22 May 2008

It's a gas...

Things are moving towards a tipping point over here.

Despite the almost incestuous relationship that Germans have with their cars, there'll come a time when there'll be a lemming-like rush away from personal transportation to public transport.

I have no idea when the pain-point will be reached, but if oil reaches $200 a barrel - forecast for this year - it can't be far away.

It's not actually the price of the core product that leverages the price at the pump - it's the draconian tax regime that's crept in over the years and given a kick up the bum by the Greens when they formed a coalition with the SPD back in the 1990s

With oil at its current price of $120 a barrel, tax makes up a good 60% of the pump price of €1.50 litre.

There's a flat tax (€0.67/litre - green), the oil companies' revenue (€0.59/litre - grey) and GST/VAT - a tax on a tax, ferchrissake....!(€0.24/litre - orange).

So even if the multis and sheiks were to give the stuff away for free, we'd still be paying €0.80 a litre. And if you're in the States and moaning about $4 a gallon, just don't!

It's close to 9 bucks over here.......

And it surprises you that we drive fuel-efficient cars over here.....?

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