Raise Gas Taxes NOW…(or, Justifying Demand Destruction)

The chart below presents inflationdata.com yearly average data, plotted on a logarithmic scale. This unit of time flattens out the spikes in prices, which is probably a more valid measure of sustained price.

The blue line in the graph is the raw price, the pink line is the inflation adjusted price. This kind of a plot does have a more interesting story to tell. The data tell us that the price of oil averaged $51/bbl in 2005, whereas oil averaged $66.20/bbl in 1981, adjusted for inflation. With this data, we’re at 76% of the 1981 price!

The data tell the story. Find some method of demand destruction. Now.

How we get from the 2005 price to the 1981 price and when we do it is going to be one of the crucial public policy decisions of this generation.

And the time to make that decision is not far in the future.

More after the jump at The Oil Drum…