Skip to comments.What am I paying for in the price of a gallon of gasoline?
Posted on 01/29/2012 9:11:53 AM PST by w4women
Im 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. Lets take a look, based on the U.S. Energy Information Administrations breakdown of the estimated average price of a gallon of gas in December 2011, which was $3.27.
(Excerpt) Read more at exxonmobilperspectives.com ...
You are paying for Obama’s failures/bribes/reelection funding in the Green energy sector.
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.
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
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.
Does anyone know why there’s that 9/10 after the price of gas?
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.
That used to be the old tax. Back in the day you would see 7/10. America was once an honest place.
Yeah! Wish we could get an excess government profit tax rebate at the pump!!!
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!
All retail businesses are unpaid and unreimbursed tax collectors for government!!!
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.
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.
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!
For the same reason you never see something advertised for $40. It's always $39.99.
Read my post above..there is more to it on why it is there.
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.
when-0-when will we ever learn to stop asking questions—questions are not good for anyone concerned !!!!!
Negative 7% cost for refining? OK, then direct more of your raw materials to refining and turn petroleum into a real cash machine!
Then the price goes up at the next higher 3.45 9/10 becomes 3.46 which jumps again to 3.46 9/10 and so on. But then you get into the formula estimated of cost of the # gals that make up one barrel of oil, the # of barrels, per month, per year, revenues, estimates etc in the present year.
A few years ago, I think it was 2006 or 2007, I read a report on the rise in the average annual cost of a four year college education, from 1978 to 2006/7.
I backed the dollar amount of the increase into an “inflation rate” for college tutition for the period covered by the report.
I went and found the national average retail price for gasoline, as of 1978, and applied the “inflation rate” for college tutition to it.
The result was what a gallon of gas would be costing at the pump if that cost grew as much as did college tuition from 1978 to 2006/7.
The answer was $12.93 a gallon.
Yet, due to the Liberal/Progressive/Marxist hold on the educational industrial establishment, and the political class’s partnership with it, the oil industry is evil and all we need to do about education is spend more money on it.
and when he was born our gas cost .36.9gal..thirtysix cents.9
and none of us know when or at how much it will stop...
DRILL HERE AND DRILL NOW AND GET RID OF HUSSEIN AT THE WHITE HOUSE..
"Wartime" President George W. Bush, prices ranged from a low of $1.04 to $4.05 per gallon then down to the low of 1.79 when Obama took office.[election year]
Obama $1.79 - highest USA Average so far was $3.96 [reg] but some states felt the hurt even more than "the reported average"
Does this mean gas prices will drop following the same path of other decreases before elections come around ;)
NewsBusters had a great article: Media Pump Up Obama, Despite High Gas Prices
Not to mention you still get the same amount of work out of the gas in 2007 that you did in 1978 (assuming no ethanol). Can’t quite say that about the college indoctrination centers today.
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