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Breakdown of Gas Prices
none | 5/7/11 | originalbuckeye

Posted on 05/07/2011 8:26:00 AM PDT by originalbuckeye

Can anyone provide a current breakdown of gas prices? I want to forward to my friends who think that Big Oil is the big winner when prices spike up. I'm assuming that all the Fed, State and Local taxes are the main reason. Thanks.


TOPICS: News/Current Events; Your Opinion/Questions
KEYWORDS: gas; price

1 posted on 05/07/2011 8:26:03 AM PDT by originalbuckeye
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To: originalbuckeye

Talk about “windfall profits.” That’s what the GOVERNMENT gets with their taxes on gasoline as it goes up. They did nothing to earn it!


2 posted on 05/07/2011 8:30:21 AM PDT by pioneerstakethearrows
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To: originalbuckeye

Ever hear of Google?

google the words: breakdown of gas cost

First result of many:

http://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/gas-price1.htm

sheese.


3 posted on 05/07/2011 8:30:32 AM PDT by macquire
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To: originalbuckeye

http://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/gas-price1.htm


4 posted on 05/07/2011 8:31:04 AM PDT by ilovesarah2012
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To: originalbuckeye

Oil companies make about 7 cents per gallon, the gas station owner makes about 8 cents a gallon, states charge sales tax (CA its about 8% a gallon), the feds charge an excise tax which is fixed (I think its about 42 cents a gallon), states charge an excise tax which is fixed (CA its about 18 cents per gallon).
Probably can find a chart somewhere on the internet.


5 posted on 05/07/2011 8:35:25 AM PDT by svcw (Non forgiveness is like holding a hot coal thinking the other person will be blistered)
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To: originalbuckeye

High gas prices result from high oil prices, because oil is the primary input cost for gasoline. “Big Oil” doesn’t set the oil prices. The commodities markets do. “Big Oil” earns HUGE profits when oil prices go higher, because the market has increased the value of what they sell. States DO indeed add on taxes to the cost of gasoline as well. Some higher than others. The massive printing of ‘money’ by the Federal Reserve couldn’t be helping matters either.


6 posted on 05/07/2011 8:36:04 AM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: originalbuckeye

Someone correct me if I am wrong, but I believe most of the taxes on gas are per gallon not the dollar amount.


7 posted on 05/07/2011 8:36:44 AM PDT by Hootch (Another perspective)
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To: originalbuckeye
http://www.dailymarkets.com/economy/2011/04/27/gasoline-taxes-vs-exxon-profit-per-gallon/

There are probably more links... google it.

8 posted on 05/07/2011 8:37:18 AM PDT by dhs12345
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To: Hootch

Depends on the tax. Road tax, yes per gallon. Corporate taxes and some states sales taxes are based on the dollar amount.


9 posted on 05/07/2011 8:38:54 AM PDT by cableguymn
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To: originalbuckeye
Besides the excellent link posted above, you need to really look at the distribution and not necessarily at the big oil companies. A lot of times you'll have one company supplying many different gas stations/brands, and that does have an influence on gas prices in an area. If you have an intersection with a couple of different gas stations - a Shell, Chevron, Exxon, etc., they could all be getting their gas from the same distributor, with the only difference being additives. People want to accuse big oil of price fixing or of gas station chains of price fixing, but it's not really price fixing if all are getting the same rates from the same distributor.

If you want to keep that from happening by forcing some kind of competition into an area, you could inadvertently drive up the prices.
10 posted on 05/07/2011 8:40:35 AM PDT by af_vet_rr
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To: originalbuckeye

Perhaps he should look into the declining value of the dollar, thanks in large part to the idiotic policies of the Fed.


11 posted on 05/07/2011 8:43:43 AM PDT by ab01
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To: originalbuckeye

A lot of good information on here, and remember:

Government makes much more profit on gas than does ANY private company in the entire exploration, drilling, distribution, refinement, sales process. This includes “big oil” companies.


