Monday, May 16, 2005

Gas prices in the US

A lot of people are complaining about gas prices here in the US. The main reason for that is that the entire US economy is based on the ability of consumers to drive to their shopping locations. Now that the gas prices have doubled in about 1,5 years consumers are starting to feel the effect in their wallets. Maybe this will spark a trend to move towards smaller cars (in an effort to lower the demand of gas). There are some encouraging signs (the Big 3 - GM, Ford and Daimler Chrysler) are now coming out with hybrid cars and diesel-engines.

However, to give everybody a bit of perspective: in the Netherlands the price of gas is EUR 1.29 p/L * 1.26 (price of a Euro vs. a US Dollar) * 3.785 (Liters in a US gallon) = $6.20 per gallon!!!. That's a bit more than the $2.00 were are currently seeing here in the Cleveland-area...

Let's see what is going to happen in the US for the next few years, but everybody now comes to terms with the fact that the buck-a-gallon days are history.

1 comment:

Proud American said...

People pay more for a gallon of Milk than a gallon of gas. How about the per gallon price of NyQuil? Better yet... I picked up an ounce of Dimetapp pediatric formula for my son for about $5.50 -- translate that to a gallon and gas does not seem too bad anymore.

I say drill more wells, and make more refineries for the short-term. Then find a real fuel alternative. Just please don't put the wells or refineries in my Backyard!!!