Good point,
Which, if you think about it, is an indictment of high taxes negative
effect on economic effeciencies.
Rick Morrison
72 MGBGT
74 Midget
On Wed, 29 Jul 1998 02:54:17 -0400 "Christopher G. Moog" <cgmoog@ibm.net>
writes:
>Rick Morrison wrote:
>> One thing to remember, the actual cost of gasoline is pretty much
>the
>> same world wide. The disparity is price is more of function of
>taxes, and
>> taxes, and more taxes.
>
>Very true. Just want to add that in areas with very high gasoline
>taxes
>(everywhere but the USA) the cost of the raw fuel is higher than in
>areas with low taxes. The reason is simple economics. If the gas tax
>is $3.00 per gallon, then inefficiencies that raise costs by $0.10 per
>gallon do not cost much in terms of sales (people won't shop for a <3%
>savings) but a $0.10 per gallon price difference when gas is $1.00
>will
>kill sales. So low gasoline taxes push distributors to improve
>efficiencies and compound the savings.
>
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