How to take a fabulous road trip for just $50.
Sourced through Scoop.it from: www.washingtonpost.com
This is great for Americans, may you enjoy many miles of happy motoring, but for we Kiwi’s the scale doesn’t seem to work the same. With the price of oil coming down, Americans have gone from paying $3.50 a gallon in 1980 to less than $2 a gallon today. In New Zealand in 1981 we were paying $NZ2.70 a gallon.
So going by the same ration, we should be getting it really cheap! But no, we are now paying around $8.10 a gallon for 91 Octane.
Oil companies tell us that the price of a barrel of oil doesn’t have much to do with the cost of petrol at the pump. However this Washington Post (reasonably reputable) article links the fact that oil prices are at their lowest ever is a key factor. That is true, because we pay in excess of $2.70 a gallon in petrol tax, about the same as Americans pay for their entire fuel delivered to the petrol tank of their cars. I wouldn’t have thought the cost of moving oil, given it’s refined locally would be much more than in the USA and I also wouldn’t have thought the cost of running a gas station would be much different either.
So I wonder if someone could explain to me why, with the cost of oil being so low, in America they are paying about 40% less for their fuel per gallon than they paid in 1980 at the same time as we are paying around 300% more?