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Causes and implications of rising oil prices

by Curtis Zimmer

Created on: March 25, 2007   Last Updated: May 16, 2012

I have read the other articles on rising price of fuels. It is! It is absolutely outlandish! They are all correct to no uncertain terms. There is some talk of cheap import oil in many countries. Why does Argentina sell for such a low price and Venezuela they are low priced too. In fact if you happen to live in Venezuela gasoline is very cheap, less than one us dollar per gallon. If you can keep it from being blown up, in Iraq its fifteen cents per gallon.

Now for the taxes on fuel here in the US. Since the late 1960's it has actually only increased right along side with inflation, about 3% annually. Its based on volume and not price. About fifty cents per gallon today but that does work out to a little more than $150,000,000.00 daily, (does not include highway usage tax pd by all tractor trailers) times all 365 days of the yr. What one should keep in mind, is that does not include maintenance on any city, county, or township roads. These roads in the US are all financed by property taxes.

I also remember when lead was "removed" and it caused an increase in the price of fuel. What absolute rubbish. I swear 98% of the population fell for that, lead is and was an additive. Before the invention of different grades of fuel, premium and regular. It was white gas, which had no lead. The issue of burning valves in the internal combustion engine was the problem (they could not handle the heat). Lead was added to lubricate and cool the valves. But I suppose someone took a few surveys and discovered no one knew why lead was in the gasoline. This would be about the second time the big oil companies got greedy and convinced everyone it had to be "removed" that was their campaign, remember?

The first time the large oil Co's took advantage was in the early 70's with the big "oil crisis"; remember all the adds of children saying, "save some for us"? However how many gas stations did you see that were closed with signs "sold out"; me either, unless someone forgot to place their order.

So the big question is why would the law and the courts be willing to put the gas station attendant in jail for price gouging? Was it not price gouging when we were lied to about lead in gasoline? the big oil crisis. Is it just the fact that the oil companies new how to take advantage and did just that. What about the politicians, why didn't they stop it. You can answer that by yourself, right. It is Greed of the oil Co's, why should it be anything less than that for politicians.

So what's changed

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