The Price of Gas

 

The price of gas has increased tenfold. Heating our homes and operating our industries has become enormously more expensive. Ruinously so, perhaps.

However, I reckon the cost of gas has remained pretty much the same.

The cost price reflects the cash needed to extract the fuel from the ground and transport it to the point of use. I doubt there's much difference in cost between now and pre-war in Ukraine. The huge leap in price only reflects the amount people are willing to pay for the stuff.

There's also a lot of talk in the UK about us having 'our own oil and gas'. As a country we have none. We gave it all away long ago to the likes of BP and Shell who are now free to sell it to the highest bidder. And that's where the money is going. Directly into the pockets of already over-rich people who have no need for more money but feel they are entitled to it anyway.

At 20p per therm, the fossil fuel companies were making handsome profits. Now, at 200p per therm, profits have become astronomical.

How can this be? Why should people who can least afford it be paying into the dividend pot for fossil fuel investors?

It's the system. The one we've been told for decades is the only viable way to run the world. We've been lied to. Sold a pup. Exploited.

The biggest contributors to the Conservative Party and individual MP's, apart from corrupt Russian oligarchs, are the construction industry. There's a reason for this.

Let me use the construction industry, with which I am familiar, as an example of the corrupt system which applies equally to every facet of business in the country and, in fact, most of the world.

Land, like the oil and gas beneath it, ought to belong to everyone but it doesn't. Those with the might to claim vast tracts of our country grabbed it while they could. So, most of the surface of our country is controlled by a group of wealthy landowners. Like the Queen. And Chinese investment companies. And the Russian mafia, sorry, oligarchs.

So, what's the cost of land? Not a lot. Especially if you stole it many years ago.

But the price? Agricultural land can be bought for £5,000-10,000 per acre. This reflects the profit that can be made from growing crops. The exact same piece of land with permission for housing will yield over £1,000,000 per acre when sold as plots to house buyers. Our planning system is designed to enrich  housebuilders. Corruption can be no surprise when such enormous profits are involved. Influencing politicians must be extremely good value for money otherwise why invest large sums in political contributions?

In the UK, the cost of a house has little relation to its price. The price, like that of gas, depends entirely on what people are willing to pay. And their ablility to pay is more dependant on the cost of borrowing money from the banks than anything else. Bear in mind that the exact same house in one place can fetch twice the price of one in a less fashionable district. No difference in cost.

I've rambled on a bit. Sorry. I hope you get the picture. Your energy bills are stuffing the pockets of the rich. Corruption ensures this. The media make sure we remain victims because the media is controlled by the mega-rich.

It doesn't have to be like this but it's the way we've chosen. Maybe its time to choose another way.