The Problem? Gasoline is Basically Free
by Lloyd Alter, Toronto on 04.22.07

Articles in Auto sections of newspapers are usually rah-rah reviews of the latest pickup, spacers between the ads. Not the earth day edition of the Toronto Star, which had article after article saying things like "I watch people drive their children to every sport imaginable to make sure they're getting enough exercise. We're idiots." More shocking in such a section was Jim Kenzie wondering why we don't buy small efficient cars.
The car industry can build more efficient vehicles, and is in fact doing so. So, why don't we buy more of them? Because, as I have said a million times, gasoline is basically free. Despite all the whining, gasoline is as cheap now as it has ever been, on an inflation-adjusted basis. It is the cheapest fluid you can buy at a gasoline station. Water is three bucks a litre, fer cryin' out loud. As long as gasoline is free, we're going to keep on driving all by ourselves to work in a 2,000 kg truck, or picking up little Brittney at Havergal [local private school] in a 500-horse SUV, engine idling while you wait, air-con set at full cryogenic.Surprising reading from a car columnist. ::The Star


















sad, but true.
I totally agree with Jim. Gas is way too cheap, and I have a harsh tongue to those that complain when the price jumps up 0.20$.
If gasoline was twice the price, and the extra tax used to subsidize non-wheat / non-soy local farm produce, we'd have a winning combo.
By making the price expensive because of a tax, tax credits could be given as appropriate. (like commercial transportation, taxis, etc)
My other pet-peeve is plane travel is too cheap. Most people I know that travel Montreal-Toronto never take the train, as the train ride is more expensive.
The "losers" like the middle-class buying cheap homes in the suburbs and driving over one hour to work everyday, will car pool. Hybrids will become more popular.
I agree with the premise that we drive far too much and drive many times when we could walk.
However, driving children to and from sporting activities or school is not necessarily a waste...it's a safety measure. Child abductions tend to happen along the way to or from a regular activity (sports or school) when the child is alone and not paying much attention (because the activity or path is so routine).
Yes, it would be lovely if we all had the time to walk with our children to/from these activities. But, especially in single parent homes, it just isn't possible time-wise where a parent must drop off a child on the way to or from work.
I'm not sure that this is the best example of oil waste. Far more germane is the person who drives 8 blocks to the gym.
spycygrl: What you say is rubbish, abductions don't occur nearly as often as people try to make you believe but nevertheless a nice excuse to keep your kids safe in the car just to ease your own mind.
But it has to be said that roads, footpaths and playgrounds these days are devoid of kids because they are either behind their playstation or else in mums car to soccer practice.
I send my son to school by himself when he was 8. On a push bike. a 2.5 km ride to school. After training of course. Back then he was the only kid that had to ride to school. But that changed. A few months later another kid took the bike and then another end another. They team up, have a great chat on the way.
Nowadays the road is filled with kids of all ages on their way to school, walking and biking. The schools 10 bike parks has been extended to accommodate the increase in bikes. I put it down on that initially lonely son of mine who braved weather and wind on his daily trip to school.
By claiming the roads back for kids you automatically make them safer because nothing will go unseen with that many kids on the road. There was never a single incident by the way.
That school also had a great initiative called the "walking schoolbus" The "bus" would leave at a set time from our neighbourhood guided by volunteer parents. Kids would show up and walk in a loosely guided group to the school.
Now my son has moved to an intermediate school which unfortunately is too far to walk or bike but now he uses public transport to find his way.
The "danger" for kids on the roads is mostly in parents minds.
The University of Cincinnati teamed up with the Metro to offer anyone with an id a free ride starting May1. To get a jump on it and see if I like it, I started last week. Man! its great, I think I'm weird because i enjoy getting to work and back stress free. Of course everyone I tell this to looks at me like I have a third arm sticking out of my forehead. This is the perception that needs over come. Ever when the bus ride is free, people would rather drive.
While I agree that we would all benefit with smaller or simply more fuel effecient cars, I think Jim Kenzie is just a major league asshole if he thinks gasoline is too cheap. But then it is the Toronto Star, or as it is more popularly called Pravda North.
Gasoline is not "basically free". Unlike Kenzie and many of the trust frund tree huggers, some people actually do not have money shooting out of our asses that gasoline should be doubled.
Jim has always been a pussy with his pathalogical dislike of big cars, but if he thinks gasoline is too cheap, then he is a perfect example of why the green movement is 90% rich white kids and 9% rich old idiots.
I think there is simply too huge a disconnect between what the green elite thinks and what everyone else thinks.
In the EU, especially the UK, we have massive tax on fuel to compensate for this. It also allows government to earmark revenue from fuel to use for environmental policy, just like revenue from speeding tickets is meant to be used for traffic calming; and revenue from cigarettes is meant to go to the NHS.
I live in Finland, northern Europe. We are accustomed to high gas taxes. 80% of our gas price consists of tax, further used to keep the public roadsystem serviced. Our gas costs about $6,50 per gallon ($1,70 per liter). That is a very good reason for us to push down the consumption levels of our cars. This has been the level of gas tax in Finland for atleast the past 20 years and not even all the tax funds are spendable on public roads but they are also used to fund school system, public parks etc.
I'm sure that this kind of tax would never be accepted in the united states, but I hope it gives some thought on the subject. A little perspective to it. High taxation is, if a bad idea otherwise, a good motivator to lower fuel consumption and thus reducing CO2 gases in the atmosphere.
If you agree with this, which I do, you can see why putting pressure on the auto manufacturers is only part of the solution. This explains why CAFE is a failure. It's a waste of time to complain that there are Hummers and Denalis on the road when their operation is "basically free."
I've been saying this for a long time, tax the gas. CAFE might make all vehicles somewhat more fuel efficent but if you really want to make a big difference, change peoples behavior. More expensive fuel will, cause people do drive less, make more efficent vehicle choices, car pool, take public transport. Auto makers will be forced to provide more efficent choices as consumers demand it. Over the long term people will choose to live closer to work. I walked and biked to school from the time I was 6 and it didn't hurt me.
Yes USA gets cheap oil. Tey sould tax oil Tax Oil higher and give rebates to people who drive fuel efficent cars.
Rubbish.
Tax is regrssive. Poorer people pay relatively more for taxed items than the rich.
Motor fuel tax also gives governments money to build roads, encouraging car use, thus putting pressure on governments to build more roads. Therefore, the more tax motorists pay, the more they'll use the fuel!
A more equitable system would be to use energy quotas, capped and reduced year on year, alongside tackling energy poverty.
It's a simple system which means that, if you reduce your energy usage, you have spare quota to sell to those who are profligate.
Daithi...tax doesn't have to be regressive if you use tax-shifting as proposed in the case of carbon taxes. If the govt reduces payroll tax, for example, of the equivalent amount, you kill two birds with one shot. You create incentive for saving energy without increasing the tax burden.
Oh, and Carbon Tax is better than a cap and trade system. See FAQ #20 on Carbon Tax Center.