They claim that this is due to an impending Israeli attack on Iran and a weak US economy. $150 per barrel is the price that they predict for the 4th of July. That’s an interesting choice of date, I wonder whether they will be talking about “independence from Arabian oil”…
The New York Times has an interesting article on fuel prices . Apparently sales of SUVs are dropping significantly.
The US senate is now debating a cap on carbon-dioxide production. The NY Times article suggests that if the new “carbon taxes” could be combined with tax cuts in other areas. If implemented correctly it would allow people who want to save money to reduce their overall tax payments by reducing fuel use. Also as increasing prices will decrease demand (thus decreasing the price at import time) it would to some degree mean transferring some revenue from the governments of the middle east to the US government.
The article also states that the Ford F series of “pickup trucks” was the most popular line of vehicles in the US for more than 20 years! But last month they were beaten by the Toyota Corolla and Camry and the Honda Civic and Accord. Now Ford needs to put more effort into their medium to large cars. With the hybrid Camry apparently already on sale in the US (their web site refuses to provide any information to me because I don’t have Flash installed so I can’t check) and rumored to be released soon in other countries Ford needs to put some significant amounts of effort into developing fuel efficient vehicles.
According to a story in the Herald Sun (published on the 23rd of April), survey results show that 1/3 of Victorians would cease using their car to get to work if the petrol price reached $1.75/L . Now the Herald Sun has run a prediction (by the assistant treasurer and the NRMA) that $1.75/L will be reached next week (an increase of just over 10 cents a liter) .
The good news is that there will be less pollution in Australia in the near future (even if $1.75 is not reached I am certain that the price will increase enough to encourage some people to use public transport). The bad news is that our public transport is inadequate at the moment and there will be significant levels of overcrowding.