Amazon Prime Day 2024

A quarter a gallon - global gas prices and upcoming demand

There are many reasons our readers (and I) want to know about cars that use less fuel, ranging from creating energy independence (the James Woolsey side) to having a cleaner environment (a la Daryl Hannah). While we all care about using less fuel, how much would we care if gas was 33 cents (US) a gallon? Or even a quarter? Those are the prices for fuel in Iran and Venezuela, respectively, thanks to large government subsidies there. Yahoo! news takes a look at gas prices around the globe, and it's a bit of a window into what the world is dealing with when we try to encourage higher-MPG, lower-emission vehicle use.

The article by Steve Hargreaves, staff writer, is totally against the gas subsidies that create these low, low prices, but he does end the piece with a note from Adam Sieminski, chief energy economist at Deutsche Bank, that subsidies aren't the only thing affecting high gas prices around the globe. World-wide demand (including in countries where gas is artificially cheap), coupled with limited refining capacity, that does it. The best thing to do is try and use as little as possible.

[Source: Yahoo!]

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