Friday, April 09, 2010

UK Gas Hits $9.19/Gallon and It's Headed Higher

"Unleaded hit an average of 119.9p a litre for the first time ever, breaking the previous July 2008 record of 119.7p. But some forecourts are already charging 131.9p a litre – just a penny short of the £6 gallon ($9.19).

This is a dark day for Britain’s hard-pressed motorists,” said the RAC. And there is worse to come, warned experts last night. A ­perfect storm of rising wholesale costs, the weak pound and more Government tax hikes will propel fuel costs even higher. Drivers were warned to brace themselves for a 5p-a-litre surge in the next three months, pushing unleaded prices to a 125p a litre average by the summer holidays."


HT: Paul Kedrosky

9 Comments:

At 4/09/2010 8:06 AM, Blogger juandos said...

From Gas Buddy: U.S. gasoline prices bottomed out February 16 at $2.612, but have since moved higher, to $2.689 at this writing. Gasoline prices will come close to hitting their 2010 highs in the next week as traditional fundamentals showing weak demand and adequate supply are seemingly ignored, with traders focusing more on French refinery strikes and Iran's nuclear ambitions.

Hmmm, industrial and economic recovery in the US?

Looking shakey from where I sit...

 
At 4/09/2010 9:24 AM, Blogger Kraut said...

I'm pretty sure that quote of $9.19/gallon is the British Imperial gallon. In equivalent US gallons using an exchange rate of $1.53 per British Pound, the cost is $7.65 per US Gallon (3.79 liters).

 
At 4/09/2010 10:42 AM, Blogger rjs said...

watsamatter, dont they know to drill, baby, drill?

 
At 4/09/2010 10:52 AM, Blogger Tim Worstall said...

Kraut is correct there.

Not only is the gallon a different size, so is the fluid ounce....

 
At 4/09/2010 10:53 AM, Blogger Tim Worstall said...

Oh, and the price difference of course is tax. 42p a litre for the gas and all of the rest is tax.

 
At 4/09/2010 1:48 PM, Blogger Ben said...

Anyway to find out what the tax breakdown is on a gallon of gas in the United States (California)? I have to imagine tax is over 50% of the sales price.

 
At 4/09/2010 2:51 PM, Anonymous richard said...

£1.199 for a liter is (x3.79) £4.539 for a gallon. That's (x1.84) about $7 for a gallon.

If you compare this to the Netherlands: 1.49 euro for a liter, that's about $7.60 for a gallon.

I knew we still could beat the British!

 
At 4/09/2010 5:40 PM, Anonymous Lyle said...

In the US the federal gas tax is 18.4 cents per gallon, the state tax varies 41.2 in Ca 19 in Az 20 in Tx. so in ca it is a total of about .60 per gallon so on the order of 20 per cent of the price. The highest is NY at 62 per gallon and the lowest in the lower 48 is wy with a total tax of 32.4 cents per gallon.
Sooner or later we will move to a per mile charge, basically making all roads toll roads. I suspect it will be a base charge for streets and regular roads and an upcharge for urban freeways and the like. (Rural roads are cheap to build its the urban freeways that keep having to be rebuild as growth demands it)

 
At 4/09/2010 7:55 PM, Blogger OA said...

Ben, try below. It says 67 cents for CA as of Apr. 2010, which is the highest total for any state. Since part of that is sales tax, it is not a fixed amount.

http://www.api.org/statistics/fueltaxes/index.cfm

 

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