The true cost of gasoline is actually far higher than $4 a gallon. 

Yes, that's partly because the price per gallon doesn't reflect the subsidies we give to oil companies but that's not even what I'm referring to.

I'm referring to the billions of dollars we spend each year just to protect our oil interests.  Add to that the health problems created by burning fossil fuels (increased rates of asthma, bronchitis and even cancer) and the true cost of a gallon of gas is easily double what we think we pay at the pump or more.

As usual the oil companies externalize costs that end up being paid by Joe Taxpayer.

So the oil we think is so cheap is not nearly as cheap as we think it is. Alternative energy production will be more expensive in the short/medium term yes, but the price gap is not as large as it appears to be.

by Tom Hanc on 07/15/2008 04:52:09 PM EST

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