Petrol prices in USA.

[BensGrandad]

Out of my league here, but isn't crude oil the same price everywhere or do we pay more than USA for it to justify the price of petrol or is it entirely down to our taxes.

 

[Zesh Rehman]

That's a result. I'm going to be there in a couple of weeks driving around some of the south eastern states. 31p a litre sounds good to me!

lucky you!

 

[Scotty Mac]

having lived in canada for four months last year, i can confirm petrol is a BARGAIN. shame alcohol is a rape scene

 

[clapham_gull]

Out of my league here, but isn't crude oil the same price everywhere or do we pay more than USA for it to justify the price of petrol or is it entirely down to our taxes.

It's taxed higher in Europe certainly, but you have to bear in mind that American consumes a lot of petrol.

Something like 40% of the total world production.

I've also read that the average mpg of a car in the USA in well, well below what you you would find in this country.

Their whole economy is built around oil. Oil is traded in dollars pretty much everywhere.

Economics isn't my thing, but I understand that if every other country decided to buy and sell oil in another currency, the American economy would fall to it's knees.

Countries buying and selling oil need to keep reserves of dollars for that very purpose. If they didn't have need for those dollars then the world economy would be flooded with dollars (to be exchanged for other currencies) and like any other product when supply increases over demand - the price falls.

Basically the dollar would fall in value and they would be in trouble.

That's why the USA get so twitchy when a country threatens to do it.

No great surprise that Saddam was threatening that very thing prior to the invasion.

Any economics students out there, I would greatly appreciate a proper run down on the Petrodollar.

 

[bhaexpress]

What many people fail to remember is that although petrol prices may be cheaper, the distances between towns/cities is much larger.

Plus these days most don't drive big cars and also there's no public transport outside of the cities. The town I lived in Georgia was spread over a large area and was about the size of Shoreham but had no public transport, not even a taxi.

 

[Stat Brother]

It's taxed higher in Europe certainly, but you have to bear in mind that American consumes a lot of petrol.

Something like 40% of the total world production.

I've also read that the average mpg of a car in the USA in well, well below what you you would find in this country.

Their whole economy is built around oil. Oil is traded in dollars pretty much everywhere.

Economics isn't my thing, but I understand that if every other country decided to buy and sell oil in another currency, the American economy would fall to it's knees.

Countries buying and selling oil need to keep reserves of dollars for that very purpose. If they didn't have need for those dollars then the world economy would be flooded with dollars (to be exchanged for other currencies) and like any other product when supply increases over demand - the price falls.

Basically the dollar would fall in value and they would be in trouble.

That's why the USA get so twitchy when a country threatens to do it.

No great surprise that Saddam was threatening that very thing prior to the invasion.

Any economics students out there, I would greatly appreciate a proper run down on the Petrodollar.

At last someone has been able to justify the killing of hundreds of thousands of people and thousands of service men.

Now it all makes sense, I might enlist, so I too can protect the Petroldollar.

God bless America.

 

[The Maharajah of Sydney]

Out of my league here, but isn't crude oil the same price everywhere or do we pay more than USA for it to justify the price of petrol or is it entirely down to our taxes.

There are various grades of crude .
They all trade at various premiums & discounts to each other .
West Texas Intermedate would be the most oft quoted price worldwide .
In the UK , Brent ( North Sea ) would be the benchmark .
Tapis , refined out of Singapore is another .