"In real (inflation-adjusted) rather than nominal dollars, $3.07 is less than gasoline cost in 1981."
I was wondering when someone would post that fact here. I'm not so sure that the price of fuel is out of line. What I do know is that the government should not be stepping in and telling the oil companies, or anyone else, how to run their business. At the same time we shouldn't be bailing out businesses when they run themselves into the ground, but that is another matter. We still have free enterprise in America. How many people spend $1.00 or more for a 1 liter bottle of water?
We will continue to burn unbelievable amounts of gasoline and dump pollution into the air until a cleaner,
less expensive alternative comes along. The race for new technology is driven by potential profit. The more expensive gasoline becomes, the stronger the motivation will be to develop better alternatives.
Truth be told, if gas was $1.00 per gallon, I'd probably be driving my truck daily instead of my economy car and burning more fuel. I know that I'd be burning more "100-not-so-low-lead" aviation fuel.
