Posted by: Martin Scherer | 06/03/2011

Will gas hit $8 a gallon

…It already has.

Back in 1999, on our first visit to Florida after buying a house with no furniture,  I stood in Wal-Mart looking at a surprisingly inexpensive, good quality, garden table and chairs. My only question was how do I get it home in a small rental car.

Borrowing string and cardboard to protect the car roof, I started to tie it on. A yank passed saying “You can’t do that.”

“Oh yes I can,” I replied, “don’t forget Falklands.” That little skirmish now seems petty against Iraq, but it was a hero’s birthday for Maggie Thatcher and British troops.

“Oh no you can’t,” replied the yank, “Put it in my truck.”   

That was my first drive in a US truck. I was not about to say ‘no thanks’. It was also one my first experiences of American’s amazing generosity. He went ten miles out of his way, refused any money for gas, and yet on the way passed a gas station moaning about the sharply rising cost of gas. $2.05 a gallon.  

I laughed and said, “Try UK gas prices”. Today Americans pay around $2.50 and worry about gas hitting $4 per gallon. UK petrol has just hit $8.50 per US gallon.

Oil is an international commodity. The supply cost is the same which ever country you buy it. The difference in Europe is tax.

That’s socialism. How do you think the UK nanny state pays for free healthcare, free education, an army of social workers, and around a million ‘unfit’ for work? Unfit does not mean disabled. Unfit means they have some kind of issue with work. Like they would prefer not to do it.

Why hit gas? Driving is now an environmental sin. Like smoking. A pack of twenty costs around $1 to supply, but nearly $10 to buy in the UK. Politicians cannot be honest and fear taxing people, so they tax sins. American politicians are now sin taxing cigarettes. Pity politicians on both sides of the pond don’t tax cannabis and prostitution. That tax free super profit goes to criminals.

The exorbitant tax on oil leads to high prices of all oil products. The plastic pipes all Americans use in houses, costs around ten times as much in the UK and much as copper pipe. So UK houses are still built with copper pipe. Copper takes three times as long to fit as plastic, so labour costs are three times as high as the US. Imagine the total cost and you start to realise why the average UK house is less than half the size and costs three times as much as the average US house.      

There was a time when alcohol endured a luxury tax in the UK. However it seems UK politicians wanted people to have a drink to drown their tax sorrows. As in the US, supermarket beer costs little more than coke. It seems getting blind drunk is no longer a sin. So it’s fine to binge every weekend, get involved in street brawls, fill the emergency rooms, vomit or urinate in the street, go home to boozers droop sex and hit the wife, kids and increasingly the husband.

One wonders where politicians come from. Most UK politicians have no experience of real life or work. Most today come from wealthier families, go from school to university, and then into political jobs until they get elected into government. They haven’t a clue of the impact of their meddling in the economy.



  1. Ogden, Utah, USA. (ca. 2011 Mar. 15).

    Petrol: $3.40/U.S. Gal.
    Cigarettes: Cheapest, $4.60/Pack of 20 Class A. Often seen, ~$6.70

    The lower prices here reflect many indirect subsidies involving the tax structure that favors consumption, and military support for the security of imported energy supplies.

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