Re: Check-in the Petrol (gasoline) rates in your area..
I'm reading that the Arabs won't stop producing despite dwindling demand and competing sources of oil ex American oil. So supply now is exceeding demand. Makes me mad that when gas was 4 dollars people were saying "oh it's because oil is running out", prompting wars to get ahold of oil reserves. Now, ironically we have too much and we don't need it.
Effects on other aspects of economy are negative. People are losing jobs and companies are now folding. Hope all the companies who profited while working class paid arm and a leg for oil, their CEO's are enjoying all their profits and investments. Because their employees now are SOL.
Re: Check-in the Petrol (gasoline) rates in your area..
Its such a shame that people in Pakistan might not be getting the super low price of oil that rest of the world is getting. From what I can gather from web, people are still paying around 70-75 rupees per litre, which roughly translates to $2.7 per gallon. Avg prices in Washington DC area are around $2.10 so Pakistanis are paying 60 cents/gallon more. Perhaps this is due to the govt imposed taxes, but still sounds alot.
Things are going to get more complicated since the US imposed ban on Iran is now lifted, which means more oil in market. Saudis basically wanted to drive the prices low enough to kick the US oil producers out of market, but that hasnt happened. If prices stay this low, Saudia and couple other arab states are going to run out of their oil reserve money within a few years, even though Saudia has hundreds of billions of dollars in reserve to tackle low gasoline prices, but that reserve is declining steadily.
Re: Check-in the Petrol (gasoline) rates in your area..
There are exchange rate costs, there are transportation costs and there less/poor infrastructure costs that Pakistan incur more than a western country so a US average price and PAksitan avg price comparison is not apples to apples. Also, only 20ish % of Pakistan needs are from native sources where as in US its much more than 50% thus reducing other direct costs etc. Comparing for sake of comparing is good but should qualify statements.
Further, Pakistan economy is not 100% white as in US so for Govt to raise capital via Taxes, there are only few places like commodities, telecom etc. These taxes are what our Generals are using to fight war and proxy wars, politicians for their stuff and the overall development.
Just wanted to put your statement in context as idiots are running amock in Pakistan led by retard Khan about prices of oil with utter disrespect of how economy works.
You are right about high production by Saudies, in part its to drive US producers out but also in part to drive Shale Gas investments out. The advent of Shale Gas in US has significantly reduced energy dependency of the US. As a natural gas industry expert here, we are bringing natural gas driven fleets, natural gas power plant under EPA's clean power plan act etc. All of this will take toll on US need for Oil. Arabs are really tactical here and they are putting their future at risk.
Its such a shame that people in Pakistan might not be getting the super low price of oil that rest of the world is getting. From what I can gather from web, people are still paying around 70-75 rupees per litre, which roughly translates to $2.7 per gallon. Avg prices in Washington DC area are around $2.10 so Pakistanis are paying 60 cents/gallon more. Perhaps this is due to the govt imposed taxes, but still sounds alot.
Things are going to get more complicated since the US imposed ban on Iran is now lifted, which means more oil in market. Saudis basically wanted to drive the prices low enough to kick the US oil producers out of market, but that hasnt happened. If prices stay this low, Saudia and couple other arab states are going to run out of their oil reserve money within a few years, even though Saudia has hundreds of billions of dollars in reserve to tackle low gasoline prices, but that reserve is declining steadily.
