Pi Attitude Zone: Flexibility

Liquid Pricing

Large numbers of American car-owners have grown up believing that access to cheap gasoline was their inalienable right, as if it were guaranteed by the Constitution of the United States.

The USA long since reached the point of importing more than half its oil requirement, compared with less than a third in 1970. When the price of oil hit $100 per barrel, the sharp intake of American breath was audible around the world. How could this be allowed?  Cue calls for “energy independence”, increased domestic petrochemical production, fracking etc.

But perhaps that $100 per barrel figure would seem less exorbitant when put in context. For comparison, Coca-Cola has been calculated to cost $126 per barrel, Perrier water came in at a cool $300, Italian white wine’s ‘price-per-barrel’ was just over $2,000, and Chanel No5 perfume was very reasonable at $1.67 million per barrel.

Yet all these products enjoy healthy sales. Everything, it seems, is relative.

Zone: Flexibility Country: USA / North America Product – Consumer Products