Gasoline Pricing

[DJ]

So, who's gouging?<br /><br />-Oil company average profit is: $0.10/gallon.<br /><br />-Government TAX-Average. $0.48/gallon. <br /><br />Interesting.

 

[Haut Medoc]

Re: Gasoline Pricing

The oil companies are....JK

 

[RetNav]

Re: Gasoline Pricing

No, It is just supply and demand....

 

[eeboater]

Re: Gasoline Pricing

.10.... .48 - You're right JK, the Oil companies are gouging... they should be charging $0.05 What a ridiculous bunch of money-grubbing bast*rds...<br /><br /><br />Sean

 

[dolluper]

Re: Gasoline Pricing

I'dd say both,partner's in crime

 

[PW2]

Re: Gasoline Pricing

I guess all those roads you drive on probably were built for free.

 

[Vlad D Impeller]

Re: Gasoline Pricing

The oil companies are doing what they're supposed to do, they are in business to gain the maximum profits.<br /><br />The Govt' is another story altogether, they have the authority to raise taxes, levy new taxes, and give themselves pay raises whenever they deem it so.<br /><br />I happen to be a proponent of a flat tax.

 

[oddjob]

Re: Gasoline Pricing

Originally posted by PW2:<br /> I guess all those roads you drive on probably were built for free.

Those roads ( and the taxes to pay for them) were here long before the Clinton/AlGore Admin and congress passed the gas tax. <br /><br />Nice try....fish in a barrel, he,he

 

[grandx]

Re: Gasoline Pricing

Generally the tax per gallon of gas is a specific amount per gallon, whether State or Federal. Can read it on the pump here in TX. <br /><br />I would think the oil co's profit on gasoline is a percentage over cost instead of a flat figure per gallon. I don't know of any other business that doesn't profit by a % over cost...<br /><br />So as prices go up...<br /><br />10% (percent profit) per gallon = more profit per gallon as cost rises....<br /><br />Flat tax per gallon stays the same.<br /><br />Remember Supply and demand? As the price goes up, less is purchased... Tax revenue falls...<br /><br />Exxon on the other hand, just posted the largest quarterly profit in history for a US corporation. Last quarter... over $9 billion.<br /><br />Note, I didn't say anyone was gouging and I doubt most of the income was from gasoline sales. <br /><br />If Oil co X is producing a barrel of oil for $16/ barrel and making money 5 years ago, now that a barrel of oil is $50... well $50-$16= $34 more in your pocket with little additional cost outside inflation.<br /><br />Careful what you read.

 

[DJ]

Re: Gasoline Pricing

Exxon on the other hand, just posted the largest quarterly profit in history for a US corporation. Last quarter... over $9 billion.<br />

Yep, they produced more, thus their profits rise.<br /><br />When gas/diesel prices rose, I saw NO call for government to back off on taxes. Pick your poison. As for roads, why are "toll" roads on the rise. How much is enough????<br /><br />Looking at the results, of my troll, we're "troubled".<br /><br />We no longer "get" a business being able to make a profit. Doom awaits for those of you business starters out there-God bless you. You are now behind your neighbors "8" ball.<br /><br />I see it here on iboats. There are many that love this forum, yet berate iboats for making a profit, from it.<br /><br />Guess what. BV, can shut this forum down tomorrow. Many would scream "foul", never realizing that sales from the mega mall support the whole thing.<br /><br />Sad.

 

[jtexas]

Re: Gasoline Pricing

oddjob, FYI, Federal gasoline tax increases:<br /><br />HOOVER: 1¢ republican<br />EISENHOWER: 3¢ republican<br />REAGAN: 5¢ republican<br />BUSH: 5¢ republican<br />CLINTON: 4.3¢ democrat<br /><br />Totals:<br />REPUBLICAN TAX INCREASES: 14¢ per gallon<br />DEMOCRATIC TAX INCREASES: 4.3¢ per gallon<br /><br />Repubs tax increases are 225% more than dems.<br /><br /><br />Federal highway tax on gasoline 18.3¢ spent on interstate highways and boondoggles.<br /><br />State & local fuel taxes, mostly also for highway use; sales taxes - general funds.<br /><br />Legally, in most states, illegal price gouging is charging exorbitant prices for necessary commodities during a declared state of emergency.<br /><br />I don't believe there is currently a federal law regarding price gouging.<br /><br />Anybody remember the "Windfall Profits Tax" imposed on oil & gas producers between 1980 and 1988? Generated about $2.3 billion of tax revenue a year. And lots of billable hours for tax lawyers.

 

[DJ]

Re: Gasoline Pricing

jtexas,<br /><br />Regardless of who imposed the taxes, they're still TOO HIGH.<br /><br />You missed my point. I saw NO relief from the state, or FED, regarding relief during a time of crisis.<br /><br />Yet, we ALL forget that the reason there is a crisis is because we can't produce/formulate what we have.<br /><br />Reality is reality.

 

[JasonJ]

Re: Gasoline Pricing

You can always tell who listens to Rush...