12 posted on 05/07/2011 8:44:13 AM PDT by C. Edmund Wright (American Thinker Columnist / Rush ghost contributor)
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To: originalbuckeye
I was attending SMU during the Pres Carter oil crisis!In my Economics class we studied the oil spikes and did a great deal of research. It took about sixty days for a barrel of oil to reach the US of A. The receiving tank farms were full and it took several weeks for the oil to be processed into end products

On the retail end the local gas station or 711 received its gasoline and diesel fuel about every 10 days on average.

Given that the price changed on a daily basisi during those 10 days it was evident that the retailers were changing the price of gas based on the reported oil speculators activity and not those EVIL oil companies.

Nothing has changed, especially the Economic Ignorance of gas purchasing public!

13 posted on 05/07/2011 8:45:28 AM PDT by Young Werther ("Quae cum ita sunt" Since these things are so!)
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To: originalbuckeye

Thanks for the question. This is a good thread to bookmark IMO.


14 posted on 05/07/2011 8:46:13 AM PDT by FourtySeven (47)
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To: macquire
sheese.

Don't be rude on here. We are amoung friends.

15 posted on 05/07/2011 8:48:12 AM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: KoRn
“Big Oil” earns HUGE profits when oil prices go higher, because the market has increased the value of what they sell.

And Big Government earns ever HUGER tax revenues by taxing these increasing profits.

16 posted on 05/07/2011 8:50:51 AM PDT by VeniVidiVici (The last Democrat worth a damn was Stalin. He purged his whole Party.)
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To: macquire

The only problem is that the article you referenced is not accurate. The pumps in AZ show the breakdown, and Federal taxes are 18 cents with state and local taxes another 18 cents.


17 posted on 05/07/2011 8:52:48 AM PDT by wbarmy (I chose to be a sheepdog once I saw what happens to the sheep.)
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To: originalbuckeye
Here's the best article I've seen on oil prices and the theory that oil companies are the culprits, bar none: About Those Oil Subsidies. Randall Hoven has done an outstanding job analyzing the situation. If you could remember just half of the case he presents here, you would shred your liberal friends to pieces.
18 posted on 05/07/2011 8:59:24 AM PDT by ProtectOurFreedom (Whoz? Meca? feble?)
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To: originalbuckeye

I just read a few days ago that for every gallon of gas, the oil companies make 7 cents and the government makes 43 cents per gallon. Disgusting, can you imagine having a business and the government making more profit off your blood sweat and tears than you do?


19 posted on 05/07/2011 9:04:18 AM PDT by MsLady (Be the kind of woman that when you get up in the morning, the devil says, "Oh crap, she's UP !!")
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To: originalbuckeye

The taxers make the most profit and the taxee gets lubed.


20 posted on 05/07/2011 9:08:03 AM PDT by Vaduz
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To: originalbuckeye
Link to taxes on gas

This is truly disgusting.

21 posted on 05/07/2011 9:08:13 AM PDT by MsLady (Be the kind of woman that when you get up in the morning, the devil says, "Oh crap, she's UP !!")
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To: pioneerstakethearrows

Not really. The government gets 18.4 cents per gallon. Therefore, regardless of the price of a gallon of gas, the feds still only get 18.4 cents per gallon.


22 posted on 05/07/2011 9:13:30 AM PDT by HawaiianGecko
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To: MsLady

No, the oil companies make 7%, so if a gallon is $4 they only make $0.28. The federal gasoline tax is 18.4 cents per gallon, hence they only get 18.4 cents regardless of the price of gas.

Now if the price of gas is $2, then the companies only make 14 cents and the Feds make 18.4 cents and that certainly isn’t fair to the oil companies that spend billions to go into hostile environments to drill for oil for the betterment of people.


23 posted on 05/07/2011 9:18:20 AM PDT by HawaiianGecko
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To: originalbuckeye; ExTexasRedhead; blackie; LucyT
Gas spending and prices by state

Snip: Gas prices keep rising nationwide. But how much you actually pay is affected by your income and local economy. Mississippi residents spend a whopping 14.2% of their income on gas.

24 posted on 05/07/2011 9:19:24 AM PDT by MamaDearest
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To: Hootch
Someone correct me if I am wrong, but I believe most of the taxes on gas are per gallon not the dollar amount.

the federal excise tax and state highway taxes are charged per gallon. here in illinois, additional state, county, and city SALES taxes are charged per dollar, including the per gallon taxes charges. so we get to pay tax on tax.

