All of this talk of taxing the eeeeevil oil companies for their ill gotten gain made me wonder how much money they are actually making. So I looked up the "Estimated Gasoline Price Breakdown" on the State of California's website, and was shocked!
I found out that the eeeeevil oil companies are actually GROSSING LESS money than the government is profiting!!
Here's the breakdown:
So if you add up the Oil Company potential profits, the MOST they could profit on a gallon of gas is $0.62 per gallon. Of course, they have to truck the gas to their stations, hire drivers, hire station attendants, own trucks, pay rent, etc. etc., so their profit is likely just a fraction.
The government, on the other hand, makes $0.67 per gallon, and all they have to do is collect the money.
So who is gouging Americans? The Federal, State, and Local government are killing us! About $12.00 of your gas tank is pure tax.
Think about that before you think about hating the eeeeeevil oil companies.
I found out that the eeeeevil oil companies are actually GROSSING LESS money than the government is profiting!!
Here's the breakdown:
| Branded | ||
| June 2, 2008 | ||
| Distribution Costs, Marketing Costs and Profits (Oil Co) | $0.01 | |
| Crude Oil Cost (Pure cost) | $3.04 | |
| Refinery Cost and Profits(Oil Co) | $0.51 | |
| State Underground Storage Tank Fee (Government cost) | $0.01 | |
| State and Local Sales Tax(Government) | $0.31 | |
| State Excise Tax(Government) | $0.18 | |
| Federal Excise Tax(Government) | $0.18 | |
| Retail prices(total) | $4.24 | |
So if you add up the Oil Company potential profits, the MOST they could profit on a gallon of gas is $0.62 per gallon. Of course, they have to truck the gas to their stations, hire drivers, hire station attendants, own trucks, pay rent, etc. etc., so their profit is likely just a fraction.
The government, on the other hand, makes $0.67 per gallon, and all they have to do is collect the money.
So who is gouging Americans? The Federal, State, and Local government are killing us! About $12.00 of your gas tank is pure tax.
Think about that before you think about hating the eeeeeevil oil companies.
5 Comments:
Nice post Scottie,
I'm not sure on the numbers (or if they'd be the same in Indiana) but that all sounds about right. The thing that really burns my bagel on this issue is the fact that no one can shut up about the gas, but I only know of one person who has made a true effort to drive less because of the gas prices. I still see the same people driving around in SUVs, sitting in parking lots with the car running so they can have air conditioning while they wait for their daughter at fashion bug, and driving 20 miles one way to the mall each weekend just to see if there is something they maybe want to buy. I think this issue (and the election next year) will be a big test of where the American people are at, will they decide to let go of some luxuries in order to benefit down the road or will they sit on their butts and whine at Washington to make gas cheaper regardless of the long term ramifications.
I am glad to see the Hummer being discontinued. That at least gives me some hope.
I'm actually sad to see the Hummer go, and those other types of muscle cars. I find it sad that the era of the automobile is coming to a close. We are exiting an era of wonder and entering an era of necessity. I find it rather boring.
However, Melisa and I decided to scale down on one of our cars and traded in a 15 mpg guzzler for a 30 mpg sipper. It was an economic decision for us.
Like you say, a lot of Americans complain, but do little to curb demand. The more we all conserve, the faster the price drops.
I can certainly understand the feeling of loss as another era of muscle cars comes to a close, but the hummer just isn't my idea of a sexy car. I'm not really a big fan of most newer cars that have come on the market over the last 10 years (or 20 or 30 even), although the return of the firebird was nice to see. I own an honda civic that I love. It's not too fancy (even though it is a special edition) but I like it. However, if I had to pick a gas guzzler I'd go for an old Cadillac. Nothing pimped out with rims or anything like that, just a nice clean Cadillac green cady (maybe with a little umph added to the stereo). Gotta love a car where the passenger is 5 feet away from you.
Wow, so you like the land-yachts! Nice, dude. Bling-bling.
Speaking of stereos with a little ump added, I had a little Mazda MX-3 back in the 90's, and I took out the back seat to fit in a kicker-box. It was pretty sweet.
Does this mean I'll never achieve my dream of driving a green 1966 Mustang Fastback with racing stripes?
Sigh. That car is a sexy beast.
Post a Comment
<< Home