(e.g., I recall that most taxis and many other commercial fleets in > Brisbane were using LNG), so the taxes on it were increased? Couldn't the > same thing happen elsewhere, thus tending to wipe out the cost advantage?>

Perce

1. Who is actually getting the extra money for crude oil as the price> increases? Undoubtedly some of the increase goes to the governments of> the oil-producing countries, but do they get all of it? Or are the> oil-exploration companies getting some of that increase as well? Could> it be, for example, that XYZ Petroleum Distribution, Inc. is telling us> that they are having to raise prices because they are paying more for> crude, when in fact part of the increased price is swelling the coffers> of XYZ Oil Exploration Corp. (a foreign-registered division of the same> multinational)?>

2. One reason there is an increased interest in LNG-powered vehicles is> that fuel is cheaper. What taxes are included in the price of LNG? Is> LNG for motor vehicles priced/taxed the same as LNG for heating? I am> asking because I am sure I recall that, about 20 years or more ago in> Australia, as LNG became more popular as a motor-vehicle fuel (e.g., I> recall that most taxis and many other commercial fleets in Brisbane were> using LNG), so the taxes on it were increased? Couldn't the same thing> happen elsewhere, thus tending to wipe out the cost advantage?

Here's the long version: There is a cost associated with pumping up a > barrel of oil, but the price of oil has very little to do with that cost. > The price of oil is set only by supply and demand. That's because OPEC > wants it that way. They control the price of oil as well as they can.

Oil comes out of a hole in the ground, and whoever owns the hole> is keeping the money. They get paid by the barrel.

... OPEC wants it that way. They control the price of oil as> well as they can.

Remember price doesn't have anything to do with cost.

In fact, we have had situations certainly in the UK where, when> there has been a reduction in petrol prices by a few pence per > gallon (because of some big drop in crude prices), the government> has taken the opportunity to raise taxes further.

You're about to have an election (where god knows why you're about to> put Tony Bliar back in power) and you're telling me the gov't has the> balls to _raise_ taxes on petrol just before an election?>

Much of this thread has focused on the differences in the cost of> petrol/gasoline caused by taxes added at the pump which clearly has> nothing to do with the wholesale cost of the refined product or> regional differences of said refined product caused by regional> differences in refining capacity.>

If market collusion continues in the US where refining capacity can> bearly keep up with demand then the wholesale price of gasoline should> (in theory) rise on merchantile markets in North America compared with> similar markets in Europe (unless refiners in Europe are doing the> same).>

In general I think there is a conspiracy in North America when it> comes to energy (gasoline and electricity specifically) when it comes> to taking capacity off-line to force prices higher. Some of Ontario's> nuclear power plants are not on-line for some reason, and I think it's> part of a plan to reduce excess capacity on the eastern-north-ameri­can> grid to cause wholesale electricity prices higher this summer.

Actually, it is because they are undergoing significant upgrading

Most nuclear reactors in canada are over 30 years old.

And with the candu's in foreign countries showing signs of> failure, they want to make sure they are upgraded in Canada.

2. One reason there is an increased interest in LNG-powered vehicles> is that fuel is cheaper. What taxes are included in the price of LNG?> Is LNG for motor vehicles priced/taxed the same as LNG for heating? I> am asking because I am sure I recall that, about 20 years or more ago> in Australia, as LNG became more popular as a motor-vehicle fuel> (e.g., I recall that most taxis and many other commercial fleets in> Brisbane were using LNG), so the taxes on it were increased? Couldn't> the same thing happen elsewhere, thus tending to wipe out the cost> advantage?

What does the phrase "2x cheaper" mean? Statements like that must> drive mathematicians nuts.

What does the phrase "2x cheaper" mean? Statements like that must drive > mathematicians nuts.>

Bill Putney> (To reply by e-mail, replace the last letter of the alphabet in my > adddress with the letter 'x')