Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Usually I try not to post about topics not pertaining to technology, but in the case, I think it was warranted. Before the US went to war with Iraq is 2003, gas prices in Northeastern Pennsylvania were around $1.69 - $1.79 and milk was around $2.59 a gallon. On my drive to work today, I noticed a gas station changing it's price to $2.69 for gas. Just the other day I bought a gallon of milk for that same price. That means that in two years, when the rest of the US was going on a 3% inflation rate (according to inflationdata.com), gas prices started their 65%-70% rise. That seems to be a bit ridiculous. During the summer of 2003, gas prices were blamed on the war. In 2004, the same excuse was used. Last summer, gas prices were blamed on the amount of lumber being sent oversees to rebuild Irag and also the horrible weather in the US shutting down some oil refineries in the Gulf for days (weeks, months?). What's the excuse this year? It can't be because of the hard winter we had because in my opinion, it seemed as though we didn't have winter. It can't be because of the war because more and more troops are being pulled out. So what is it? I remember when I was in high school (just a short time ago) and I put in $5 of gas for the week. Now, $5 won't last a day. When is this going to stop??? <g>
Published Tuesday, April 11, 2006 9:21 AM by Jason N. Gaylord

Comments

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 9:40 AM by A
Simple. Demand grows much faster than supply.

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 9:45 AM by Jason N. Gaylord
Another bad excuse the govt will use. You're trying to tell me that within 2 years there is such a shortage? More and more cars are becoming fuel efficient and most cars since 2000 have a GPM of at least 20 if not 30. 6 years ago I had a 1990 Honda Civic that was in great condition, but had a lower GPM rating than a Hummer! Argh!

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 10:14 AM by Plip
Welcome to the real world. :-)

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 10:26 AM by Jason N. Gaylord
Thanks for the support Plip [enter sarcasm here]. Maybe you should move to the US and become our President. Can you imagine that? You can even run with Wally being your VP. :-D

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 12:00 PM by Jeff Gonzalez
One thing I find even more interesting, if you look at the financials for oil companies, they posted record profits in previous quarters where the "alleged" demand was so much higher than the supply that prices grew to $3 a gallon in places.

I am still trying to sort the logic to that one out.

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 12:02 PM by foobar
Not sure where you got any of those excuses, but the primary reason that oil prices are so high is because of significantly higher demand from the United States, China and India. I'll let you research just how much it has risen over the past few years.

Historically, gas prices in the 90s and the early 00's were abnormally low and were well below inflation rates.

If you want oil and subsequently gasoline to become cheaper, quite whining and use less of it.

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 3:30 PM by RolfBjarne
Move to practically *any* country outside the US and you'll find that the oil price is higher.

Not long time ago I read that the US and Venezuela had the lowest oil prices in the world (including third world countries such as India).

Don't know if this is still valid anymore though.

What I do know is that in EU the gas prices are far higher than in the US.

I don't think it will ever stop...

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 4:05 PM by Jason N. Gaylord
"quite whining and use less of it"

I only use when I do have to. In my area, I can't take a train or community bus to work. Rather, I have to drive. I guess I could ride a bike to work every morning, but then my coworkers wouldn't like me. :)

All I'm saying is instead of making excuses (including its higher everywhere else), "nip the problem at the bud" (ie: Government and Oil Companies).

Hmmm. Let's do some analysis. Check out the Fortune 500 earnings from 2003:
http://www.usatoday.com/money/companies/2004-03-22-fortune-500-list_x.htm

Now check out the Fortune 500 earnings for 2006:
http://money.cnn.com/magazines/fortune/fortune500/full_list/

Notice that the oil companies have, for the most part, the largest increase. Wonder why???

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Tuesday, April 11, 2006 11:40 PM by David Silverlight
Good point Jason.... (climbing up on soapbox)... Yes, isn't it funny that the companies that had such big increases also got billions of dollars in tax cuts?
Isn't it also shocking that they were secretly in the meetings that shaped our energy policy. Not really much of a surprise about oil prices. If you recall, they actually denied ever talking to our president until it was leaked out that they were signed in at each meeting.

It all leads to our dependance on oil and we are at the mercy of these oil companies and an administration that is very friendly with them. Here is an interesting story... When the president gave his most recent State of the Union speech, and spoke about how important energy independence was to him and his administration, he planned to demonstrate it by touring a factory that was developing renewable energy sources. Unfortunately, his budget cuts caused them to have to practically fire the entire staff. They had to hire back 32 employees that day to avoid the embarrassement of the president showing up with nobody there. In short, the president may claim that eliminating our independence from oil is a high priority, but his actions demonstrate the complete opposite. (climbing down from soapbox)
Here is a URL that makes a mention of my story.
http://transcripts.cnn.com/TRANSCRIPTS/0602/21/lol.01.html

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Wednesday, April 12, 2006 1:31 AM by Paolo
From EU point of view (1 Liter = 1.30 EURO), welcome in the world of high gas prices and small cars !

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Wednesday, April 12, 2006 9:03 AM by KimKman
Hopefully one day soon the sleeping giant (the people of the usa) will wake up and we can start making some changes. Gas prices our just the the tip of the melting iceberg.

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Wednesday, April 12, 2006 10:00 AM by Jason N. Gaylord
Great pointer David. I forgot to mention that. KimKman brought up a good point to -- it is just the tip of the iceberg. I'm not stating this point as a US citizen, but rather, for everyone across all nations. Gas shouldn't be that expensive.

Going back to the tip of the iceberg comment, don't get me started on that (global warming) either. ;)

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Wednesday, April 12, 2006 12:16 PM by Darren Kopp
Actually, it's not so much the government as it is the oil companies. They are charging SO much more than it costs. The only reason gas went down in price a little while ago is because congress was going to penalize the oil companies for charging so much.

If we were to pay $1.50 per gallon for gas right now, the oil companies would be making profit. But that's not enough for them.

# re: Off Topic: Which costs more: a gallon of milk or a gallon of gas?

Friday, April 21, 2006 4:46 PM by Jason N. Gaylord
Hmmm - New article:

http://www.msnbc.msn.com/id/12410064/

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