25 posted on 05/07/2011 9:20:11 AM PDT by TheRightGuy (I want MY BAILOUT ... a billion or two should do!)
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To: cableguymn

What states charge sales tax on gasoline. I’ve traveled in all 50 of them and don’t ever remember paying more inside than it says on the pump.


26 posted on 05/07/2011 9:20:53 AM PDT by HawaiianGecko
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To: macquire; All

Thanks so much. I did a search on Yahoo and the articles that came up were all old and set the Big Oil companies profit at 65% but it looks like maybe that is actually the crude profit. Thanks again.


27 posted on 05/07/2011 9:21:52 AM PDT by originalbuckeye
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To: originalbuckeye

Whoever owns the actual oil is the winner. Without going into the weeds, the tax on fuel is mostly per gallon sold. The Southland Corporation (7-11) went into the fuel business claiming they could get by on a nickel per gallon margin on retail sales. They went broke, but not before killing the retail fuel business. The refinery makes a certain amount of money. There are transportation costs. I’ve never seen an oil contract, so I don’t know if the mineral rights holder is on a sliding scale or not. They may just get a set price per barrel. Get a bunch of neighbors together and start a cooperative. Then, hire an exploration team; buy mineral rights; hire a drilling team; build pipelines; build a refinery; build more pipelines; build a wholesale fuel distribution point; buy a fleet of transport trucks; build stations; fight with the government, property owners and environmentalists about everything, and there you have it.


28 posted on 05/07/2011 9:22:04 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: originalbuckeye

Try searching Finance.Yahoo.Com for ticker symbol XOM for example. You will find that they are nearly always in the 0-10% profit range and usually around 7-8%.


29 posted on 05/07/2011 9:24:51 AM PDT by HawaiianGecko
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To: originalbuckeye; thackney

One of the big problems is the EPA mandated boutique gasolines that kick in every spring. This is described in the media as “Summer Driving Season” which is a misnomer. It’s not that people drive more in the summer (or not much). It’s that due to EPA regulations, instead of a couple of types of gasoline there are now more like 100 depending on your region. This produces artificial shortages, due to the havoc it wreaks on the refineries and the pipelines.

What would be very interesting (I’ll ping thackney to this thread) would be a multi-year graph of the spread between crude and gasoline on a month to month basis. My bet is that this spread typically enlarges in the spring and summer months due to what I’m describing. This is almost NEVER mentioned in the MSM I guess cause they don’t want you to know.


30 posted on 05/07/2011 9:27:47 AM PDT by 2 Kool 2 Be 4-Gotten (Welcome to the USA - where every day is Backwards Day!)
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To: originalbuckeye

You can’t fully analyze this over a period of just a few weeks. Gas prices go up and down. Oil prices go up and down. They don’t always do exactly what you might predict. You’ve got to look at it over a period of years. One of the reasons oil companies are making a lot of money right now is that during the 90’s, they took a bath, losing hundreds of billions of dollars, and a lot of them went out of business. The current high profit environment is the result of their competition going out of business, and it to some degree makes up for the bath they took in the 90’s. So yes, they are making a lot of money, and that is good. It means that in the long run, they can stay in business, and we can continue to have gasoline.


31 posted on 05/07/2011 9:29:48 AM PDT by Brilliant
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To: HawaiianGecko

Whether 18.4 cents or, as another poster wrote, 42 cents per gallon, it is still a windfall profit for the government compared to what the oil companies get from doing the actual R&D, drilling, and refining.


32 posted on 05/07/2011 9:32:17 AM PDT by pioneerstakethearrows
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To: HawaiianGecko

It’s been mentioned here that in IL there are sales taxes on gas.

http://illinoishomepage.net/fulltext/?nxd_id=245117

mentions there are 7 states that charge a sales tax. You likely have not noticed this because the sales tax is included in the price per gallon at the pump.


33 posted on 05/07/2011 9:33:25 AM PDT by cableguymn
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To: blueunicorn6

I’ve never seen an oil contract, so I don’t know if the mineral rights holder is on a sliding scale or not.


