Rising Oil Costs

Yesterday the price of petrol hit $1.45 a litre. $1.45 a litre! I remember when I was a young'n and the price of petrol was $.64 a litre (gas was around $.12 a litre), even 2 or 3 years back it was only $.80. Go back 8 months and we're talking $1 – but $1.45!? Crazy.

Rising oil prices are of course the reason. Pure supply and demand they say. The story goes that India and China's economies are experiencing a boom and thus their desire for oil has increased hugely, this putting a strain on world oil supplies resulting in the price of crude oil going up, up, up. Of course the fact that the OPEC, Organisation of Petroleum Exporting Countries (read oil cartel), frequently decides to manipulate oil supply doesn't help (and wouldn't you know it, it's decisions are usually to cut supply).

Apparently the Americans aren't too impressed with the recent increase in fuel costs either. Meanwhile our own Treasurer defends the fuel excise (roughly $.38) that we Australians pay on our petrol (as well as the $.038 GST on this fuel excise).

It's surely made me consider the option of selling my 3.8 litre V6 car and getting something a little more economical. As fate would have it, we now require this larger car so that isn't an option that can be taken up. Until our little baby comes along though, most of my driving is done in our smaller 2.2 litre 4 cyclinder car.

As the prices of oil continue to escalate, hybrid (electric & petrol) and hydrogen cars will become more and more viable as cars of choice for the fuel conscious buyer.

I'll finish this rambling off by showing you some interesting stats: Comparative prices of petrol globally and how far $20 USD worth of fuel will get you various countries around the world. I had a much cooler website for the second link, with a graph and everything, but I can't find it now. C'est la vie. UPDATE: I've found it – go here to check it out!

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One Response to Rising Oil Costs

  1. tektrekgamer says:

    Hey:

    First of all wanted to say thanks for the comments over on Seb’s Random Thoughts! And second, I wanted to comment about this entry. The rising prices are concerning to everyone, though it is important to note that gasoline or petrol is 1.90GBP a litre here which is like $3.40 for just 1/4 gallon.

    Rising prices in gasoline are in my opinion a direct result of the happenings in the middle east, not they fight amonst themselves, but the fight that the Americans and the UN are taking to their doorstep.

    I am wondering if the prices in the US have something to do also with the use of military stockpiles of petrol. An interesting subject, I had planned to write about this on my blog as well.

    What does everything else think?

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