Are Gas Prices Too High?

May 9, 2008 by Jeremy.

This is a valid question. Common Sense tells us that the value we get from a gallon of gas, as opposed to the alternative, is well worth the price. That really isn’t a valid argument for most so we need to look at it a little deeper.

Coherent Thought has addressed this issue in the past: HIGH GAS PRICES GOT YOU DOWN? which I suggest you read before going on here.

But its been a year so we’ll talk about it again. I recently came across a website that says that gas prices are indeed too high. The site has some great points on its “What Can I Do?” page. Those are all great ideas that will help drive the demand for oil down. Unfortunately, it would take quite literally everyone in the world to take to these ideas to have any impact whatsoever. Also a lot of fuel is used in industrial ways making all of those points invalid in that situation which would leave China with a continued high demand for oil.

The site also makes a huge error in saying that the government has no fault in the high gas prices which is absurdly untrue. The oil companies make about 8 cents on the dollar, refiners about 4 cents, and the U.S. Federal Government has an 18.4 cent tax on every gallon of fuel not to mention state taxes on gasoline.

So Common Sense tells us that the government does indeed have something to do with the price of gasoline.

As to whether its too high, it looks like to me most of you are still DRIVING to work every morning.

So until the price gets so high that you won’t get in your vehicle and drive to work the gas price is not too high.

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