Posted on 04/29/2008 10:09:21 AM PDT by MNJohnnie
We need to tax earmarks.....
And the states with the lower gasoline taxes look at the map and say, “Oh, we are lower than other states. We must IMPROVE our tax system.” Which is code for raise taxes on the citizens AGAIN, of course.
P.S. It is the same with cigarette makers. The state and federal government make FAR more profit on the sale on each pack of cigarettes than the makes yet the bad guy is the people making the least money.
Not for long!
Not if Corzine reads FR....
P.P.S. I don’t buy the 10 cents a gallon story. Many oil companies pump oil out of their own wells in international waters and pay only what it costs to extract and transfer it or on federal land and pay a fixed royalty that is far less than the current spot price. Why do you think their profits are at record levels? It isn’t because their sales were up by 50%.
They will fix that soon.
Both are correct (other than the .35c profit per gallon). Oil companies do make .10c per gallon profit on downstream, wholesale gasoline, but that is not where all their total profits come from. They also have downstream wholesale petrochemicals, such as products used to make plastics and other chemicals. They also have international downstream sales. The latter accounts for most of the total profits from most oil companies.
To put it in layman's terms, that barrel of oil an oil company buys is sold here and internationally. It is sold for fuel and it is sold for plastics production. They make a greater profit off plastics production with less expenses (less regulation on production). They make .10c per gallon off downstream fuel but they make somewhere in the equivalent range of .25c per gallon selling that oil for other uses.
our country adds even more taxes on gas.
It is because they are selling other petrochemicals at higher prices. Oil doesn't just go for fuel. It goes for plastics, chemicals, road tar, and hundreds of other uses. Check out their annual reports and you can see exactly where the revenue is coming from. A majority is international downstream (selling wholesale oil to other countries), second is non-fuel petrochemical sales, and the lowest profit margin item is oil for fuel production.
ping 28 & 30
According to the industry itself, average oil company profit margins are 8.2%. So that would be a profit of almost 29 cents a gallon, not 10.
See posts 28 & 30- oil companies make profits from other areas besides fuel production. That is what accounts for overall larger profit margins than there is profit margins on that individual product.
I read that and had to laugh. I work for an investment firm and some of the “staff assistants” go nuts about gas prices because they say... “the evil oil companies are sucking the blood out of us on gasoline just to get richer”. There is a heck of alot more to it than that.
bump for later
i was beginning to wonder where all those giant bunnies were coming from....you may be onto something....
believe me folks florida is not what it is all cracked up to be unless you love the mouse house....
At last! South Carolina ranked #47 isn’t a bad thing!
As usual, I provided you with a source while you just arrogantly, and ignorantly, make a reply with nothing at all to back it up but your own emotion based opinion. Once again your opinion is wrong but instead of bothering to learn a single thing, you mindlessly cling to your opinion in the face of the facts
Their profits are setting records because of volume. They are selling every single gallon they can produce or import. Their gross profit doesn’t change the per until profit of $.10 a gallon.
Fuel is not the only product or service the oil companies make a profit on, although it is the most visible.
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