# Why do I always suspect …

Member B when there is a fire in Paris? It must be that they are wearing yellow and his avatar is yellow.

I just put in 34 liters of gas in my car and it cost me 5000 yen (45 dollars). I might riot too if the gas went as high as it is in Paris.

What is your cost per gallon?

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## 18 thoughts on “Why do I always suspect …”

1. Best price in my area is $2.51 / gallon. I do not get it there, out of my way by 180 degrees and five miles or so. Last time I got gas, I paid$2.67 / gallon on the way home from work.

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2. Gerry D:
Best price in my area is $2.51 / gallon. I do not get it there, out of my way by 180 degrees and five miles or so. Last time I got gas, I paid$2.67 / gallon on the way home from work.

My price is about $5/gallon. I don’t think that I should pay more than Stealer fans. 1+ 3. I wonder if there is a Frexit movement. Hey, I have an idea. (This is a good one.) How about I start a GoFundMe page so I can fill up my gas tank? 0 4.$1.92/gallon in Dallas yesterday. Houston area is typically $0.05 to$0.10 cheaper, but have not been their since Wednesday, when it was $2.15. Bet it is$1.87 when I get home tonight.

Middle son is helping build one of the six new pipelines from the Permian Basin to the Gulf Coast. His will move 900K barrels of crude a day. The problem they have had in West Texas isn’t finding oil. They have enough out there to fuel the world for 250 years. The problem has been getting it to refineries. That problem is being solved. You can read about it here. All hail George Mitchell.

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5. The mean price of gasoline (95 octane unleaded) in Switzerland for 2018 (January through October) is 1.669 CHF/litre.  These figures are from Shell, but there’s little difference among brands.  To convert to “heterogeneous and incongruous units” compute:

$\displaystyle 1.669\frac{\rm CHF}{\rm l} \times 0.9969\frac{\rm USD}{\rm CHF} \times 3.785\frac{\rm l}{\rm gal} = 6.298\frac{\rm USD}{\rm gal}$

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6. $2.759/gallon for 87 octane 1+ 7. John Walker: The mean price of gasoline (95 octane unleaded) in Switzerland for 2018 (January through October) is 1.669 CHF/litre. These figures are from Shell, but there’s little difference among brands. To convert to “heterogeneous and incongruous units” compute: 1.669CHFl×0.9969USDCHF×3.785lgal=6.298USDgal$\displaystyle 1.669\frac{\rm CHF}{\rm l} \times 0.9969\frac{\rm USD}{\rm CHF} \times 3.785\frac{\rm l}{\rm gal} = 6.298\frac{\rm USD}{\rm gal}$ Finally someone paying more for gas. 0 8. I paid$2.19/gal to fill up Snooks’s car this morning after church.  More than in Texas, but less than most.   We have a refinery in Memphis, so that keeps the competition in line.

I heard a conversation not too long ago where the subject of refinery capacity came up.   A guy who seemed knowledgeable said that only one new refinery has come on line in the current century, and that if you wanted to build a new one on the East Coast it would take at least 30 years just to get the needed permits to begin construction.  That is an estimate that includes fifteen years of lawyering needed to fight off challenges to the permit that the Environmental agencies would take fifteen years to approve.

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9. John Walker:
The mean price of gasoline (95 octane unleaded) in Switzerland for 2018 (January through October) is 1.669 CHF/litre.  These figures are from Shell, but there’s little difference among brands.  To convert to “heterogeneous and incongruous units” compute:
$1.669\frac{\rm CHF}{\rm l} \times 0.9969\frac{\rm USD}{\rm CHF} \times 3.785\frac{\rm l}{\rm gal} = 6.298\frac{\rm USD}{\rm gal}$

Finally someone paying more for gas.

Yes, and I live ten minutes’ drive from the largest (and since March 2015, only) oil refinery in Switzerland!

It’s all about taxes, not raw material and transportation costs.

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10. John Walker:
The mean price of gasoline (95 octane unleaded) in Switzerland for 2018 (January through October) is 1.669 CHF/litre.  These figures are from Shell, but there’s little difference among brands.  To convert to “heterogeneous and incongruous units” compute:
1.669CHFl×0.9969USDCHF×3.785lgal=6.298USDgal$1.669\frac{\rm CHF}{\rm l} \times 0.9969\frac{\rm USD}{\rm CHF} \times 3.785\frac{\rm l}{\rm gal} = 6.298\frac{\rm USD}{\rm gal}$

Finally someone paying more for gas.

