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gas prices not high, old calculation

melanie
August 31st, 2005, 04:38 PM
hi guys, i was speaking with an old miner yesterday who told me of an old calculaiton that was used to determine if gas prices were high or not. i odnt know if its ever been applied outside aussie miners worlds but it really made sense...

ok he said that in the old days, it was common knowledge that 1gallon of fuel should equal the price of a packet of cigerettes and two schooners of beer. if it equaled this price it was considered a fair price to pay for a gallon.

so he said that 1 gallon of gas (thats 4 and a bit litres) should equal the price of cigs, and that is $7 for 20. so paying 1.31 a litre, times that by 4 and it pretty much equals around $7. so using his theory its all relative with inflation and the general price of all goods. he said this calcualion also works for beer, 2 schooners equals 1 gallon...crently 1 schooner is about $3.60 so that equals the price of a gallon and smokes as well...

just a bit of food for thought on the issues...

apparently the miners are not complaining much due to their faith in hte calcs, they think its all normal really.

food for thought...

very clever indeed and really made me raelise how inflation can work over everything.

jjgeonerd
August 31st, 2005, 06:08 PM
I have no idea what cigarettes cost, but if a schooner of beer is the same as a pint, then 2 pints of beer in the US is about $7...that's be an expensive gallon of gas! :eek:

Those of course are not happy hour prices...and are for a good northwest microbrew (or a Guiness). Because, as everyone should know, life it way too short to drink Bud Light! :p

Writing4Fun
August 31st, 2005, 06:26 PM
Ahh, Mel, way to put it all into perspective. ;) Actually, I don't drink or smoke, so I have no idea what either of those two items cost. So, I'll have to take your word for it. :D

Too bad inflation doesn't work the same way on my or my husband's salary as it does on everything else in my little world. :rolleyes:

Karin
August 31st, 2005, 07:14 PM
I'll take a keg of beer & a carton of smokes Mel, when can I expect the shipment?

Party at Karins....I need a major stress relief.

Beem yourself over here right now...I'll make room for you on my couch.

Writing4Fun
August 31st, 2005, 07:30 PM
Beem yourself over here right now...I'll make room for you on my couch.
That dusty ol' thing??http://www.discodelic.netfirms.com/other-jumpingonsofa.gif Why don't both of you head up here until the hurricane season is over? Lots of room for people and doggies to just chillax.http://www.discodelic.netfirms.com/other-bubblebath1.gif

Karin
August 31st, 2005, 08:35 PM
That dusty ol' thing??http://www.discodelic.netfirms.com/other-jumpingonsofa.gif Why don't both of you head up here until the hurricane season is over? Lots of room for people and doggies to just chillax.http://www.discodelic.netfirms.com/other-bubblebath1.gif

Got milk? (for Prin)


Got Jello shots? (for me!)



My nerves are racked....Pags is okay, my friend Karen in NOLA is on her way out now...I need sleep.

I wish I could wake up to a better report for the rest of these people. Life would be grand then.

Goodnight all...the flip side is a bitch & witch..the storms never scare me, it what happens afterwards.

Prin
September 1st, 2005, 12:44 AM
Oh, you brought milk?! Prin is a happy camper!

As for inflation, apparently gas was over a buck a litre here in the 80's... I was too young to drive, so I didn't notice (back then the ol' dad was complaining about high interest rates more than anything else).. Were any of you there? Did it really hit 1.02 in the 80's? I saw it in the Gazette, but they didn't say whether they were including inflation to try to match it with today's prices or not...

Remember when gas tanks had locks? I think they'll make a comeback. :(

Rick C
September 1st, 2005, 11:13 AM
Adjusted for inflation, the price of oil would have to be about $80 a barrel to be the same price it was in 1973 I believe, at the height of the OPEC oil embargo.

Oldtimers will remember forecasts in the late 1970's that oil would soon hit $100 a barrel and companies like Dome Petroleum were going nuts with expensive drilling programs in anticipation of that, something which later bankrupted them.

OPEC figured out from the 1973 embargo that withholding supply not only kills infidels like ourselves, but also kills them as well since they have zero else going for themselves.

So, OPEC began, in some ways, to manage the global economy, always ensuring there was some modicum of price stability at a point that discouraged alternative fuels.

That was the status quo for about 25 years.

China and India are the new dynamic that wasn't in the equation before, hence the squeeze. OPEC has probably also learned the global economy can get by on $50 oil quite well, and that will probably be the new target in the future.

But inefficient users in China and India are permanent fixtures and alternative technologies and nuclear power will probably take hold now. . . . . in fact, if I'm not mistaken, China itself is planning to build about 40 nuclear plants.

Oil will come down again . . . . but we may still be a ways off.

Just my thoughts.

Rick C
www.goldentales.ca

Schwinn
September 1st, 2005, 11:20 AM
I think what you're referring to, Prin, is the inflation adjusted cost of gas. I worked at a gas station in high school, and it was in the low to mid 40 cent range (I worked in Chatham, and the US customers used to complain about how much it cost to fill thier cars in Canada. Almost surreal now...)

melanie
September 1st, 2005, 05:02 PM
lol, your hilarious, yes im up fort hat karin, and i will bring a few caseroles for your fridge, there saying on the news you dont have much food there at the mo, so ill bring you some, with the beer and cigs of course :D

yeah when the old miner was telling me this theory i found it quite comforting for sure, i odnt know why, but i suppose its the reference to the price of beer, which of course i will pay anythign for, so i suppose it didnt seem expensive to pay that much for fuel if it can be described and compared to the relms of beers yay....

W4F i think thats the heart of the problem, wages have not in my opinion, been increased to truly match the price of living today, it would not be so hard for everyone if it was jsut reasonally adjusted, as my sister said the $6 tax cut she got last year does little for her family or thier fuel costs, it needs to be realistic to be useful to anyone....

now i think im jsut gunna start fillin the car with beer, that way it will cost the same, and i can drink it too, yayayayay... :D

Prin
September 1st, 2005, 11:04 PM
I think what you're referring to, Prin, is the inflation adjusted cost of gas. I worked at a gas station in high school, and it was in the low to mid 40 cent range (I worked in Chatham, and the US customers used to complain about how much it cost to fill thier cars in Canada. Almost surreal now...)
LOL you're really dating yourself in that one Schwinn (and not in the good way like I did- hee hee :p ).. :D :D

Schwinn
September 2nd, 2005, 09:29 AM
LOL you're really dating yourself in that one Schwinn (and not in the good way like I did- hee hee :p ).. :D :D

Well, if it means anything, I rode my bike to work because I was too young to drive :p