You do not believe the headline? You should – if you live in the Eurozone! But let me start with my job. I am engineer in the automotive branch. All OEMs invest large amounts of money into the development of cars that save fuel to make mobility for the customer affordable due to the increasing price of oil. Well, this contradicts to the headline, but it is easy to explain: In the year 2000 you had to pay about USD 1.20 for EUR 1.00. The barrel Brent did cost USD 60, which equals EUR 72.50. Today the situation has changed. Oil costs about USD 120.00 for one barrel Brent, BUT you get USD 1.55 for EUR 1.00. That makes a price of EUR 77 for a barrel of oil. So the increase in price in the Eurozone is marginal. But we pay more than twice as much for gasoline and diesel! So it is clear, that the customer is fooled. Exxon, Shell and others do profit from our perception that the oil price is exploding, which is actually only true if we would pay them in Dollars. But they take our expensive Euro and we have nothing to do against it. Pointing out that would be the job of our cartel authorities, but nothing is done – maybe due to tax intakes which increase analogously. Any suggestions for changing that?
Filed under: Brain Farts
May 14th, 2008 - 10:28 pm
Good Layout and design. I like your blog. I just added your RSS feed to my Google News Reader. .
Jason Rakowski