The high price of gas whos really to blame?

Question

Actaully taking in to consideration the inflation rate we paid more for gas in 1983! Not by much but dollar value yes, veggies, fruit , meat, bread and milk have risen at a higher rate than gas. However taxes in my view are a big issue, did you know the governemtn makes more revenue from the gas taxes than the oil companies? (source abc news)

Aren't companies under a enterprize system allowed to make a profit? Isnt that what their stockholders want?

So who's really to balme, what is the solution?

I am not supporting the oil comapnies, nor the price gouging stations, just offering food for thought

Answer 1

There are so many moving parts to the price of a gallon of gasoline and they all have an affect on what you pay.

You have hit on the one point that AMericans are not fessing up to, or are brainwashed into ignoring it. Taxes. When you add up the profit on a gallon of gasoline for all of the companies involved from finding it to getting it to the pump, their combined profit per gallon is less than the tax, and that is outrageous.

Why aren't people writing daily emails to the congress about this travesty? I have sent mine emails, everyone should let them know this is ridiculous.

Here are a couple links to some sound information on why prices are what they are and if there is anyone with an open mind to the issue, that is not already suffering from socialist brainwashing, they will give you a lot of knowledge, and remember people, knowledge is power.

http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html
http://www.fintrend.com/ftf/Articles/Oil_Inflation.asp
http://www.ftc.gov/opa/2005/07/gaspricefactor.htm
http://article.nationalreview.com/?q=NDEyNTUxMTEzMGMwNGEyMGM5NWIxYTA2MWI0ZGM0MmQ
http://www.api.org/aboutoilgas/facts/index.cfm

This whole fuss over prices is a way for the socialists in congress to nationalize the oil industry. What the morons do not know is these are international companies, we can certainly confiscate the land and minerals here in the US, and the socialists would like nothing more, but these companies will just move on, and China will have really cheap fuel, while we pay through the eye teeth for it, all thanks to socialism.

I scanned through the constitution again this morning and I still cannot find that God given right to cheap gas. Does anyone know where that it is?

I just read the other answers and oh my God what a mess we are in, the dumbing down of AMerica and brainwashing by the commies is complete. Oil producer profits over the last 20 years have averaged less than 5%, not much gouging going on there, I cannot believe people, the sheer ignorance. How many AMericans would be UNEMPLOYED if the socialists in congress have their way on this? Amazing

Answer 2

At what point does profit turn into gouging?

Gasoline is the bloodline that keeps America moving. Our personal vehicles alone guzzle 140 billion gallons of gasoline and diesel fuel each year, up 3.2 percent from a year ago

Crude oil - The biggest portion of the cost of gas -- as of April 2007, that's about 50 percent

Refining costs - The refining of crude oil makes up about 28 percent of the price of gasoline

Distribution and marketing - Crude oil is transported to refineries, and gasoline is shipped from the refineries to distribution points and then to gas stations. The price of transportation is passed along to the consumer. Marketing the brand of the oil company is also added into the cost of the gasoline you buy. Together, these two factors account for about 8 percent of the price of gasoline

Taxes - Taxes, including federal and local, account for about 14 percent of the total price of gas in the United States. Federal excise taxes are 18.4 cents per gallon, and state excise taxes average 18.2 cents per gallon. There may also be some additional taxes, such as applicable state sales taxes, gross receipts taxes, oil inspection fees, underground storage tank fees and other miscellaneous environmental fees. Add that to the state excise taxes, and it can average 27.4 cents. It could be worse. In Europe, gas prices are far higher than in America because taxes on gas are much higher. For example, gas prices in England have risen as high as $6.65 per gallon, with 78 percent of that going to taxes.

Station markup - some of the actual money you spend at the pump does go to the service station. Service stations add on a few cents per gallon

Answer 3

The independently owned stations are not price gouging. They are actually making less. It is the oil companies who are doing the price gouging. Look at the profits and loss statements since Bush has been in office and you will be shocked. I am not paying 3 times more for bread, milk etc than I did in the eighties. However there has been a steep increase in groceries since gas has escalated so high.

Answer 4

It's a collection of sources..OPEC, the refineries, the distributors, the individual oil companies. The bottom line is, if gas were inexpensive, we would run out in no time. It is a fact that the government needs for us to use moderation in our use in order to either find sources for oil independent of the Middle East, or alternate fuel.

Answer 5

Government plain and simple, our government has drifted so far towards communism, our Founding Fathers of our country are rolling in their graves! Tons of red tape, regulation from every illegal department of government. Government was never suppose to have this much control. Eliminate all government except defense spending and our country would be highly prosperous and our technology would sky rocket. Government keeps all competition from getting too high to keep prices up. High competition equals low prices and high quality, we see that in the computer industry: an unregulated industry by the way. Vote in the Neo-Tech party take back our country.

Answer 6

Short term relief requires; new refineries on-line, more domestic drilling, less tax at the pump.

Long term relief requires the auto makers to come out with an alternative fuel vehicle that if financially viable for the average Joe.

Answer 7

Dollar buying power was far stronger in 1986 when compared to today based on the fact that oil prices was as low as 8 dollars a barrel. What ever your point of view is, mainstream America will always blame the poor Arabs for everything. Its engrained into the social fabric of American to be racist. They always need an Enemy to keep their society together.

Moreover, it amazes me how a man of such culture and heritiage like yourself can allow yourself to be brainwashed into being a bushwipe. You have spit on the face of your ancestory.

Answer 8

I know people with oil interests. I live in an oil-rich state. They make a killing every time the price spikes, even though the reasons given are costs have gone up, etc. I don't know the answer, but I know a friend with interests bought a yacht recently. He never had one before.

Answer 9

The consumer. World wide demand is at all time highs and has been rising for decades. Wold wide supply has been relatively flat for the last couple of decades. This coupled with minimal refinery capacity increases and logistical insecurities of bringing the raw materials for processing.

Answer 10

Paul, you'll like this. I got it in an email:

Think a gallon of gas is expensive?

This makes one think, and also puts things in perspective.

Diet Snapple 16 oz $1.29 ... $10.32 per gallon
Lipton Ice Tea 16 oz $1.19 ..........$9.52 per gallon
Gatorade 20 oz $1.59 .... $10.17 per gallon
Ocean Spray 16 oz $1.25 . $10.00 per gallon
Brake Fluid 12 oz $3.15 . $33.60 per gallon
Vick's Nyquil 6 oz $8.35 ... $178.13 per gallon
Pepto Bismol 4 oz $3.85 .. $123.20 per gallon
Whiteout 7 oz $1.39 ....... $25.42 per gallon
Scope 1.5 oz $0.99 .....$84.48 per gallon

And this is the REAL KICKER...

Evian water 9 oz $1.49..........$21.19 per gallon!

$21.19 for WATER and the buyers don't even know the source.

(Evian spelled backwards is Naive.)


Ever wonder why printers are so cheap?

So they have you hooked for the ink.

Someone calculated the cost of the ink at................

you won't believe it...................

but it is true.........................

$5,200 a gal. (five thousand two hundred dollars)

So, the next time you're at the pump, be glad your car doesn't run on water, Scope, or Whiteout, Pepto Bismol, Nyquil or God forbid, Printer Ink!!!!!