# Why is milk more expensive than gasoline? **URL:** \ **Category:** Factual Questions\ **Created:** [June 7, 2002, 1:41am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770 "2002-06-07T01:41:16Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Eutychus](https://avatars.discourse-cdn.com/v4/letter/e/a3d4f5/32.png) [@Eutychus](https://boards.straightdope.com/u/Eutychus)\ **Post date:** [June 7, 2002, 1:41am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/1 "2002-06-07T01:41:16Z")
There seems to be comparable supplies of each and between the two, gasoline appears to me more difficult to produce. Yet per gallon, at least in America, milk is about twice as expensive. Why? ---
**Author:** ![Boyo\_Jim](https://avatars.discourse-cdn.com/v4/letter/b/87869e/32.png) [@Boyo\_Jim](https://boards.straightdope.com/u/Boyo_Jim)\ **Post date:** [June 7, 2002, 2:04am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/2 "2002-06-07T02:04:21Z")
Search for “milk price supports”. The goverment keeps millions of pounds of dairy products _off_ the maket every month to keep prices up. It’s all pretty foggy to me exactly how this is accomplished, but here is a link to some [1999](http://www.fsa.usda.gov/pas/newsroom/releases/2000/01/1408.htm) price support statistics. I think they pay farmers not to sell their product, much like other farmers are paid not to grow some other crops. Maybe 15 years ago (?) there was a huge giveaway of “goverment cheese” that was related to this program. I know dairy farmers in WI hate the system, which is based on giving farmers \*outside \*of WI subsidies to compete with “America’s Dairyland”, Wisconsin’s motto. If you imagine a series of concentric circles with a bullseye on the center, and lay that over a map of the US with central WI under the bullseye, each ring farther out receives a higher goverment dairy subsidy for their dairy products. ---
**Author:** ![pldennison](https://avatars.discourse-cdn.com/v4/letter/p/9fc29f/32.png) [@pldennison](https://boards.straightdope.com/u/pldennison)\ **Post date:** [June 7, 2002, 2:14am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/3 "2002-06-07T02:14:45Z")
There’s also more simple economic factors at work, like the fact that the average American only probably uses between 0.5 and 2 gallons of milk per week, but about 12-20 gallons of gas. (Ballpark figures off the top of my head.) If people used 15-20 gallons of milk per week, it would probably drop in price like crazy, at least until demand outstripped supply. Then it rise to a market-equalizing price below the original price. ---
**Author:** ![Guinastasia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/guinastasia/32/5751_2.png) [@Guinastasia](https://boards.straightdope.com/u/Guinastasia)\ **Post date:** [June 7, 2002, 2:20am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/4 "2002-06-07T02:20:39Z")
Maybe because people buy gas in higher volumes? Or is that just stupid? > [@](#): > > Maybe 15 years ago (?) there was a huge giveaway of “goverment cheese” that was related to this program. Yeah, but wasn’t it mostly all moldy and spoiled? (slightly off topic-I could go for a big glass of ice cold milk right now…) ---
**Author:** ![Ringo](https://avatars.discourse-cdn.com/v4/letter/r/779978/32.png) [@Ringo](https://boards.straightdope.com/u/Ringo)\ **Post date:** [June 7, 2002, 2:44am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/5 "2002-06-07T02:44:36Z")
Actually **Euty** , there are few liquids of any sort that we buy as consumers that are cheaper than gasoline. Just looking around me quickly I see a bottle of 7UP, some Palmolive dishwashing liquid, a SoftSoap dispenser, cologne, Deja Blue bottled _water_…; off the top of my head I can’t think of anything liquid that’s cheaper than gasoline. ---
**Author:** ![Ringo](https://avatars.discourse-cdn.com/v4/letter/r/779978/32.png) [@Ringo](https://boards.straightdope.com/u/Ringo)\ **Post date:** [June 7, 2002, 2:48am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/6 "2002-06-07T02:48:15Z")
My last example did make me think. My landlady pays the water bill here, so I don’t know - you’re city water might be cheaper than gasoline. But that’s about it. ---
