollars not too long ago.....and the cost of milk and orange juice have gone up because the cost of fuel has gone up. Hopefully in the long run it will pan out....just really hard to have it forced so quick and so hard. Everyone agrees that a transition to renewables across the board is a good thing for the entire planet, but to have it happen with such a sharp quick negative impact is shocking. Not many can go out and purchase a brand new Tesla immediately, and all the equipment that is used to make and move things that's run by diesel is crushing businesses and causing more job loss. My old boss tried to order a new log truck and he couldn't. No spots left for production, none....but he was told you can get a spot on a production line for an all electric log truck, but the cost is $650,000.00...that is not doable with the struggles they are experiencing right now to stay afloat. Many industries that are akin to manufacturing have very slim margins to begin with.....so that, I think is the answer to your question. The pain is such a ripple effect that many can do nothing about, nothing....and it's forcing a lot of hard working people out of job and out of business.

Deb said...

I don't expect everyone to drive a Tesla, but I also don't think we need to be driving huge, gas-guzzling trucks for our suburban life.

What I ought to have pointed out is that the U.S. has always had "cheap" gasoline, in comparison to other countries, so we take it for granted: (https://www.globalpetrolprices.com/gasoline_prices/)

"However, there is substantial difference in these prices among countries. As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the U.S. which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for gasoline. All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different."

Wendy said...

Can't disagree with you there, globally speaking that is. Energy independence equals power as we are seeing play our right now with Russia. So, it isn't just about dollars and cents, and it isn't just about a transitioning away from fossil fuels...unfortunately it ends up being a matter of life and death. As with any type of change, buy in can only happen with support and understanding. Judging people who may not have the depth of understanding of the larger picture can only lead to resistance and more division, not the way to usher in change. The time tested human relation principles that govern the acceptance of change will never change...LOL