Quote:
Originally Posted by cedarheart  LebanonUSA,
I agree with almost everything you said in your post except that you have to note that while gas price in the US went down from 4$/gal to 1.60 as the barrel price collapsed, the price at the pump in Lebanon didn't budge! it remained at the same price. Lebanese are actually paying more now (barrel ~70$)compared to last summer when the barrel was at 140$. This raises questions on price policy, and hence this thread.
For how to fight high prices, we're on the same side, as i said in my post yesterday, which i repost here:
On the long run, oil prices are going up, the 140$/barrel last year was just a sampler.
Prices might go down for while, but i'm talking Long Term, the trend is upward!
Even if we cancel all fees in Lebanon on car gas, the price at the pump is still going to go up, and up, and up.... we might bring it down to 15,000LL this year, but in few years it'll go back again to 30,000LL and above (with no tax).
I'm making the point that finding a solution to gas prices (aka benzine) doesn't necessarily pass by fighting the price of the 20L at the pump, this could be a help but it'll only be a band aid solution which won't last in the face of long term oil pricing.
The solution should look into several sides:
1- Purchase Power of the average salary, job opportunities, .... (when people make money, the prices won't feel as bad as they are now!)
2- Offering alternate solutions (good public transportation, low taxes and yearly fees on cars that consume less (Lebanese want to drive Range Rovers but don't want to pay for gas, this mentality should change), carpooling,...)
3- A national long term energy policy based on switching electricity production from oil to hydro, air, solar, natural gas,... and use the budget (millions and millions) that we pay each year to buy oil for power plants to subsidize car gas (we might even need half of the budget only)
The gains of such an integral energy policy won't only benefit consumers but our environment too! |
Cedarheart,
I returned to the US in 2000 when 20L of gas in Lebanon was 27,000LL and gas in the US was $1.15/gal (I think oil prices were hovering around $20/barrel back then). While the price of gas in the US skyrocketed to $4/gal and the price of oil to $147/barrel, the price of gas in Lebanon barely reached 33,000LL. Gas prices were capped in Lebanon when in reality it should have gone up to 98,000LL...
Now I'm talking in pure economics. If gas prices in Lebanon skyrocketed like it should have without the price cap, the political story today would have been much different (though I don't see how either M14 or the opposition could face this reality).
25th June 2009
why are you busting my chops today man?:P
