Post
Topic
Board Economics
Re: When I started driving.
by
pooya87
on 04/07/2022, 17:51:42 UTC
I've just had my 80th birthday,
Happy birthday bro, wish you live to see 120.

Quote
When I started driving I could ask for 4 gallons of petrol ( there weren't any serve yourself pumps then), and I could give the attendant £1, and say keep the change. $ gallons today will cost over £36, and I have to serve myself.
That's what sanctions do, they are a double edged sword that cuts the wielder too. For example when Venezuela was sanctions years ago many American companies were screwed because they had a lot of long term investment in Venezuela's energy sector (which we have taken over now, hush!). When Iran was sanctioned Europe was screwed because they lost access to one of the biggest energy resources including both gas and oil. When Russia was sanctions Europe was more screwed because they lost access to another one of the biggest energy resources.
Hence the high inflation and the high energy costs.

Seeing your numbers worries me a little though because if a gallon is 4.5 liters then a gallon of petrol here is worth about £0.19 ($0.22) which is a ridiculous difference and we know what happens when there is such a massive gap in two markets: arbitrage or better said smuggling of fuel....