Skip to comments.The Inconvenient Truths About Gas Prices
Posted on 06/01/2007 8:05:41 AM PDT by george76
Few politicians can resist the urge to exploit consumer angst over gasoline prices, and thereby deflect where the blame certainly lies with them.
Here are 10 things the politicians wont tell you:
1. At over $3.00 a gallon, the U.S. inflation-adjusted price for gasoline in May 2007 is now less than it was in 1981, a remarkable decrease in price over a 25 year period during which real prices in other sectors, such as health and education have tripled and quadrupled.
2. This decline in the price of gasoline since 1981 is enjoyed almost exclusively in the U.S. In most other developed counties in the world, the price of gas is at least double what Americans pay. Consumers in the Netherlands now pay an average of $7.77 gallon, while those in Great Britain pay over $7 and consider it a bargain.
3. The gross profit margins of the major oil companies is far less than that for many other sectors, such as beverages, electrical equipment, chemicals, and computers.
4. At present gas prices, the major oil companies make a profit of between 10 cents and 12 cents a gallon...
5. At present prices, combined federal and state government profit (i.e. taxes) on each gallon of gas is 28-68 cents a gallon, depending on which state you live in. Pelosis San Francisco enjoys tacking on an extra 26 cents bite.
9. Crude oil prices, which make up 90% of the total cost of running gas refineries, are set by the international market of supply and demand, which fluctuates hourly, and not by private companies; while the major oil producing countries can form cartels (such as OPEC) which can set prices at higher than a free market, these countries are not subject to U.S. antitrust laws.
(Excerpt) Read more at blogs.rockymountainnews.com ...
Don’t confuse the economically ignorant (politicians especially) with facts.
“9. Crude oil prices, which make up 90% of the total cost of running gas refineries, are set by the international market of supply and demand, which fluctuates hourly,...”
“9. Crude oil prices, which make up 90% of the total cost of running gas refineries, are set by SPECULATORS, which fluctuates hourly,...”
Brilliant. I’ve been saying that bit about prices skyrocketing after government stepping into the profits for a while now.
Bottom line: Big Government is raking in 3-6 times the profit that the oil companies make for doing nothing but writing a tax law. I had to shut up the other day while a tin-foil hatter went on and on about how Bush and Cheney are so intertwined with oil and that Bush is personally setting the oil prices to his economic advantage. Nothing I said would change her mind.
Yes, speculators are a part of supply and demand. So what?
Liberals are blinded by their hatreds.
The tax revenues that the government receives are real. The tin-foil crowd will never see reality.
I think that many politicians know the truth but choose to pander to the lowest common denominator ( stupid voters ).
Plus government regulators demand different regulations ( varied summer mixtures, etc. ) that cause political ( not economic ) seasonal shut downs of refineries to re-tool.
This stuff also increases costs and prices.
Bookmarking for future reference
makes me all warm and fuzzy knowing that today, paying over a half a hundo for a tank of gas in inflated adjusted dollars, is better than paying 20 bucks a tank in the 80’s.
Oil Price History and Analysis
Crude oil prices behave much as any other commodity with wide price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply.
9. Crude oil prices, which make up 90% of the total cost of running gas refineries, are set by SPECULATORS, which fluctuates hourly,...
No, he got it right.
Today, gas went up by 2 cents in Georgia. A new tax increase went into effect.
I don’t pretend to know the intricacies of crude oil prices re. production or delivery costs to us.
I DO know what a friend who ran a small convenience store told me they paid for the gas they had delivered to their 2 pumps.
This was not a chain store, so it did not benefit from the lower costs for huge amounts purchased.
This store paid about 75cents a gallon for the gasoline.
It charged about $2.00 a gallon. This was pre Katrina.
Even if the price they pay is double now- $1.50 a gallon, it’s at the pump that the price is doubled!
So if the crude price is half what the supplier charges and they double the price to make a profit; then the service stations double or triple it again, who is gouging here?
Really? How many of the players in the oil futures market are actually willing and able to take delivery of the product they are bidding on?
Speculators only make oil more expensive?
“Speculators only make oil more expensive?”
No, George Soros invented the oil futures market as a way to help hard pressed consumers.
Or are you going to dance around some more?
#9 Should say the Opecker Thugs have set up an illegal cartel to make oil scarce and expensive. Their excess $’s fund their Islamofacist terrorists and terrorist countries like Iran/Syria.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.