Sunday, March 18, 2012

Gasoline is consumed locally but priced globally...Nice graph showing the price of gas over time between the US, Britain and France...Very informative!

Gasoline prices tend to move in tandem with each other regardless of the nationality of the gas (yes, that is meant to be funny). 

The graph below shows a pretty tight relationship at the retail level.  The gap between the lines for Britain/France and the US is the difference in taxes assessed.  Factor those out and they pretty much run together over time. 

The lesson: Gasoline is consumed locally but priced globally (Hey, I think I just made that up--not bad...)
Note: Yes, I know you can find gasoline in many places MUCH cheaper, but that is because of heavy government subsidies which distort the price at the pump.
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