Breakdown of Gas Prices

none | 5/7/11 | originalbuckeye

[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.

[pioneerstakethearrows]

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!

[macquire]

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.

[ilovesarah2012]

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

[svcw]

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.

[KoRn]

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.

[Hootch]

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

[dhs12345]

http://www.dailymarkets.com/economy/2011/04/27/gasoline-taxes-vs-exxon-profit-per-gallon/

There are probably more links... google it.

[cableguymn]

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

[af_vet_rr]

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.

[ab01]

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

[C. Edmund Wright]

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.

[Young Werther]

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!

[FourtySeven]

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

[gunsequalfreedom]

sheese.

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

[VeniVidiVici]

“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.

[wbarmy]

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.

[ProtectOurFreedom]

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.

[MsLady]

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?

[Vaduz]

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