How to encourage fuel conservation

[Jason]

Make the price you pay at the pump an exponential function of the volume you buy.

Example: The current price for a litre of gasoline is about $1.35. Assuming an average daily usage of 30 litres per vehicle, the equation could be something like

price = litres*(2.5/2)/48

30 litres would cost you $43.88 or $1.46 per litre.

20 litres would cost you $17.62 or $0.88 per litre.

40 litres would cost you $83.83 or $2.10 per litre.

So it would discourage people from using excessive fuel while rewarding those who use less (a single litre purchase would cost a single penny). If this was put in place with a program to control number of times a person may by fuel per day it would encourage lower fuel consumption while indirectly jacking up the price of fuel. Environmentalists and oil barons are both happy. Also, the prices on gastation signs would be given as equations!

[FBM]

Interesting. That could work, maybe. How would you control how many times a person fueled up in a day? And what about small amounts sold for use in lawn mowers, etc? Or very large amounts for freight vehicles?

[cronus]

Distorting the market like that wouldn't work. People would take to stealing oil in bulk.

[Jason]

Make the price you pay at the pump an exponential function of the volume you buy.

Example: The current price for a litre of gasoline is about $1.35. Assuming an average daily usage of 30 litres per vehicle, the equation could be something like

price = litres^(2.5/2)/48

30 litres would cost you $43.88 or $1.46 per litre.

20 litres would cost you $17.62 or $0.88 per litre.

40 litres would cost you $83.83 or $2.10 per litre.

So it would discourage people from using excessive fuel while rewarding those who use less (a single litre purchase would cost a single penny). If this was put in place with a program to control number of times a person may by fuel per day it would encourage lower fuel consumption while indirectly jacking up the price of fuel. Environmentalists and oil barons are both happy. Also, the prices on gastation signs would be given as equations!

Fix

[Jason]

Distorting the market like that wouldn't work. People would take to stealing oil in bulk.

Why steal and risk jail time, when you can just use less and save a lot?

[Seth]

Profligately use up all the fossil fuels on earth in an orgy of consumerism and conspicuous consumption...for at least the next 20 years or so...until I'm dead.

Then y'all can adapt or die.

[Tyrannical]

[cronus]

Geek stupidity wisdom abides.

[rainbow]

Distorting the market like that wouldn't work. People would take to stealing oil in bulk.

Distorting markets always works, but not always in the way intended.
...in fact hardly ever in the way intended.

[Rum]

Seems likely to be a well established practice. From http://www.bbc.co.uk/news/uk-politics-22540650

David Cameron 'deeply' concerned by oil price fixing claims


David Cameron is extremely concerned by claims of price fixing by major oil companies, Downing Street has said.

The prime minister's spokesman said it was "deeply worrying" if prices have been driven up for consumers.

Oil giants including BP and Shell are facing claims they have been fixing prices for more than a decade.

It follows a raid on the offices of BP, Royal Dutch Shell, and Norway's Statoil by European anti-trust regulators.

The companies said they were co-operating with investigators.

In a Commons statement, Energy Secretary Ed Davey said the Office of Fair Trading (OFT) was working with European Commission investigators but stressed their inquiries were at a very early stage and urged MPs not to "jump the gun".

But he promised the "full force of the law" would be brought down on the companies if the allegations were found to be true.

"This government is deeply concerned by any allegation that prices for consumers could have been artificially or unnecessarily driven up," the Lib Dem cabinet minister told MPs.

"The UK government and regulators will provide any assistance necessary to the European investigators and we expect the companies concerned to fully comply with these investigations."

He also defended the Office of Fair trading which found no evidence of price fixing when it carried out its own investigation into the petrol market last year.

Tory MP Robert Halfon, who has been campaigning for cuts to fuel duty and greater transparency, attacked the OFT's inquiry as "limp-wristed and lettuce-like".

Despite calls for a full probe into petrol pricing, amid claims of price fixing by a whistleblower, the regulator had failed to spot any of the allegations now being investigated by the EU, said Mr Halfon.
'Shocking behaviour'

He called on the government to change the law so that people could be jailed "for fixing oil prices" and for any cash recovered in fines, if the companies are found guilty, to be returned to motorists.

Caroline Flint, responding for Labour, said the allegations "if true" were an example of "shocking behaviour in the oil market which should be dealt with strongly".

She called on the OFT to re-open its investigation into the petrol market.

Mr Davey said the OFT was an "independent body, a strong body", which has powers to determine its own investigations and the government could not interfere.

He rejected accusations of complacency from some MPs, saying the government had tightened up competition laws.

European Commission officials said its investigators made the "unannounced inspections" on Tuesday amid concerns that "the companies may have colluded in reporting distorted prices".

It did not name the firms, and emphasised that the raids did not mean the companies were guilty of any charges.
'Huge impact'

But BP, Shell, and Statoil, and also the oil pricing agency Platts, confirmed that they were working with the authorities in their inquiries.

In a statement the European Commission said: "Even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers,'"

As part of the investigation, the Commission said it was examining whether the companies may have prevented others from participating in the pricing process "with a view to distorting published prices".

It added: "Any such behaviour, if established, may amount to violations of European antitrust rules that prohibit cartels and restrictive business practices and abuses of a dominant market position."

[rainbow]

This must be a joke.
The petrol price has been held up to be artificially high due to taxes.

A case of the pot calling the kettle black.

[JimC]

Every cent I save by driving for better economy can be spent on gin...

I rest my case...

[cronus]

Real competition for a declining commodity will push prices even higher. Obvious that things are coming to a head with price stabilising cartels and the full consequences of peak oil can't be far behind....need to prepare. TSHTF soon now. This isn't the good news it appears.

[rainbow]

Every cent I save by driving for better economy can be spent on gin...

I rest my case...

Biofuel can be made by transesterifaction of bacon fat with gin.

...that would teach Big Oil!

[Tyrannical]

Is David Cameron 'deeply' concerned enough to take on OPEC?

The funny thing about OPEC is that all the member nations are food importers.