While oil prices have dropped from the $145 per barrel levels of just a few months ago, to less than $36.00 per barrel, Costa Rica has been very slow adjusting gas prices here to reflect that decrease. Somebody is making some serious cash, and it is NOT me.  However, prices are due to come down this week.

Today, tomorrow, or perhaps on Wednesday, after publication in La Gaceta, the price of regular will drop to ¢408 per liter, super will run ¢416 and diesel will cost ¢427 per liter.  As many of my readers are metrically challenged (as am I) the formula is One US gallon = 3.79 liters.

So doing the math ( and someone comment please if I screw this up!)!  Using 550 colones/dollar…

• Regular:  ¢408  x 3.79 liters/gallon = ¢1,546 per gallon or $2.81 per gallon.
• Super:  ¢416  x 3.79 liters/gallon = ¢1,576 per gallon or $2.87 per gallon.
• Diesel:  ¢427  x 3.79 liters/gallon = ¢1,618 per gallon or $2.94 per gallon.

This is really incredible!

These prices are just ridiculous and while about half of what they were last July, clearly do not reflect the fact that oil is trading at less than $35.00 per barrel as of today!

$35.00 reflects  a drop of 76%, yet Costa Rica has  not passed this on to Ticos.  In fact,  it has already sent notice that they are considering an increase as soon as next month. Huh?

Sadly, this seems to not be of interest to anyone, and not even the local newspapers care to ask how can this be? I am amazed that La Nacion or Channel 7 news is not asking the government why these prices are so high…. more than double the cost in the USA.  Worse, this is just another nail in the tourism coffin as tourists are now more and more sensitive to travel expenses.

I will admit to not knowing what expenses Costa Rica must incur to bring the oil to this country.  However, as most oil comes from the middle east, I doubt there is a 100% difference in cost. Further, as Venezuela is just down the road (OK OK ocean), cost to import should be less! Finally, labor costs in Costa Rica are but a fraction of those in the USA.

OK… rant over. I still consider myself a guest in this country so I do try to control my complaining, but I would sure like to build a fire under some hotshot reporter who can ask and get some answers from the government.

I received another comment yesterday and again I have decided to reply here as I think more people read the posts than the comments. OK OK… it is sort of another rant and probably should have been posted on July 4th, but here it is. It started out as a simply enough reply… then grew. However as my readers know, at times my self control fails me…which might be why I am not exactly thin!

Ohhh. Haters of the USA or those embarrassed to be an American will probably find this post not to their liking.

Below is a comment sent in yesterday and the stimulous for this reply. If my response might interest you… read on!

I don’t want to come off as a conspiracy theorist, but I do find it to be interesting that this is a problem for you now. My point, a lot of people are disenchanted, to say the least, regarding the current political, economic, etc… here in the US, and are hoping to relocate. Well maybe the powers that be prefer this not to be so easy to do. And therefore prefer not to have someone help make this possible, meaning you. You provide us with the much appreciated, and needed info. Seems as though with the recent CAFTA activity, that Costa Rica wanting to do trade with the US, is going to be pressured to do whatever Uncle Sam asks of them. Remember the disintegration of the middle class, means the corporate big wigs need all the slaves to stay here and consume in order for them to continue to make a profit. Now if we want to live elswhere, we are not here to keep them nice and fat. Ok, after previewing my post, I have to admit I do sound like a nut, or do I? (twilight zone music plays in background).

Yeah… a bit

But I think you are a little confused… at least about me and my status. My permanent residency renewal is not dictated by the US government and the renewal process seems to be going exactly as it should. I doubt there will be issues, but I thought I’d post my experiences so others could follow along to see how it goes. I expect it to go smoothly.

The USA has serious issues for sure, but to blame the current administration is just naive. The fault lies with every administration and congress for the past 20-30 years that exhibited not one modicum of leadership and a complete failure to deal with unpleasant problems like the current oil crisis, social security and numerous other issues.

The current Democratic congress does nothing… no leadership at all… preferring to blame the woes of the world on Bush.

Bush does nothing to demonstrate his leadership preferring to fall into stupid disagreements with congress about Iraq. The result is that nothing gets done on critical domestic issues. What people seem to forget is that either congress or the administration can take a leadership role and begin an initiative. Neither does and neither has for many, many years, preferring to pander to the George Soros’ of the world and to the other big campaign contributors and lobbyists. Want an example? In almost eight years neither Bush NOR congress has made even the slightest real attempt to ween the populace from being just plain pigs when it comes to using fossil fuels… nor did the administration before that nor the one before that… ad nauseum.