 

[Haut Medoc]

Re: Gasoline Pricing

 

[DJ]

Re: Gasoline Pricing

Jason,<br /><br />If you are implying that I take my notes from Rush-I'm offended.<br /><br />I do not.<br /><br />Believe it or not, there are actually "thinking" people out there.<br /><br />You being a Police Officer, I think, I would expect the more open thinking from you.

 

[grandx]

Re: Gasoline Pricing

DJ,<br />Your troll is a bit deeper than I thought, so let me add.<br /><br />I think you've missed my point, last quarter Oil prices were high, they were high the quarter before as well, etc. EVERYONE except for a few OPEC countries are producing every barrel they possibly can, I would... If the price rose to $100/barrel there wouldn't be much more production as it is already at full steam ahead. Higher prices may spur more exploration, but that wouldn't come on line for some time.<br /> <br />Back to the law of supply and demand, I'll keep it USA related, although I know that doesn't strictly apply to EXXON. I doubt there was more gasoline produced last quarter as the prices were the highest in history, forcing conservation and less demand. ON top of that, the Hurricanes in the Gulf took out alot of the US refining capability, couldn't produce more gasoline if you wanted to. SO, as for gasoline profits, if there were any increases in profit due to gasoline sales, it would not be a volume thing as much as an over all increase in cost x the same volume (or less) x a profit %. <br /><br />With less demand as prices increase, tax revenue would fall as there is a flat tax per gallon. Thus less tax revenue this year than last and so forth. There was a call to reduce gasoline taxes, I saw some senator or congressman on TV one afternoon going at it, but it didn't gain much ground as revenues are not increasing with the lower demand. <br /><br />Now, I'll tell you how sad it really is. Third world countries are waking up, becoming more "westernized" and using more energy, China and India for instance, each have a population about 4 times the USA. Currently these folks use 1/10 the energy per person than we do in the US. Here's where the bulk of the demand for energy is coming from, and It ain't goin away. <br /><br />We should think conservation, and alternative energy for the long run. Most people in the world have not enjoyed the cheap energy we have and they want some of it.<br /><br />And by the way, I'm not Pro-government by any means, I suspect they can do with much less, Nor am I Pro or Anti big Business, just telling you my view of the economics behind the current energy prices and what I anticipate in the future.<br /><br />The premiss of your troll was that the government is somehow profiting out of the high gas prices, when I believe the facts show this to be the exact opposite. <br /><br />Best Regards,<br />Grandx

 

[rogerwa]

Re: Gasoline Pricing

The corporation does not have a moral duty to ensure we can afford the product. He could set the price at $4.00/gal and the supply/demand curves would shift the equillibrium points. Again, its basic business. The company exists to increase shareholder value. Which it is doing. Demand is increasing and supply is constrained (for various reasons, not just natural supply). It is no surprise that a company is able to make a good profit off of a scarce resource.<br /><br />As for the Gov't, I would like to see an accounting of the funds used for this tax. I can see where the cost of infrastructure can skyrocket due to increased wages, cost of materials, right of way/eminent domain costs, etc... But I'd be real upset if the taxes that we are supposedly paying for infrastructure is instead being funneled to an Arts program. the roads don't come for free and we are living in an increasingly crowded environment.

 

[DJ]

Re: Gasoline Pricing

grandx,<br /><br />We can pump all the oil out of the earth that we want.<br /><br />If we cannot refine it, it becomes SCARCE as we use it: gasoline-diesel.<br /><br />I'm getting tired of saying this: We haven't built a refinery, in this country, in over TWENTY YEARS-Greenies galore. They (refineries)are over taxed and are operating at 100%+ of capacity. That leads to accidents.<br /><br />You can't burn crude, in whatever you drive. The chokehold is the refining, NOT the supply.<br /><br />Realize where the the bottleneck is. Don't give me the "old and tired" "ripping me off" mentality.

 

[ZmOz]

Re: Gasoline Pricing

Originally posted by DJ:<br />You missed my point. I saw NO relief from the state, or FED, regarding relief during a time of crisis.<br />

What rock have you been sleeping under? Federal and state diesel taxes were lifted after the hurricanes, and it was legal for anyone to have red dyed diesel in their tanks.<br /><br />What did the oil companies do? Oh yeah...they jacked up the prices in a time of need. Yeah, I feel sorry for them. $9 billion. Wow. Those poor things. How do they manage to feed their children?

 

[grandx]

Re: Gasoline Pricing

I really don't know what the old tired.. ripping me off thing is??? you'll have to explain that. I'm beginning to think your getting upset with me but I'm not sure why.<br /><br />My responses are based only on the context of this thread, and I don't recall anything about refineries until JUST NOW. I agree with the US refining limitations you elude to and think we should build more as well, so we have no disagreement there. That's a bit of a twist to what we were discussing... isn't it? <br /><br />Sure, refining limitations cause price increases in the US, agreed, but so do crude prices, but that's another subject, isn't it???<br /><br />I'm not that Old, but I am getting tired.