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Greene 11 (0:57)
Topic(s): Government
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Video Transcript

If the price of gasoline goes up this will provoke changes but not big changes. The most recent estimates are that a doubling in the price of gasoline would cause American motorists to drive five to ten percent fewer miles and that's not much. Furthermore, it would take an enormous increase in the price of oil to double the price of gasoline. You can essentially take the price of oil and divide by forty-two to get how much oil cost is in a gallon of gasoline. So if oil costs forty-two dollars a barrel, there's a dollar worth of oil in a gallon of gasoline. So to get the price of gasoline up to four or five dollars a gallon through the price of oil, we'd have to have oil prices exceeding a hundred dollars a barrel.