The US has about 4% of the world’s population yet uses 20% of the worlds oil. What is wrong with THAT picture?? Now we are at the mercy of high oil prices as China and other countries bid up the price of oil. Everyone blames big oil but they just don’t get it. Oil is a commodity… nothing more. Simple supply and demand. We now buy a ton of oil from the Saudis who then use their profits to fund terrorism and anti-American activities. Really intelligent! I like to think that every time you fill up, you are paying a nice little terrorist tax. We buy from the Saudis because we cannot seem to develop our own oil supplies or better yet, cut back on the use of oil completely. No leadership… again!

This current scenario was clearly visible decades ago, and MANY people warned that this would come to pass. EVERY administration and congress did NOTHING to keep us from being in this position… and they could have! We could have built refineries, encouraged or even forced the use of alternative fuels… Can’t be done? Pottywash! Take a look at Brazil if you want to see how it could have been done!

Now everyone bitches about the $4.00 per gallon gas prices. How silly. If you live in the Netherlands, you pay $12.00 per gallon. England? $11.00 last time I checked. Costa Rica? Over $6.00 probably starting this week! $4.00 fuel is nothing.

People have to leave the USA every day because they can no longer afford to live in their own country. My sister is in the process of moving here as she is in the same position. She gets a nice social security check and has savings, but is living hand to mouth… no room for anything unexpected and she is scared to death. Now she must leave her country.

She and many others will have no choice… but be aware it is not the rich and famous coming here. The ones with money might buy a vacation OR rental home here, but they have no intentions of moving. The ones that are moving here (not all of course) tend to be the less conspicuous consumers e.g. the middle class. I can promise you that a few tens of thousands of people planning to try ex-pat living and who are not at the top of the spending food chain, will not affect the economy of the USA one iota!

CAFTA is enormously complex and I am sure it will both help and hurt some Costa Ricans. Time will tell. In general, I think it will help more than hurt, and clearly the Costa Rica people agreed as it was they who voted YES to the TLC though admittedly not by a huge margin..

I would urge you not to fall into the trap of thinking that anything done by the USA is automatically bad. Those big (and sometimes small) businesses that everyone loves to hate is why the USA is by far and away the greatest country in the world. They were and are the engine. People forget, in the face of the all the recent anti-American press, just how wonderful IS the USA.

I believe the USA has serious issues and is broken. I believe we have wandered away from the basics that made us great. I also believe that it can be fixed, but not with the current lack of leadership in the congress and the white house. Nobody wants to rock the boat, and for sure, the boat needs some serious rocking.

The person who seems to be the forerunner in the US elections has 143 days of experience in the senate and it seems likely he will be soon be in the most important post in the world. To ME this is incredible! Talks nice though. He is, however, sadly lacking in experience and woefully ignorant of world affairs… but there you have it. The system continues.

We elect people simply not up for the job or simply not qualified. Many of those who could do the job want nothing to do with politics. Go figure! Obama will be surrounded/supported by a completely useless democratic congress that has already demonstrated that it is incapable of doing anything positive on behalf of the people they represent, and like all the congresses before, is totally lacking the leadership to make tough and unpopular decisions to save our country. They are far more interested in kowtowing to their monied supporters than in doing what is necessary to save our country.

The once honorable press distorts or fails to report the news unless it serves their own interest. They feed a never ending stream of untruths and encourage Americans to hate their own country. I mean can you IMAGINE actually working for The New York Times or CNN?? How embarrassing! How can they face their children at night?

I do not have a solution. I’d like to see people elected who care about the USA and will take strong and decisive action to lead and protect the USA. Ain’t gonna happen this election year I fear, and soon, I think the USA will soon become vulnerable once again to terrorism and attack as Obama tries cut the military and to placate an armed force whose only interest is the total destruction of the United States.

In summary, I love the USA and I am very proud if its accomplishments and forgiving of its failures.

Every once in a while I like to listen to a broadcast from back in 1973. Thirty five years have passed, but listening to and reading it still makes me want to just stand up and cheer. Thanks to our press and the naysayers, we can easily forget just how great is our country.

Thirty five years have passed, but the intelligent reader/listener will still see amazing similarities to our world today. Listen, read and think.

To read and listen to this broadcast and learn the background, click here … or you can just listen here to the The Americans

I listen to it a couple of time a year. Every time I do, it make me feel very proud to be American with all the good and bad that comes it.

For sure we are not perfect. We stumble and fall… but wow. What an honor to be called American.

Stand Proud America

The price of super gasoline would go up to ¢801 per liter and diesel prices would fall by ¢97. Gasoline today is $5.10 per gallon for super, $4.97 for regular and $4.82 for diesel. One US gallon = 3.79 liters, so after this change, a gallon of super will be ¢3,036 or $5.88. With the regular monthly increase coming in July, $6.00 per gallon gas is pretty much assured.

Currently, the cost for a gallon of diesel is $4.82, so this will drop to about $4.11. Sounds like a nice windfall for those who chose to buy dieseled vehicles right? Nope… the government giveth and the government taketh away.

