It seems like ages and it actually was a different world back then. But just before the events of Sept 11 2001 a barrel of crude oil cost eighteen dollars! Today it is over ONE HUNDRED DOLLARS! But what is a dollar worth? Certainly it buys considerably less than it bought seven years ago. This much we know for sure. And we are told every day about the decline of the dollar.

Integrating inflation we get a very different view of the cost per a gallon of gasoline than our eyes tell us when we see a 3 or a 4 at the gasoline station just East of the dollar sign.

If we estimate the price of gasoline proportional to wages in 1920 we could now be confronting a gallon of gasoline at more than $10! It can truthfully be concluded that the cost of a gallon of gasoline has decreased since the 1920s continuously if factors such as inflation and the increase in average earnings are properly considered.

Another aspect that Americans could be appreciative for in regards to one of the things that we most like to complain about, is the comparison of gasoline prices in the US compared to European prices.

A gallon of gasoline in Europe is now passed $5 or more. And what is most unfairl is that roughly one-half of that goes only to paying oppressive taxes! In the USA, the percent that you pay on a gallon of gasoline that taxes account for, including inflation, which Presidential candidate Ron Paul correctly regards as a tax, is about 25% or just over 70 cents. Without considering inflation as a tax the amount is about 47 cents or around 13% compared to 50% in Europe. (Of course you do have to add on 10% inflation whether you wish to regard it as a tax or not).

If we look at what a gallon of gasoline costs compared to a gallon of other every day items if they were sold by the gallon, this will surprise you.

A gallon of milk is $2.99, compared to a gallon of gasoline which is currently approximately $3.25 or so. A gallon of shampoo would be about $40. A gallon of real maple syrup would be about $57. Jack Daniels would be about $100 per gallon! A gallon of Crisco oil would be about $75 and a gallon of nasal spray would be about $2.615!

So why do we make such a loud fuss about the price of a gallon of gasoline? I consider that there are two things and one is the profit margin of the oil companies and the other is the rapidity at which a gallon of gasoline burns off.

For instance, how much time does a gallon of gasoline last you? Ok, how long would a gallon of nasal spray last you (depends on the size of your nose I propose ha ha)? How long could a gallon of Jack Daniels last you? You can take the 5th on answering that one!

So that is one cause. And another is the profit margin of the oil companies keep and the greedy reputation of these companies starting in the days of Rockefeller and more recently to J R Ewing!!

Exxon profited $8 billion from January through March of 2007. They average around ten percent profit on EACH $1 worth of gasoline sold

So it isn't the price of a gallon of gasoline more a matter of how speedily we consume a gallon of gasoline and the unacceptable profit margin grabbed per gallon by vested interests who we see as wanting to rip us off for a dollar.

So the real solution is in how do we increase our gas mileage

And the best answer to that is by converting from gas to gas/hydrogen hybrid engines, thereby improving our gas mileage by 22-32% or more. Or by converting to a fuel cell hydrogen only system which means you will never have to purchase another gallon of gas for the rest of your life!