[giovonni]

Originally Posted by Steve_A

Hi giovonni,

I`m not too sure about petrol hitting just $1 a gallon. For that to happen, a barrel of oil would need to be around $20, or the very low purchase tax that the US would have to be lower. That of course would create a double whammy for the US government, as the income from the purchase tax as it stands would be halved, and if it was lowered could even be quartered.

It`s at this time that the US needs to be looking forward to ways in which they need to increase income through ways of taxation, not lowering it.

Also lowering the price of crude oil could make current and future exploration of oil inviable, because there would be a reduced return of investment for the oil producing companies.

Of course we would also need to look at political reasons for reducing the price of petrol at the pump. Reduced petrol prices could take the attention away from the real problems of the American economy to try and quel the frustraion of the public over other other problems that they might have, like lack of credit. As I understand it, the average American bases their view on the economy by the price of petrol.

I believe that the artificial devaluing of petrol can only be kept down temporarily.

Best regards,

Steve

I agree with you Steve; From the financial to the auto- most of these executives are talking from their backends! gio