Gas Prices

[Lumpy]

Oil prices ARE increasing, but not nearly enough to be the primary factor in the dramatic increase in fuel prices in America.

[narsus]

This is where I'm seriously starting to wonder about you. If the Dollar loses half its value, then naturally the price of oil, measured in Dollars, will double. However I'm not paying more of my country's currency for the oil since my currency has doubled its value compared to the Dollar. I am paying 12.70 NOK for one litre of petrol now. In 2005 I paid on average 12.54 NOK per litre.

Lumpy did you even read my entire first post or just pick out 1 tiny thing and decide to argue against it? First off where do you live (otherwise I cannot research and develop a response)? Second how does the volume of oil purchased by your country compare to other high volume countries purchasing oil.

The whole point of my post is that it isn't just one thing look at the second link of crude oil prices. Value of currency, stability of region, supply and demand so on and so forth. The point of the post is it's not oil company profits that make gasoline prices high, for instance you said yourself your government taxes are 80% of the price where you live.

look at the California price breakdown link, ad the price of crude oil which has increase dramatically over the last 10 years.

[Lumpy]

I live in Norway.

"Crude rose to a new trading record of $115.54 overnight as the dollar fell to a new low against the euro, but later pulled back when the dollar strengthened."

"Crude prices have jumped more than 4 percent this week due in part to the falling dollar, but also because of supply and demand concerns in the U.S. and abroad."

http://biz.yahoo.com/ap/080417/oil_prices.html

[narsus]

Isn't that what I was trying to say?

With your previous post of prices of crude they have increased that much and this http://news.bbc.co.uk/2/hi/business/7083015.stm with your link just support my original post.

[Lumpy]

From your latest link: "The falling US dollar has also driven up oil prices as they have to gain to compensate for a slide in the currency."

You said:"The value of the dollar certainly causes a problem, but how does this explain ridiculous prices elsewhere in the world?" That is the only part of your post I have a problem with. The USA is seeing a much MUCH more dramatic increase in fuel prices than the rest of the world due to the fall of the Dollar. And while the price of fuel in my country is very high, it is due to taxation rather than oil prices. The price at the pump in my country has increased by about 20% the last 10 years, and 20% the ten years before that. While the increase in oil prices has affected the price at the pump it has an almost negligible effect for the Norwegian consumer.

[narsus]

But a big difference between your country and many in the world is that Norway is an exporter of gas and oil, of course your gases would be more stable than one that imports oil. That is something I should have stated in my original post, countries that produce oil and gas and and export it will have more stable oil prices http://www.aftenposten.no/english/local/article1094136.ece and http://www.aftenposten.no/english/business/article1092660.ece, but honestly prices in your country are just extremely high and I look around further.

Perhaps this should explain a bit more http://www.freerepublic.com/focus/f-news/1624651/posts gasoline prices for non exporting nations are getting out of hand, price of crude (supply and demand and taxation) account for much of oil prices not price gouging by the oil companies which is generally thought. England and much of Europe prices have risen almost 20% in 4 months that is significant increase.

[Lumpy]

Did you notice that both Aftenposten articles were from 2005 and the Freerepublic one was from 2006?

There was a blip of unusual high prices in 2005 for some reason. The price of fuel actually went down after that, but continued to steadilly increase to today's level which is approximately the same as in 2005.

[Lumpy]

Oh, and the Norwegian government do not regulate the price of fuel here (beside the ridiculous taxes already mentioned). Norwegian oil is sold on the world-wide oil marked just like oil from the middle east, and Norwegian distributors must compete with every other buyer just like you.

[narsus]

You are continuing to argue after what we are saying has been the same thing since my original post, you win even though everything you have said agreed with what I wrote. Also about the older articles it was what i could find on short notice one I found from a year ago, showed Norway as having the highest prices at the pump in the world. Once again as I have to say the same thing gas prices around the world are extremely high, this is due to:

1. price of crude (supply and demand)
2. taxation (as seen in your country which is extremely high)
3. inflation
4. refining costs (new refineries are not being built here in the US would would lessen a bottle neck a bit)

What is not the expected case is price gouging, look at gas history prices for some of your neighboring countries and those that are far flung just support my original post and what you have said which explains it further.

[narsus]

Oh, and the Norwegian government do not regulate the price of fuel here (beside the ridiculous taxes already mentioned). Norwegian oil is sold on the world-wide oil marked just like oil from the middle east, and Norwegian distributors must compete with every other buyer just like you.

So again we are agreeing with each other!

[Lumpy]

But a big difference between your country and many in the world is that Norway is an exporter of gas and oil, of course your gases would be more stable than one that imports oil.

Norwegian oil is sold on the world-wide oil marked just like oil from the middle east, and Norwegian distributors must compete with every other buyer just like you.

So again we are agreeing with each other!

Hardly. If the drastic increase in US prices at the pump was related to the price of oil you would see the same drastic increase in Norway as well, but we don't. I'm sorry, but your argument is flawed.

[narsus]

You said:"The value of the dollar certainly causes a problem, but how does this explain ridiculous prices elsewhere in the world?" That is the only part of your post I have a problem with.

If you read the quote, gas prices in the US are related to cost here in the country. But how does this explain high gas prices elsewhere in the world in Norway Taxes are huge so that explains the differences, crude prices are higher that explains why prices are higher, cost of refining, demand all these relate to high gas prices. Supply and demand as you say competition drive prices etc.

http://www.wired.com/cars/energy/magazine/15-06/st_atlas

Norway is the world's third-largest oil exporter, but hefty taxes aimed at reducing CO2 emissions mean high prices for petrol. So yes taxes in your country are the cause of high gas prices there (not price gouging of oil companies which was my original point) "The value of the dollar certainly causes a problem, but how does this explain ridiculous prices elsewhere in the world?" I am saying here and it may just be a translation issue is that the value of the dollar does NOT affect prices elsewhere in the world that is why I put the word "BUT" in there.

Once again I put the word BUT which means the US dollar has nothing to do with prices elsewhere, again BUT means it doesn't relate to other countries.

[Lumpy]

Yes it might be a misunderstanding on my part. For every post you make I'm less sure of what you're trying to say.

[narsus]

Agreed! 

I was trying to say what you were saying LOL

Gas prices in Norway have nothing to do with the US dollar, taxation is the cause.

[Lumpy]

Yup