Yes, and I live ten minutes’ drive from the largest (and since March 2015, only) oil refinery in Switzerland!

It’s all about taxes, not raw material and transportation costs.

It looks like the modern world is against refinement and wanted to be crude. I am less than 10 miles from a refinery.

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11. Regular gas costs about $3.50/gal around here. Europe has had the highest gasoline prices for many years. I recall being shocked at the number of SUVs on the road given the price in Britain. Right now, they are paying about 1.3 quid per liter, about$6 per US gallon. This seems to be the price throughout Europe, roughly. Last time I was in Britain, it worked out to be more like \$8, but that must have been near a peak price for oil.

In short, what are the French whinging about?

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12. drlorentz:
In short, what are the French whinging about?

They’re French.  Why do they need something to whinge about?  It’s what they do.

Here is a list of petrol prices per country in USD/litre as of 2018-11-19.  Most of Europe comes in between 1.5 and 1.8.  Hong Kong is the most expensive at 2.09, which makes sense (no local resources, no refineries, sea transport only).  Curiously, Norway, which is a net petroleum exporter, has the third highest petrol price at USD 1.91/litre—ain’t socialism grand?

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13. John Walker:
Curiously, Norway, which is a net petroleum exporter, has the third highest petrol price at USD 1.91/litre—ain’t socialism grand?

Is that effectively some sort of export subsidy?

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14. John Walker:
Curiously, Norway, which is a net petroleum exporter, has the third highest petrol price at USD 1.91/litre—ain’t socialism grand?

Is that effectively some sort of export subsidy?

They have to pack all those sardines in oil so it makes sense.

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15. John Walker:
Curiously, Norway, which is a net petroleum exporter, has the third highest petrol price at USD 1.91/litre—ain’t socialism grand?

Is that effectively some sort of export subsidy?

Norway has specifically attempted to avoid the resource curse. Letting gasoline prices roughly equal the European norm is probably in support of that. Their stewardship of the wealth attributable to their resource windfall is worthy, though they may have gone a bit overboard on the price of gasoline, about 15% higher than their neighbors’.

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16. ctlaw:
Is that effectively some sort of export subsidy?

Here is a document about fuel prices in Norway (albeit from 2014) from Energypedia which says:

The downstream sector of fuels is liberal and open in Norway. Norway has one of the highest fuel taxations worldwide, while the price excl. taxes is among the lowest. The large oil companies (Statoil, Shell,…) dig and refine crude oil and sell oil products as retailers as well.

The article gives the breakdown of pump price in local (NOK) currency as:

As noted “Taxes sum up to 57.6% of pump price.  VAT of 25% is imposed on the sum of all other components; thus, there is a tax on taxes also included.”

Also, because Norway is a net creditor nation with public debt around 36% of GDP, a huge sovereign wealth fund, and running a budget surplus of 4.4% of GDP (2017), its currency is very strong and hence, when converted into dollars, increases the dollar value of prices measured in NOK.

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17. The price of oil has been falling this month, but it was not reflected at the pumps because demand increased for the Thanksgiving holiday.

It might be worth reviewing why Americans did not see a proportional decline in the price of gas when the price of oil declined in 2014 through 2015.   That was when America started exporting gasoline and diesel fuel to Europe.   Fracking in the second half of the oughts had dropped the price of natural gas.   America has lots of natural gas.   With cheap natural gas, refineries on the east coast switched from powering their operations by burning some of their crude oil to operating on natural gas.   This allows American refineries the ability to buy oil from Nigeria, refine it into gasoline, ship the gas to Europe and sell it for less than it costs the Europeans to buy oil from the Saudis and refine it themselves, since they have to burn some of the crude in order to operate their refineries.   So our price of gas was maintained because an increasing fraction of our gasoline and diesel outputs were going to exports.

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18. John Walker:
Also, because Norway is a net creditor nation with public debt around 36% of GDP, a huge sovereign wealth fund, and running a budget surplus of 4.4% of GDP (2017), its currency is very strong and hence, when converted into dollars, increases the dollar value of prices measured in NOK.

This is exactly the point about resource curse. Their sovereign wealth fund is Norway’s principal tool in avoiding the problem. To the extent their strong currency distorts the cost of fuel, one should use a PPP measure rather than the nominal exchange rate. Of course, they love their socialist taxes too but, from the point of view of Norwegian citizens, the exchange rate is not the relevant measure.

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