March 3, 2000
To Ontario Today, CBC Radio One, onttoday@ottawa.cbc.ca
Dave;
The price of gas goes up because oil is a non-renewable resource. Every day, the world's total supply of oil becomes smaller. Every day the remaining oil becomes more expensive to find and extract. Every day, the demand for oil becomes greater. Therefore, every day oil becomes more valuable, and from time to time the price will go up.
As oil becomes scarce, the rate of price increases will accelerate. This will continue until all the oil in the world is gone.
We hear a lot of preaching of the doctrine of the holy market and get the government out of my face, but when the price of gas goes up in a perfectly predictable fashion, the tune changes. Now it's cap the price of oil and regulate the oil industry and subsidize gas-guzzling industries.
What can we do about the price of gas? There are only two things:
a) Use energy more efficiently.
b) Develop alternate sources of energy.
One of your guests suggested that all gas taxes should go to roads. This would only encourage people to burn more gas.
We should put gas taxes into public transit, including railways. This will enrich our lives, improve the quality of the air we breathe, conserve valuable resources, and ultimately, reduce the price of gasoline.
Wayne Smith
Toronto