The contracts I’ve seen provide for the mineral rights owner to get a percent of the crude production output (1/8th, 1/6th, 1/4th, etc). The net return in dollars to the mineral rights holder would slide up/down I guess based upon what the crude market is at that time.


34 posted on 05/07/2011 9:34:53 AM PDT by deport
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To: originalbuckeye
This is something I posted in another thread a few days ago.

In 2010, Exxonmobile made just over 2 cents/gallon in profit on all fuel sales in America. The fed gov takes 18.4 cents/gallon for gas and 24.4 cents/gallon for diesel. It also taxes jet fuel. The states add to that. The average fuel tax per gallon is 48.1 cents for gasoline. More for diesel. Less for jet fuel. So, who's really screwing us?

http://www.exxonmobilperspectives.com/2011/04/27/gas-prices-and-industry-earnings-a-few-things-to-think-about/

Or there's this:

http://www.taxadmin.org/fta/rate/mf.pdf that breaks down state fuel tax rates.

Here's another site for fuel taxes by state: http://www.commonsensejunction.com/notes/gas-tax-rate.html

Here's a good pdf file that breaks down fuel taxes, other state taxes, and the combined rate of state and fed by state. http://www.easy-tax-information.com/support-files/gasoline-taxes-by-state-january-2011.pdf

Again, this is with the reminder that ExxonMobile made just over 2 cents/gallon profit on fuel last year.

35 posted on 05/07/2011 10:04:52 AM PDT by IYAS9YAS (Rose, there's a Messerschmit in the kitchen. Clean it up, will ya?)
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To: Hootch
Someone correct me if I am wrong, but I believe most of the taxes on gas are per gallon not the dollar amount.

You are not wrong. Most are. Every state charges an excise tax per gallon, that rate is a fixed rate, regardless of prices. However, 30 some-odd states also attach other fees, some may be fixed, but many are variable, based on the cost of fuel (sales/use taxes). See my post 35, last link, for that breakdown.

36 posted on 05/07/2011 10:08:45 AM PDT by IYAS9YAS (Rose, there's a Messerschmit in the kitchen. Clean it up, will ya?)
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To: originalbuckeye

You would be surprised at all of the taxes levied before it gets to where it’s going.


37 posted on 05/07/2011 10:17:14 AM PDT by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: originalbuckeye

Figures do not lie, but the people that use them do.


38 posted on 05/07/2011 10:18:05 AM PDT by org.whodat
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To: deport

Thank you.


39 posted on 05/07/2011 10:19:16 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: cableguymn
All states have sales and other tax on fuel, but it is computed different in each state. That is why trying to establish a nationwide average is horse manure. Also lots of the fuel sold is for non-highway usage, but there is no paperwork to establish the real amount.
40 posted on 05/07/2011 10:22:38 AM PDT by org.whodat
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To: Hootch

There are two types of taxes that you see at the pump. Sales tax (if your state has it) and a per gallon tax.

In California, there is 18 cents per gallon plus a 6 percent sales tax. In addition, there is an 18.4 cent federal tax.

California residents pay roughly 36.4 cents per gallon, plus another 25.5 cents per gallon sales tax (at sale price of $4.25 per gallon) for a total per gallon tax of about 62 cents per gallon.

On a typical 16 gallon fill-up costing $68.00, $9.92 is tax paid at the pump.

http://www.californiagasprices.com/Tax_Info.aspx


41 posted on 05/07/2011 10:46:27 AM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: MamaDearest

It’s all part of the 0bama/Soros plan!!


42 posted on 05/07/2011 10:48:52 AM PDT by blackie (Be Well~Be Armed~Be Safe~Molon Labe!)
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To: originalbuckeye

Whatever you do, remember this.. Oil companies are only in it for humanitarian reasons and never want more profits.

The oil/gas market is entirely a free market and is never manipulated by aramco and the producers.

If you truly believe the above you’ll go far on the FR “gas prices are only government results” mentality. You have to believe and clap your hands really hard.


43 posted on 05/07/2011 10:50:44 AM PDT by Tolsti2
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To: Young Werther

The service stations always charge what it will take to refill their tanks...the gas in their tanks may have been lower but to refill them will cost them more... thats where the up price comes from...


