Why are you paying so much to fill your cars tank?
Fri, 2010-07-23 12:54 — dave
If you page back several posts you will find a blog on the history of our current energy paradigm. The below post is how I see our current price structure for gasoline and diesel.
I will start off by giving you the dots on the picture as I see it then I will connect the dots. If you see a different dot pattern please drop me a line.
* Diesel always used to be about 30% less expensive than gasoline until GW Bush took office.
* Gasoline is a by-product
* Most of the rest of the world drives substantially more Diesel vehicles compared to the US. If I had to guess many countries have a 50/50 split to maybe a 80/20 split leaning towards diesel cars and trucks.
* Diesel is still less expensive in other countries compared to gasoline...20-30% less expensive
* Diesel cars,trucks get 20-30% better fuel economy compared to their gasoline fueled counter parts
* The US Gas tax is based on the amount of gallons consumed
OK, If the world powers were going to successfully raise the price of energy they needed to maintain status quo on the balance of diesel and gasoline consumed. Obviously if they raised the price of gasoline Americans (the major consumer of gasoline in the world) would change their buying habits and purchase diesel cars and trucks. Diesel is 20-30% less expensive per gallon and the vehicles get 20-30% better fuel economy. Obviously these facts alone would prevent a raise in gasoline prices without some balance to ensure Americans would not convert to diesel.
In addition if Americans started to drive a larger % diesel cars/trucks the gas tax revenue would be severely effected. All Oil industry would loose and their would be a very depressed fuel economy. But people and other economies would win.
So how to raise world fuels prices without jeopardizing the entire gasoline/diesel ratio (remember gasoline is a by-product and can not be shut off...it has to move at consistent rates). Plus they had to ensure that the US took on a larger % of the world price increase of fuel (deeper pockets), make sure that it did not interfere with the Gas tax revenue ect.... the solution, put laws into effect that would give a fake or false flag rationalization to raise the price of diesel above the cost of gasoline here in the US and not change these ratios in other countries. They needed to force Americans to continue drinking gasoline and needed to make sure they liked it.
GW Bush (oil man) understands this dynamic and facilitates the law changes that gave false air quality standards and changed the formula for diesel. This gave the oil companies the excuse to substantially raise the diesel fuel price without creating a stink surrounding their intent, they simply pointed to the fall guy, GW Bush and company...see, you elected them so you alone are to blame. Once this price fix was established and accepted as the norm only then could the industry change the additude of the American buying public to accept higher gas prices without creating a back lash that would have created a fire storm dramatically changing american people's buying and consuming patterns.
So how to fight back? Buy diesel cars and trucks, buy electric cars and trucks, ride bikes... German car makers and others make a few inexpensive diesel cars such as the VW Golf, VW Jetta, Audi A3. Their are many others but they are not available in the USA.
The 5th largest economy in the world (behind Walmart) ,Brazil, fuels all of their cars with alcohol. They import no oil. 100% ethanol power.
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