Funny that Europe is having lower inflation than US, but higher gasoline prices than US.
Funny how taxes can distort inflation statistics.
USA gasoline price is commodity price + delivery + overhead + profit + 18 cents fed tax + state tax
Europe gasoline price is commodity price + delivery + overhead + profit + $3.18 tax
So if commodity price goes up by $2 …
The USA total goes from $3.00 to $5.00, a 66% increase.
And the Europe total goes from $6.00 to $8.00, a 33% increase.
Wow, Europe has lower gasoline inflation!!! Of course, their price also went up $2 a gallon, but percentage wise it is lower. Big deal! The customer still feels the extra $2 for every gallon.
The same applies to adding a VAT of ~20% to nearly every item sold. It causes a lower inflation percentage to be calculated, but it still has the same effect of increased prices to the end consumer.
Wow, Europe has lower gasoline inflation!!! Of course, their price also went up $2 a gallon, but percentage wise it is lower. Big deal! The customer still feels the extra $2 for every gallon.
USA gasoline price is commodity price + delivery + overhead + profit + 18 cents fed tax + state tax
Europe gasoline price is commodity price + delivery + overhead + profit + $3.18 tax
So if commodity price goes up by $2 …
The USA total goes from $3.00 to $5.00, a 66% increase.
And the Europe total goes from $6.00 to $8.00, a 33% increase.
Wow, Europe has lower gasoline inflation!!! Of course, their price also went up $2 a gallon, but percentage wise it is lower. Big deal! The customer still feels the extra $2 for every gallon.
<<The USA total goes from $3.00 to $5.00, a 66% increase. And the Europe total goes from $6.00 to $8.00, a 33% increase.
Wow, Europe has lower gasoline inflation!!! Of course, their price also went up $2 a gallon, but percentage wise it is lower. Big deal! The customer still feels the extra $2 for every gallon.>>
After a second look at your numbers, I think they are bogus.
Where are your links to all the numbers and calculations or did you just pull them out of thin air?
Which specific number do you claim is bogus? Are you saying that gasoline in the USA a year+ ago wasn’t $3? Are you saying that gasoline in the USA today isn’t $5? Are you saying that gasoline in Europe a year+ ago wasn’t $6? Are you saying that gasoline in Europe now isn’t $8? Are you saying that wholesale gasoline didn’t go up by about $2?
Which specific number do you claim is bogus? Are you saying that gasoline in the USA a year+ ago wasn’t $3? Are you saying that gasoline in the USA today isn’t $5? Are you saying that gasoline in Europe a year+ ago wasn’t $6? Are you saying that gasoline in Europe now isn’t $8? Are you saying that wholesale gasoline didn’t go up by about $2?
Thanks for providing the link to the European gasoline prices for June 2022. I still do not know how much the European gasoline prices increased in one year. Even if your number of $6/gal for Europe a year ago is correct, it still makes European gasoline inflation (33%) smaller than US gasoline inflation (66%).
So in conclusion Europe has lower overall inflation and lower gasoline inflation than the US.
Thanks for providing the link to the European gasoline prices for June 2022. I still do not know how much the European gasoline prices increased in one year. Even if your number of $6/gal for Europe a year ago is correct, it still makes European gasoline inflation (33%) smaller than US gasoline inflation (66%).
So in conclusion Europe has lower overall inflation and lower gasoline inflation than the US.
So you agree with my initial post. Why didn’t you say so at first? Instead of claiming “bogus” numbers?
The fact is that Europe, percentagewise, has lower gasoline inflation (and lower overall inflation). And it is for the reason I described … taxes. BUT Europeans are still paying $X more per gallon more or less just like the Americans are paying $X more per gallon. So, if you use 50 gallons a month, you are paying an extra 50 * $X each month … whether you are European or American.
So in conclusion Europe has lower overall inflation and lower gasoline inflation than the US.
Exactly. And now you understand why … from my arithmetic lesson.
If European gasoline inflation matched U.S. gasoline inflation, then they would be paying $10/gal instead of $8/gal.
Exactly correct. And likewise if the USA (Federal) tax on gasoline was $3.18 instead of $0.18, then the USA gasoline inflation would similarly be a smaller percentage.
But like I said, everyone, Europeans, Canadians, and Americans are paying roughly about $2 more per gallon.
If European gasoline inflation matched U.S. gasoline inflation, then they would be paying $10/gal instead of $8/gal.
I was paying $8.40/US gallon in the UK last week. Some folks in the US are shocked at that, but our rental car was getting 40mpg+ (US), a small SUV with 5 people and their luggage in it.
Didn’t have much go in it, though. It was nice to get back to our EV.
