Saturday, June 18, 2011

Gasoline Prices

Here in the US the average family pays about $3,000 per year for
gasoline. Or about 900 gallons per year.
If you lived in Venezula you would be paying about $252 for your
family's yearly gasoline bill for your car.
If you lived in the Netherlands your bill would be about $8,500.
Or doing the numbers a different way we find that the average miles driven by people in the US is 15,000 miles. Lets assume 18mpg. That translates to 833 gallons per year. The costs in each country would be:
Venezula $234
US $2,900
Netherlands $7,800
As you can see both ways of estimating the costs give similar figures.
And now three questions:
The first question is "Why do these countries have such widely differing prices for gasoline?"
Next is what is the "Right price" we should be paying?
And third, "What would be the effect on the US economy if we had gas prices the same as Venezuela? The Netherlands?







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