Comments on: Fill Your Tanks Up Today!

By: Don Ray

Don Ray — Thu, 29 May 2008 13:49:56 +0000

Hi Jan. I will never forget the tornado going down the creek when I was a small boy and laying all of the cotton woods on their side.

Glad no one in that area was hurt.

By: Jan

Jan — Thu, 29 May 2008 13:38:45 +0000

Gas in Enid, Oklahoma is $3.77 this a.m. that this just the regular. It was $3.71 in Edmond, Oklahoma yesterday. Diesel is much higher than that as we will be starting wheat harvest next week probably. Went by your place and out buildings are still there. Looked like no harm. Tornado went through last Sunday and took many old large trees and barns. Jan

By: Don Ray

Don Ray — Thu, 29 May 2008 12:30:07 +0000

Hi Patrick and Henry. It does depend on what perspective you use when you make the comparison of gas prices. If you use the comparison of which countries prices have grown the most over a period of time, you will get one indicator.

If you use the perspective of an individual moving from one county to another, then that person will think in terms of which is higher to him.

It is amazing me that there are as many cars on the road in Panama. However, it is cheaper for Panamanians to drive than US citizens, because everything is pretty close. If I were in the US, I would have to drive a great distance to accomplish most things. A tank can last me a month. To do the same thing in the US, it might not last a week.

More and more people in Panama are leaving their car parked and have switched to bicycles or bus or cab. I may need to start walking more myself.

I personally think we have seen the end to cheap gas.

By: Henry

Henry — Thu, 29 May 2008 09:11:34 +0000

I plan to explore this a bit further later, but if you compare the price of German gas today with 1968 (I use that year because I have personal knowledge of gas costs in Germany and the US then) and use the Deutsche Mark (DM), instead of the dollar as the standard, you will find that the cost of fuel for Germans has risen by a factor of less than 6, while it has risen by a factor of over 11 for US drivers. DM 2.00 can still be traded for 1 Euro, which makes a liter of gas in Germany DM 3.00, or DM 11.40 per gallon. Divide that by the DM 3.85 you could buy with $1.00 in 1968, and you find a price of $2.98 per gallon (In 1968 dollars) for Germans. Feel free to do your own math. I used DM 0.59 per liter and $.35 per gallon for the 1968 prices.

What this little exercise will do is show you where the real price increases have come from. Most of it is devaluation of the dollar, pure and simple, and puts the lie to the “Hey, we ain’t got it so bad. Look at the poor Europeans” refrain.

Henry

By: patrick

patrick — Thu, 29 May 2008 04:35:45 +0000

When comparing Gas prices here compared to Europe and the U.S. you are comparing apples against oranges. What is the average Panamanians weekly salary compared to a European or North Americans weekly salary. So, if the European is paying $11.00 per gal. and the Panamanian is paying $4.50 per gal what you have to look at is the percentage of their salary to pay for gas. It’s a wonder there are any cars on the road here at all!!! That is absolutely surrealistic.
Patrick

By: Don Ray

Don Ray — Wed, 28 May 2008 19:10:00 +0000

Yes, it will usually depend on the station. In the past there were a few stations that would wait to change as late as possible to help the taxi drivers. Doubt if they are doing that any more.

By: Joyce LaGow

Joyce LaGow — Wed, 28 May 2008 19:04:49 +0000

I know. But the announcement always comes out the day before. They’re supposed to change the prices at the pump after noon, but we’ve seen plenty of times when, by 11 am, the prices are already changed.

By: Don Ray

Don Ray — Wed, 28 May 2008 18:41:49 +0000

Here in David, the price won’t change at the pumps until tomorrow. Usually that is in the afternoon.

By: Joyce LaGow

Joyce LaGow — Wed, 28 May 2008 18:21:45 +0000

The Panamanian government adjusts the prices for fuel every two weeks. We filled up yesterday, knowing that the price was going to be readjusted today. So, mark your calendar–two weeks from now, there will be another readjustment.

The rise is totally unsurprising, given the record prices of oil. Also, the highest prices are being charged for light, sweet crude, which is the crude from which diesel is made. So…..

Gas has always been higher in Europe, which is why they have excellent mass transit and are fond of less expensive means of getting around–like bicycles, walking, etc.

By: Omar Upegui R.

Omar Upegui R. — Wed, 28 May 2008 18:20:58 +0000

Hi Don:

“On Tuesday, hundreds of British truck drivers in London and Cardiff brought traffic to a crawl in a campaign to get their government to lower taxes on diesel fuel, which now costs over $11 per U.S. gallon (3.8 liters).”

High fuel prices prices due to international crude oil speculation plus outrageous fuel taxes are driving Europe to a halt. Paying $11.00 for a gallon of fuel is absolutely surrealistic.

Regards,

Omar.-