What am I paying for in the price of a gallon of gasoline?

Exxon Mobile Perspectives ^ | January 27, 2012 | Ken Cohen

[w4women]

I’m asked this question a lot. And I know a lot of drivers ask themselves this question when they pull up to the pump.

The answer is based on the economics of supply and demand and how products are manufactured and sold – along with what the government takes in taxes. Let’s take a look, based on the U.S. Energy Information Administration’s breakdown of the estimated average price of a gallon of gas in December 2011, which was $3.27.

[w4women]

Business profits rise and fall, but the government take remains.

[Red_Devil 232]

You are paying for Obama’s failures/bribes/reelection funding in the Green energy sector.

[urtax$@work]

So, EXXON makes 7cents /Gal of Gas. & US Govt makes 39cents/Gal....but their convoluted explanation of the ( “-7 “)will never be understood and EXxon will still be blamed.

tip to “big oil”, simplify your explanations - get rid of the
“-7” on your graphs.

[urtax$@work]

So, EXXON makes 7cents /Gal of Gas. & US Govt makes 39cents/Gal....but their convoluted explanation of the ( "-7 ")will never be understood and EXxon will still be blamed.

tip to "big oil", simplify your explanations - get rid of the "-7" on your graphs.

they must have hired the same PR people who explain my cell billing

[PMAS]

*

[Uncle Sham]

This article is quite deceptive in that it fails to identify the true amount of money that government steals from each gallon in taxes at every level of operation. There is no mention of the 41% corporate tax rate on the majors and there is no accounting at all for how much, in general each phase is taxed.

Why mention the tax per gallon at the pump at all if the other taxes along the way are not individually broken down? Typical propaganda from the U.S. Department of Energy. I'd bet that half the price of each gallon is government related cost, possibly more.

[Mmogamer]

Does anyone know why there’s that 9/10 after the price of gas?

[fudimo]

They could have mentioned the plight of the retailer who is basically an unpaid tax collector for the Gov.

[fight_truth_decay]

Some pumps in my state have the tax to state and federal broken down on the stamp attached. I wish they all did, to educate. Keeping the gas prices higher means more to the "state" and "federal government". However, ironically we are said to be using less because it does cost more, more gas conservative vehicles have flooded the market; so they keep the price of gas high for obvious reasons. The third listed tax posted on the sticker are automatic increases under the "the environmental tax". The states could reduce their tax, if not for the bad times facing every state. I did ask.

We cannot just resume drilling in the Gulf as the President in his Address so cheerfully offered up, for the rigs have moved out and may take months to return, if at all; just as Obama knew when he chirped the reduced numbers of illegals crossing our southern borders, but in truth the government directed officials to stopped counting those illegals turned around.

We are greatly dependent on oil from other countries, not friendly to our own which effects our national security through terrorists acts which can bring a country oil dependent as we are, to its knees financially by the twisted action of an enemy. I don't care what we have in reserves-the "fear" of what could happen would scare the market, and of course gas/oil goes up further.

The President takes the oath in fulfilling the constitutional requirement:

"I do solemnly swear (or affirm) that I will support the Constitution of the United States.

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

I guess those words can be loosely interpreted according to this sitting President.

[eyedigress]

That used to be the old tax. Back in the day you would see 7/10. America was once an honest place.

[SierraWasp]

Yeah! Wish we could get an excess government profit tax rebate at the pump!!!

[Gaffer]

Above all else, remember this. Etch it in your mind. Braze the outline of the figure. Pass it along. Gas was $1.85 per gallon on Obama’s Coronation Day. ONE DOLLAR AND EIGHTY FIVE CENTS!

[SierraWasp]

All retail businesses are unpaid and unreimbursed tax collectors for government!!!

[sportutegrl]

It is also important to look at how much it costs to buy a (ethanol free) gallon’s worth of miles if you can only purchase ethanol tainted gas.

[The Great RJ]

Not included is the increasing impact of environmental regulations. Refiners have to make numerous special blends of gasoline for different parts of the country and different times of the year solely for EPA compliance. The ethanol boondoggle also adds costs as ethanol cannot be shipped by pipeline and must be blended with gasoline as close as possible to the point of distribution.

[fight_truth_decay]

Well was going to say it just brings u in to buy the gas as you see the last number generally and looks better overall then rolled over to the next highest full number in cents--that 9/10ths of a cent than the added 1/10 over to 10/10 = 1.

Then there is said station competition across the street..

BUT will go with the experts:

What is 9/10 of a cent worth?

So the gas companies take an extra 9/10 of a cent for every gallon of gas we buy--what is that actually worth?

According to the U.S. Energy Information Administration (EIA), "prime suppliers" of "motor gasoline" reported sales of 372,833.5 thousand barrels sold in February 2007 [in this case]. Each barrel represents 42 gallons, and to determine the value of 9/10 of a cent for each gallon, we did the following calculation:

372,834 x 1000 x 42 x .009 = $140,931,063 That means that in February 2007, gas companies collected an extra $141 million USD because of their unique pricing practices. Assuming Februrary is a rough average for the year, that's $1.7 billion USD in additional revenue!

wisegeek

[MarkL]

Does anyone know why there’s that 9/10 after the price of gas?

For the same reason you never see something advertised for $40. It's always $39.99.

Mark

[fight_truth_decay]

Read my post above..there is more to it on why it is there.

[garyb]

“..;.Assuming Februrary is a rough average for the year, that's $1.7 billion USD in additional revenue!”

Oh come on! If the price didn't end in 9/10th the price would be rounded to the next higher penny (1/10th increase) not the next lower penny.

[gunnyg]

when-0-when will we ever learn to stop asking questions—questions are not good for anyone concerned !!!!!

Shhhhh !!!!!