Do you appreciate your government robbing you at the pumps ?

Question

Crude oil - 70 dollars US funds (rarely does it get that high but for the sake of math)

1 Barrel = 42 US gallons or 158 litres

One gallon therefore = 1.66

Go to the oil comapnies own web site 16 % for refining and 2 % for profit -

One gallon = a little less than 2 bucks US

How much are you paying ?

The rest went to tax !

This is not an American thing it is happening in Canada and the UK

Governments are killing us

We compain about the oil company (and rightfully so ) who make a billion in profits over a quarter - What do you think the government is raking in as it keeps quiet and lets you blame the whole thing on some Muslim fanatic or oil company ?

Do you appreciate this I don't

The web site I used to determine the gallons per Barel

http://www.metric-conversions.org/cgi-bin/util/convert.cgi

Answer: 1 barrels (US Oil) = 42 gallons (US Liquid)

This is what the web site provided above says a barrel is worth

Now do the math yourself -

Nick F

Acording to Petro Can's web site the cost of refining is 16 % of the base price and you must remember that this process gives you diesal and kerosine

It does not take 50 % of the Barrel but about 5% of each barrel and that yields them more profit

It isn't thrown away - in this way it is similar to taking the cream off milk - they make other stuff out of it . In the case of milk you get butter and so forth durring it's refining process - Same thing with gas -

boldtrut…

At 35 to 50 % tax per gallon ?

Sir the market has nothing to do with the price of gas at that rate of taxation

Use your head instead of parroting some lecture of supply and demand

senior c…

70 dollars US per barell includes delivery - - and it is bought long before it comes out of the ground so when prices go up it is on speculation of a shortage . The oil company has a barrel sold long before it hits the open air

Answer 1

Absolutely NOT... this is the same Govt we are suppose to trust! Yeah right!

Answer 2

Wow! No cost to deliver crude to the refiner? Bear in mind that crude oil prices are quoted FOB source, not delivered. This may be halfway around the world, or maybe just from the Alberta oil sands in Canada. That takes either the big new double-hull tanker ships (to meet environmental restrictions) or an expensive pipline system with pumping stations, mobile maintenance and security crews, etc. Think they're free? And how much do they get fined for an accidental spill, or damage caused by theft or sabotage?

No cost to deliver from the refiner to the terminal? Say the crude is received and refined on the Texas gulf coast, then barged up the Mississippi to a riverport terminal.via New Orleans and locked through a series of navigation dams. That all takes a lot of time, and "time is money" to the owner of the fuel, which must be passed on to the consumer. There are also wages, benefits and food and bedding for the towboat crew; also fuel, supplies, maintenance, lock-thru and docking fees, and repair and amortization costs for the towboat; also leasing costs and demurrage charges on the barges.

No cost for the additives which are typically provided at the terminal? That's where plain "gasoline" becomes "Shell" or "Mobil".

No cost for tank-trucking the product to the retail stations, which may be across the state? And remember that the tanker has to "dead-head" home. He can't bring gasoline back, or he wouldn't have gone there in the first place.

Maybe now it all adds up, eh?

Answer 3

You are ignorant. Read a book on supply and demand. Then you'll realize that the government does not set the price of gasoline. What advantage does the government have to do so?

The major problem is the lack of refining capacity in this country and the prevalence of "boutique" gasolines mandated by the EPA. If we had a single standard for refined gasoline and/or more refineries constructed, you would see an immediate drop in prices.

Oh, and if less people drove SUVs that get 12 mpg, that would probably help too.

Answer 4

Your numbers are a bit skewed. The federal government taxes gasoline the same for all states, 18.4 cpg. The States get their own chunk, Pennsylvania being the worst at 35.1 cpg if you buy diesel. The remainder is market driven which means that if the cost of gas is higher, that is because production costs are higher.

The oil companies cannot gouge us too much beyond the current profit percentage, as all their records are open and the public would eat them alive if they tried.

Answer 5

Actually the better question is....
Why are oil companies still bringing in huge profits?
The price of crude oil goes up even slightly, the oil co's increase their price sometimes double the increase in the price oil.
The co's are the one who are actually increasing price of crude oil, to justify the price increase in gasoline to increase their profit margin.
The Government however, just stands by and lets it happen.
I don't see how an "oil shortage" can still bring an oil company more profit than before the shortage?

Answer 6

Well, it's not the government doing it, it's the oil companies. Yes, the same oil companies that have been raking in record profits over the past couple years.

They can blame it on the Middle East or on hurricanes all they want, but it's pretty obvious where the real problem is.

Answer 7

No I don't!!! So therefore I have an idea for America, STAY HOME MEMORIAL DAY WEEKEND!!! If people stay home that weekend instead of doing EXTRA travel to go places, the oil co's will see that we don't appreciate what they're doing to us, and the gov't will see that we are tired of it all. Oil should be obsolete by now, we should be using alternatives like they have in Brazil with 100% ethanol, no oil needed! Enough is enough already, stay home just one holiday weekend of your entire life and be a part of the change!!! Spread the word to all those you know, thank you.

Answer 8

I live in a high tax state and I am not sure that all of that went to tax. Of course I hate paying any form of tax which is why I am a conservative – get the government out of my pocket.

Courage is doing what you are afraid to do. There can be no courage unless you are scared.
Eddie Rickenbacker

Answer 9

The last time I paid specific attention to it, the tax imposed on a gallon of gas was 38.4 cents. This included both State and Federal taxes. It may, of course, vary from state to state.

Answer 10

Just be glad you don't live in NY or CA, they have VERY high gas taxes. But I don't know if your math is correct. One barrel of oil doesn't equal 42 gallons of gasoline, more like 20. But you point is correct.

Answer 11

The road we drive on my be maintained somehow ( the money has to come from somewhere) The profits of oil companies like Exxon/Mobil that what frosts my cookies!!!