**Author:** ![Nametag](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/nametag/32/406_2.png) [@Nametag](https://boards.straightdope.com/u/Nametag)\ **Post date:** [June 7, 2002, 3:26am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/7 "2002-06-07T03:26:38Z")
Don’t forget the fact that milk is perishable; not only does it require refrigeration (equipment, electricity), but even refrigerated, it has a limited shelf life; lots of milk gets dumped when it’s too old to sell. It’s also the starting material for lots of good things, like ice cream and cheese and butter and yogurt. These all take up some of the supply. Oh, and milk comes from cows, which have to be stuffed with feed and grain, and housed, and kept healthy, and (IIRC) kept preggers all the time. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [June 7, 2002, 3:33am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/8 "2002-06-07T03:33:39Z")
[http://www.ci.houston.tx.us/pwe/resource/ucs/rates.htm](http://www.ci.houston.tx.us/pwe/resource/ucs/rates.htm) Houston lifeline water rates ---
**Author:** ![scr4](https://avatars.discourse-cdn.com/v4/letter/s/59ef9b/32.png) [@scr4](https://boards.straightdope.com/u/scr4)\ **Post date:** [June 7, 2002, 4:01am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/9 "2002-06-07T04:01:17Z")
> [@](#): > > \*Originally posted by Ringo \* > \*\*…off the top of my head I can’t think of anything liquid that’s cheaper than gasoline. \*\* Diesel fuel? 😛 ---
**Author:** ![Motog](https://avatars.discourse-cdn.com/v4/letter/m/85e7bf/32.png) [@Motog](https://boards.straightdope.com/u/Motog)\ **Post date:** [June 7, 2002, 6:27am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/10 "2002-06-07T06:27:55Z")
Most Americans also don’t realise that you have the cheapest petrol anywhere in the developed world. Closely followed by Canada, Australia and New Zealand (I think though I might be a little out of date on that) ---
**Author:** ![GeorgeAECF](https://avatars.discourse-cdn.com/v4/letter/g/9f8e36/32.png) [@GeorgeAECF](https://boards.straightdope.com/u/GeorgeAECF)\ **Post date:** [June 7, 2002, 6:34am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/11 "2002-06-07T06:34:34Z")
Yup, this is true… we do have the cheapest gas around. Actually, I have some friends who live in the Middle East and its the same price here as there almost. Also, gas is mroe expensive in other countries by quite a bit. Even in countires where people make substantially less than we do. I’d say, what? $1 per liter on average? 3.78 liters per gallon? Our gas is very cheap. Oh, and if yu think is expesnive, go to Hawai’i. Unless you had a shoppers card yu had to pay the full retail price of $8!! Yes, you read that right, $8!! But, if you had the card, you got to pay a low-low price of $4.65 a gallon… hee hee ---
**Author:** ![Dale\_The\_Bold](https://avatars.discourse-cdn.com/v4/letter/d/41988e/32.png) [@Dale\_The\_Bold](https://boards.straightdope.com/u/Dale_The_Bold)\ **Post date:** [June 7, 2002, 7:08am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/12 "2002-06-07T07:08:48Z")
> [@](#): > > \*Originally posted by Eutychus \* > **…gasoline appears to me more difficult to produce.** I guess you’ve never been swatted with a sticky, manure-drenched tail across the face in 95 degree weather, two seconds before a swift cow-kick to the nards…which is why I grew up to pursue a job in computers. ---
**Author:** ![Aro](https://avatars.discourse-cdn.com/v4/letter/a/b3f665/32.png) [@Aro](https://boards.straightdope.com/u/Aro)\ **Post date:** [June 7, 2002, 8:02am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/13 "2002-06-07T08:02:06Z")
In the UK milk is a lot cheaper than petrol. 2 litres of milk about 80-90p 2 litres of petrol about £1.50-60 But that’s just a tax thing. Not even the government can justify high taxes on milk. Yet. ---
