- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- New York
The system would be inherently unfair. What about all those people that don't drive but take public transportation? Or what about all those people who live in rural areas?I wish people had to pay their taxes the same way they pay at the pump. I bet it would take less than a week and we would have an entirely new system of taxation. People go nuts about the price per gallon of gas (check out the price of bottled water per gallon) yet they dont scream and yell and their level of taxation!
The system is out of whack largely due to trading. A 1000 CU. ft (MCF) Natural gas has 1/8 the BTU content of a barrel of oil. Natural gas (almost entirely produced in the US) is running $7-8/MCF, seasonly higher, lower in summer. 8 x 8 = $64 max for a bbl. The $40 is a premium that relates to geopolitical risk (Chavez, Nigerian unrest, Iraq) and pure unadulterated specuation by hedge fund traders, mainly on Wall St. and in Conneticutt where a lot of those hedge funds are based. There were 120 energy hedge funds at the turn of the century. There are well over 600 now and they are now considered an even larger component of the oil premium than the geopolitics of crazy men like Chavez.
The real deal will come about when we all trade off our 15 mpg SUVs and start driving more sensible cars. Also, the high prices have given the car companies a real incentive to improve gas milage...howbeit they come late to the table. I checked. I am driving an Impala getting 28 mpg + and my pickup gets 15 mpg. I drove 25,000 last year, 90% of the Impala. Had I drove it exclusively vs driving the PU exclusively, and gas is $3, then that is $2,579 vs $5,000....I saved 773 gallons of gas, over $2400 ($200/month) Multiply that times 10,000,000 drivers who will drive more fuel efficient cars this year. This eventually puts pressure on market forces that even the hedge funds cannot stop.