Monday, October 03, 2005

A gallon of gas

The Washington Post just ran an article about global fuel prices. Apparently, many developing nations have been using subsidies to keep the price of gasoline and heating oil down. As oil prices continue to rise, these subsidies have not been able to withstand the increases. While Americans are unhappy, citizens of many countries are rioting. Nigeria produces oil, but even with subsidies the article reports that a gallon of unleaded costs $5 in a country with a median income of $5000. The report blames the rising prices on increased global demand due to increased imports by China and shortages in the Gulf of Mexico caused by the hurricanes.

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