**Author:** ![sailor](https://avatars.discourse-cdn.com/v4/letter/s/a587f6/32.png) [@sailor](https://boards.straightdope.com/u/sailor)\ **Post date:** [June 7, 2002, 8:17am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/14 "2002-06-07T08:17:57Z")
Who buys gas in half gallon plastic bottles? ---
**Author:** ![Aro](https://avatars.discourse-cdn.com/v4/letter/a/b3f665/32.png) [@Aro](https://boards.straightdope.com/u/Aro)\ **Post date:** [June 7, 2002, 8:29am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/15 "2002-06-07T08:29:04Z")
We buy it by the litre at the pump. And its £0.82 at the moment in my area. In the Republic (of Ireland) it drops to €0.90 (£0.60). ---
**Author:** ![Mangetout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mangetout/32/19_2.png) [@Mangetout](https://boards.straightdope.com/u/Mangetout)\ **Post date:** [June 7, 2002, 9:58am UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/16 "2002-06-07T09:58:39Z")
Milk is distributed almost entirely by truck; trucks run on gasoline (or diesel) ---
**Author:** ![pldennison](https://avatars.discourse-cdn.com/v4/letter/p/9fc29f/32.png) [@pldennison](https://boards.straightdope.com/u/pldennison)\ **Post date:** [June 7, 2002, 12:14pm UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/17 "2002-06-07T12:14:24Z")
Also, milk is excludable while gasoline is not. Which is to say that only one person can drink a given glass of milk, while more than one person can use a given gallon of gasoline, assuming sharing rides and whatnot. ---
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [June 7, 2002, 12:27pm UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/18 "2002-06-07T12:27:03Z")
Just want to add that it always amazed me how cheap gas is considering it has to be pumped, stored, driven overland to a port, stored, loaded into tankers, shipped 1/2 around the world, unloaded, stored, refined, stored, trucked, stored, trucked, stored pumped into cars. And a big percentage of what you pay is tax too. Milk OTOH dont get me started. ---
**Author:** ![smiling\_bandit](https://avatars.discourse-cdn.com/v4/letter/s/e9a140/32.png) [@smiling\_bandit](https://boards.straightdope.com/u/smiling_bandit)\ **Post date:** [June 7, 2002, 12:38pm UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/19 "2002-06-07T12:38:56Z")
"Just want to add that it always amazed me how cheap gas is considering it has to be pumped, stored, driven overland to a port, stored, loaded into tankers, shipped 1/2 around the world, unloaded, stored, refined, stored, trucked, stored, trucked, stored pumped into cars. " Key is, Gasoline needs some tanks, but milk has to have sotrage areas and refining (pastuerization) _and_ to be kept cold and sold by a certain date. The big reasons gas is cheaper here than 'bout anywhere else in the West is that we have our own supplies. I’ve heard, in fact, that we actually selll most of it to Japan and the Pacific rim, as its cheaper to Move it from Alaska and Texas West to the Pacific and ship it by sea than to cart it across the US to Maine. ---
**Author:** ![RickJay](https://avatars.discourse-cdn.com/v4/letter/r/bb73d2/32.png) [@RickJay](https://boards.straightdope.com/u/RickJay)\ **Post date:** [June 7, 2002, 12:40pm UTC](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770/20 "2002-06-07T12:40:34Z")
> [@](#): > > \*Originally posted by GeorgeAECF \* > \*\*Yup, this is true… we do have the cheapest gas around. Actually, I have some friends who live in the Middle East and its the same price here as there almost. Also, gas is mroe expensive in other countries by quite a bit. Even in countires where people make substantially less than we do. > > I’d say, what? $1 per liter on average? If fuel is $1 per litre, that’s a heck of a lot more expensive than Canada, where it’s about 40-45 cents U.S. (60-70 cents CDN) a litre. [Next page](https://boards.straightdope.com/t/why-is-milk-more-expensive-than-gasoline/112770.md?page=2)