To further offset the loss of tax revenue from diesel, the government plans another little surprise to those who own non commercial diesel vehicles i.e. not your personal car or SUV. Marchamo for non commercial vehicles will double. So if you are currently donating $1,000 per year in Marchamo for your reasonably late model diesel SUV, plan on taking a $1,000 hit come December. About 66,000 private cars use diesel fuel. Last year, owners of diesel cars paid about ¢8,500 million in property tax. If approved, this will double to around ¢17,000 million.

Why is this happening? The idea here is that by reducing the cost of diesel fuel, almost exclusively used by transport semis and delivery vehicles, the resultant savings in transportation costs would be passed on down to the consumer resulting in lower prices at the cash register.

Call me skeptical, but I am way to olde to believe that what amounts to a windfall profit for owners of dieseled vehicles will pass on anything. I expect it to go into their pockets and not into the pockets of consumers. As enforcement would be difficulty or impossible, I am not expecting a reduction in food or other prices real soon.

Whether this will come to pass is unclear, but at least the government is trying to be inventive and try new strategies.

The system was/is simple enough. You were restricted from entering San Jose for about 2 hours each morning rush hour and two hours during the afternoon rush based on your license plate. For me it was rarely an issue, and when it was, I just drove the circunvalación, the road that runs around San Jose and locally known as “the rotundas” because of the numerous traffic circles in that route. Sometimes I’d drive the La Uruca route. No big deal.

Well this all changed this week as the government expanded enormously the restricted areas and the hours of restriction, and yesterday, over a thousand folks learned this the hard way and got a little $10 traffic citation for their ignorance.

The restrictions are based on the last digit of the license plate (placa). 1 & 2 on Mondays, 3 & 4 on Tuesdays, 5 & 6 on Wednesdays, 7 & 8 on Thursdays; and 9 & 0 on Fridays. As my plate ends in a “2″, Monday is my day.

As I said, the problem was never a biggie until the MOPT increased enormously the restrited area and also increased the hours per day. From the relatively small area in downtone San Jose, the restriction has now been widened in all directions to include all area between the circunvalación on the south side, the Hotel Radisson in La Uruca, Calle Blancos on the north, Pavas on the west and San Pedro Mall on the east.  See map at top – click to enlarge it.

The restricted hours were also changed to from 6am to 9am in the morning and 4pm to 7pm in the evening.

The change this week was less for traffic reduction (though it was certainly noticeably less!), than for attempting to force everyone to use public transportation. Gasoline today is priced at $5.10 per gallon for super, $4.97 for regular and $4.82 for diesel, and this new restriction along with the proposed changes should have some affect on drivers. It sure has for me!

One step I think could be important would be to change what happens if there is a traffic accident. Current law (rules?) state that if you have an accident, you must not move the vehicles no matter how minor the accident.

What is worse though, is that not only must you not move the vehicle(s), you must wait until both the police and the insurance investigator arrive! ANyone who lives here can tell of backups sometimes miles long behind some minor fender-bender. Not only is this hugely annoying, it kills me to see maybe 500 to 2,000 cars all waiting in the traffic jam, engines running and burning a ton of fuel. With gas prices soon to exceed $6.00 per gallon, I am sure a few, but not all, will turn off the engines.

The government is also making noises about expanding this to all of Costa Rica.  I suppose they would have to exempt rental cars to avoid hassling the tourists.  Now that would have an effect, especially if they had anywhere near the police to enforce it!

We shall see how all this sakes out, but for now, to those of you living here in Costa Rica but not in the San Jose area, be careful when you come here to visit your friendly local embassy!  This new rules affects access to the US Embassy in Rohrmoser just east of Pavas as well as the Canadian embassy in La Sabana plus numerous others.

Holidays and weekends are not included in these restrictions.

Caution! Rant coming!

As most expats, I watch the current political battle for the Presidency of the United States. I watch as Barrack Obama and others make their stupid claims that they will “do something” about the price of gasoline in the US, now over $4.00 per gallon in 23 states. They just don’t get it. To me, it as is stupid as their claims that they will stem the outflow of jobs from the USA to other countries. I have news for them. The first will not happen without strong leadership and new ideas (which neither candidate has even remotely shown) and it is years too late the do anything about the second.

People love to blame big oil. It is so very convenient to blame those big companies rather than accept responsibility for what is the real problem. We are pigs, and this is not limited to those in the USA. The same is true here.

The USA has about only 4-5% of the world’s population yet uses 25% of the world’s oil! Oil is a commodity and nothing more. All countries use oil and therefore all countries must buy oil on the world markets. Demand affects this price as does supply. The new big kid on the block is China, a country that is now flexing its economic and manufacturing muscle and their needs are huge. Demand! They buy a LOT of oil and that is not going to stop. In fact, it will be just the opposite. The oil companies in the US, as the government of Costa Rica buy oil on the world markets and they pay whatever is needed to meet their demand. There is no real negotiation as someone else WILL pay the asking price.

