If you ask almost anyone how they feel about oil companies and gas prices, chances are you will be met with the usual diatribe about greed, market manipulation, and lack of disposable income that keeps most people thinking oil companies are the most evil and economically abusive institutions around. But is that really true?
Gas prices are going up—no one disputes that. But the fact is, even at these prices we still get a bargain at the pump.
As of this month, the national average cost of gas is $3.67 per gallon. In comparison, the average 20 oz bottle of water costs about $1.99. That comes out to $11.94 for a gallon of water! That’s around three times what you would pay for the same amount of gas! Sure, it costs money to manufacture uniform bottles filled with safe drinking water, but it’s child’s play compared to drilling for oil, refining and transporting it, dealing with security risks involved, and then getting it to the gas station and providing consumers with the means to fill their tanks without blowing themselves up.
But maybe you don’t drink bottled water and would prefer to compare to orange juice. A gallon of moderately priced orange juice can cost anywhere between $5.00 and $8.00 a gallon! Is your sweet tooth bothering you? The average cost of pint of ice cream is currently $3.79. That’s $30.00 a gallon!