44 posted on 05/07/2011 10:51:16 AM PDT by goat granny
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To: goat granny
Federal tax is included in the wholesale price of gas. state and local taxes are collected by the retail outlet. when a retail price change occurrs the state and local taxing authorities reap additional revenues along with the retail outlet.

Meanwhile the wolesale price is didctated by the COGs paid at the well head. which does not change as quickly as the specualtors actions.

45 posted on 05/07/2011 11:14:08 AM PDT by Young Werther ("Quae cum ita sunt" Since these things are so!)
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To: gunsequalfreedom

Actually, in California, the state sales tax on gas is 2.25%.

The excise tax per gallon went up 17.3 cents and the sales tax went down July 1, 2010.

Per the State Board of Equalization:

3. How does the Gas Tax Swap apply to motor vehicle fuel?

Beginning July 1, 2010, the retail sale of motor vehicle fuel is partially exempt from sales and use tax. The partial exemption applies to 6 percent of the current state sales and use tax rate. Therefore, retail sales on or after July 1, 2010 are subject to sales and use tax at a rate of 2.25 percent plus applicable district taxes.

Additionally, beginning July 1, 2010, the state excise motor vehicle fuel tax goes up by 17.3 cents ($0.173) per gallon. As of July 1, 2010, the new state excise motor vehicle fuel tax rate is 35.3 cents ($0.353) per gallon.

http://boe.ca.gov/sutax/gasswapfaq.htm


46 posted on 05/07/2011 12:56:57 PM PDT by clockwise
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To: C. Edmund Wright; All
Government makes much more profit on gas than does ANY private company in the entire exploration, drilling, distribution, refinement, sales process. This includes “big oil” companies. .

Visuals are effective:

.

47 posted on 05/07/2011 2:57:50 PM PDT by Cobra64 (Common sense isn't common anymore.)
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To: clockwise

And what is the total amount of tax per gallon paid at the pump?

Also, how do you feel about congestion pricing? That will certainly had to the cost of motoring where it will be applied.


48 posted on 05/07/2011 8:19:35 PM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: 2 Kool 2 Be 4-Gotten
One of the big problems is the EPA mandated boutique gasolines that kick in every spring.

Nonsense. The EPA has just as many requirements in winter fuels as well. The difference is a lower vapor pressure requirement in the spring. (The actual nonsense is by the EPA, all year long).

My bet is that this spread typically enlarges in the spring and summer months due to what I’m describing.

I don't have a graph handy at the moment but what I've seen in the past is is not related to seasons. I have seen a trend when oil price first gets high the margin's tend to get squeezed small until the price begins to equalise. On a percentage, a small term spike in oil will not directly relate to gasoline price spike. It will go up but not as much.

See July 2008 as an example:

49 posted on 05/08/2011 5:25:04 AM PDT by thackney (life is fragile, handle with prayer (biblein90days.org))
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To: thackney

I respect your opinion and experience.

Yet, empirically, most but not all, years we see prices *do* spike up in the “summer driving season” only to go back down around labor day.

This makes sense superficially - mom and dad are loading the kids in the station wagon to go off and see the Grand Canyon or Wally World - hence demands goes up - hence prices rise.

Except in the grand scheme of things it always seemed to me that that would require a hell of a lot of station wagons loaded down with kids headed for Wally World to make a dent in the overall gasoline market.

The Wall Street Journal has often editorialized on the EPA mandated boutique fuel requirements so I put two and two together and theorized that the “Summer Driving Season” was in reality the “EPA mandated boutique fuel artificially induced shortage Gasoline Price Rise Season”. Not true in your view?

I also thought that the situation was that when you move to the lower vapor pressure requirement in the springtime that’s what translates into the number of *different* fuels required which is in essence the real problem. That in the winter time the vapor pressure requirements get relaxed which in turn translates into far fewer *different* fuels needed to meet all the EPA mandates which introduces huge economies of scale that go missing in the springtime. Not true?


50 posted on 05/08/2011 8:17:38 AM PDT by 2 Kool 2 Be 4-Gotten (Welcome to the USA - where every day is Backwards Day!)
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