So who is to blame? George Bush? YES! Bush and every single President of the United States for the past 25 years of so. Also, every member of congress, Republican or Democrat. Not ONE of these clowns has evidenced a modicum of guts and taken a leadership position to wean us off oil, and that CAN be done. Look at Brazil, a great example. Any action we start today will take years to bear fruit, so our leaders bicker, blame each other, blame the other party, blame the oil companies… whatever! Can you imagine a politician standing up and saying that he or she accepts responsibility for the lack of leadership? Many members of congress have been there for years, decades even… and they do nothing! It is time to throw the rascals out!

So what is needed and needs to be done? To answer that, we need to look at both supply and demand. To drop oil prices, either supply must go up, demand go down, or (preferably) both.

Supply

Drill new wells. Simple huh? It is not. Why? We now run afoul of the environmentalists. Everyone wants to do something about the environment. Hell, it is our earth, but oil is in places we want to protect and the oil companies cannot drill there. Much easier to drill in someone else’s country right?

The result? We become subservient to that bonehead in Iran, the Saudis, Hugo Chavez. An entire cadre of world creeps. In fact, is there one major oil producing country that even likes the USA? Between them, they exert enormous control on the USA and its economy. This can not continue. We are at peril.

So the big decision needs to be made. If we are not going to use self control and use less gasoline and oil products (reduce demand), we need to increase supply, but only from our own country (USA). That means drilling new wells in places that will give the environmentalists heart failure.

Even here in Costa Rica, that decision may need be made as there is evidence of offshore oil deposits on the Pacific coast. So far, Costa Rica has not even permitted exploration. I wonder how they will think when gasoline hits $9.00 per gallon. I cannot see how we can have it both ways.

Then there is nuclear power! Oops, here come those pesky environmentalists again. Coal? There is enough coal to produce electric power for the entire USA for 90 years! It is also VERY cheap and there have been new techniques to clean up burning coal. Not as clean as nuclear, but much better than years before. Do you think that 90 years will be long enough to find some real leaders who will wean us, forcibly if necessary, from suckling the breast of big oil? Well certainly not in this election year if McCain and Obama don’t stop stroking us with platitudes and start addressing the real issues.

Besides, silly me! The environmentalists will never permit us to use coal. Heaven forbid!

It also probably does not help that there has not been a new oil refinery built in the USA in 30 years. Why?

Demand

Everyone complains about the high gas prices but that seems to be it. Of course some folks have switched to using public transportation, riding a bike to work, etc. Do you know a lot of them? I do not. I keep in touch with people in the US and no one has really made a lot of changes. Couple of canceled drive vacations.

Here in Costa Rica, they interviewed a bunch of people and asked about the gas prices and how it is affecting them. The poorer folks already use buses as they never had a car in the first place, but the others? They are buying fewer clothes! No kidding! Rather than cut back on driving, they are using discretionary spending to buy maybe one less pair of shoes. Go figure. And Costa Rica has a huge and extensive public transportation network. Get the impression that folks are resistant to the process? Someone needs to do a similar poll or survey in the USA.

But some places in the USA, Los Angeles comes to mind, were never designed around a public transportation system. So how do they cut back? CAN they cut back? If they could, would they? People love their cars and love their freedom to hop in and get away.

Alternatives

So all this us with the alternatives. Hybrid cars are cool, but it takes about two years for the increased cost of those cars to be offset by the decrease in fuel cost. Down here it takes 3-4 years to offet the higher price.

Work from Home. Telecommute?

Alternative fuels? Brazil uses a fuel made from sugar cane I think. Far cheaper. Efficient. Clean. They are far less dependent on oil than most any other developed country. Odd then that our US congress has placed HUGE tariffs on the import of alternative fuels. Yup! Cross my heart!

I can go on, but I am tiring of my own rant. We need leadership. Someone who will maybe place a tax of 100% on any vehicle that uses less then 35 miles per gallon. Imagine a world sans SUVs, gas guzzlers, etc.

Back to Costa Rica. Today’s increase is the sixth this year with another most assuredly coming in July. Gas prices here are government controlled and prices at all gas stations are fixed.

Gasoline today is $5.10 per gallon for super, $4.97 for regular and $4.82 for diesel.

In July, you can pretty much be assured of an $.11 per gallon increase across the board.

When I arrived in Costa Rica, I bought the car that I currently own. Still runs great. To fill up cost me about 7,000 colones (about 8,000 colones in today’s valuation or $15.23).

Today, it costs 30,000 colones or $57.47.

I was gonna go out and buy a new pair of shoes for my wife’s birthday this week.

Changed my mind.