il padrone wrote:
ColinOldnCranky wrote:I recall during the oil crisis (1970's) that people said that they'd never pay the price that americans were then paying. Never ever ever. (That war $1 per gallon, ie around 20c per litre.)
Well, prices in Oz long ago got to that price in real terms
20c in 1970, adjusted for inflation would be $1.91 in 2009. In 1972 (when the oil price jump kicked in) 20c would be worth $1.70 in 2009 http://www.rba.gov.au/calculator/annualDecimal.html
So our current petrol prices are still way too cheap. A fuel price of $2.50-3.00 per litre would be more of the sort needed to shift use well away from cars - something like what fuel prices are in Europe I believe.
Good call. I was afraid someone would jump me for not doing the calcs myslef and for not crafting my reply carefully enough.
However, over the time there were intervals (late 70's?) where we did jump heavily and it stuck. And people did drop use for a while, got used to it and went back as though the relativities had not changed at all.
On the other hand, the substantial rise in proce of cigarettes does seem to have affected the buying habits of consumers. (Then again, there are a lot of other things that have put downward pressure on smoking too, so it's hard to be definite.)
But good cop nontheless.
btw, US pump prices these days WAY lower in equivalent currency terms now than in Oz - around US$3 per gallon - a massive reversal. What's taht work out at? About half what we pay? And then people wonder why the yanks still drive big heavy tanks.