Welcome to the first entry on Graham Investment Strategy (GIS). This blog is intended to be my thoughts and analysis, primarily on financial and economic matters, but will include the full range of my interests, including sport, politics, film and drama and life in general.
Visiting England and France for the family vacation in July and August, followed by a week in Pennsylvania seeing family, reinforced how much gasoline prices vary by country. This is entirely abitrary, and dependent upon how much tax each country decides to charge.
Thus regular gasoline (or petrol as it’s called in the UK) and diesel cost Pds 1.13 and Pds1.20 a litre respectively in the UK, while in France they cost Euro 1.20 and Euro 1.12, or 15% and 20% less. In Canada gasoline is C$1 a litre, 35% less than France and 45% than the UK, while in the US it varied between U$2.59 and U$2.73 a gallon, or U$0.57 a litre (C$0.60 a litre). Essentially, gasoline costs one third of the price in the US that it does in the UK and just under 40% of what it costs in France.
Whenever this is pointed out to North Americans, they react with stunned disbelief. The idea that a gallon of gas could cost more than U$7 a gallon is simply so far out of the experience of the great majority of Americans or Canadians that it is regarded as an impossibility. Life on this continent is so dependent upon cheap oil, even after the tripling of the oil price in the last decade, that the inevitable upwards move of gasoline prices here will lead to major changes in lifestyle and the economy.