Posted on 06/01/2007 8:05:41 AM PDT by george76
Few politicians can resist the urge to exploit consumer angst over gasoline prices, and thereby deflect where the blame certainly lies — with them.
Here are 10 things the politicians won’t tell you:
1. At over $3.00 a gallon, the U.S. inflation-adjusted price for gasoline in May 2007 is now less than it was in 1981, a remarkable decrease in price over a 25 year period during which real prices in other sectors, such as health and education have tripled and quadrupled.
2. This decline in the price of gasoline since 1981 is enjoyed almost exclusively in the U.S. In most other developed counties in the world, the price of gas is at least double what Americans pay. Consumers in the Netherlands now pay an average of $7.77 gallon, while those in Great Britain pay over $7 and consider it a bargain.
3. The gross profit margins of the major oil companies is far less than that for many other sectors, such as beverages, electrical equipment, chemicals, and computers.
4. At present gas prices, the major oil companies make a profit of between 10 cents and 12 cents a gallon...
5. At present prices, combined federal and state government profit (i.e. taxes) on each gallon of gas is 28-68 cents a gallon, depending on which state you live in. Pelosi’s San Francisco enjoys tacking on an extra 26 cents bite.
9. Crude oil prices, which make up 90% of the total cost of running gas refineries, are set by the international market of supply and demand, which fluctuates hourly, and not by private companies; while the major oil producing countries can form cartels (such as OPEC) which can set prices at higher than a free market, these countries are not subject to U.S. antitrust laws.
(Excerpt) Read more at blogs.rockymountainnews.com ...
judging by the people that pass me, and i’m doing the speed limit +4 mph,
and they’re doing 10-20 mph over the limit,
gas is not high.
I suggest you reread my question.
Here is another great energy/commodity website:
In addition, if the Wahhabist Saudis (OPEC's #1 energy exporter)were not earning billions of $$$ off the Western customers, they would be unable to bankroll Sunni related terrorism around the world. Iran (opec #2 exporter) bankrolls Shia related terrorism - worldwide. Hopefully Tehran's Shi'ite terrorism exporters won't be in business much longer.
If the leading Islamic 'oil-jihad-banks' had the 'blood of Allah' removed, global Islamic related terrorism would drop considerably.
I know another fellow who ran a small convenience store who paid about a penny per gallon less than they could sell the gas for. Unless your friend can show invoices, I’m not inclined to believe that he was paying 75 cents a gallon for gasoline.
Methodology For Gasoline and Diesel Fuel Pump Components
The components for the gasoline and diesel fuel pumps are calculated in the following manner in cents per gallon and then converted into a percentage:
Crude Oil - the monthly average of the composite refiner acquisition cost, which is the average price of crude oil purchased by refiners.
Refining Costs & Profits - the difference between the monthly average of the spot price of gasoline or diesel fuel (used as a proxy for the value of gasoline or diesel fuel as it exits the refinery) and the average price of crude oil purchased by refiners (the crude oil component).
Distribution & Marketing Costs & Profits - the difference between the average retail price of gasoline or diesel fuel as computed from EIA’s weekly survey and the sum of the other 3 components.
Taxes - a monthly national average of federal and state taxes applied to gasoline or diesel fuel.
It should be noted that the second and third components can vary widely, depending on the time when the components are being calculated. Since there is typically a lag between when the spot price changes to when the retail price changes, the refining costs & profits component and the distribution & marketing costs & profits component can vary from month to month. For example, as prices increase on the spot market, often the retail prices take time to adjust. Thus, at this point in the cycle, the refining costs & profits component (assuming no corresponding increase in crude oil prices) would be relatively large while the distribution & marketing costs & profits component would be relatively small. However, later on, as retail prices “catch-up” with the previous spot price increases, the distribution & marketing costs & profits component would increase while the refining costs & profits component would decrease.
http://tonto.eia.doe.gov/oog/info/gdu/pump_methodology.html
Because the MARKET bid it up.
Now I can understand we have to import Oil but there is no reason to import the finished product!
When you sell MORE AND MORE AND MORE of your product every year, you make MORE profit. The DEMAND for the product has gone up so in addition to record breaking profit, they are making record SALES as well.
Because it shows you angst and hysteria about Gas prices is a media manufactured angst, NOT one generated by a real unfair price at the pump.
Not 13%
............. / 2004 / 2005 / 2006
Demand / 9.099 / 9.159 / 9.219 MMBPD
Imports / 0.483 / 0.584 / 0.512 MMBBPD
% of total / 5.3% / 6.4% / 5.6%
2005 was higher because of the refinery outages after Katrina.
U.S. Finished Motor Gasoline Product Supplied
http://tonto.eia.doe.gov/dnav/pet/hist/mgfupus2m.htm
U.S. Finished Motor Gasoline Imports from All Countries
http://tonto.eia.doe.gov/dnav/pet/hist/mgfimus2m.htm
“Where do they store the oil they buy?”
They don’t actually buy the commodity, they buy market futures.
http://en.wikipedia.org/wiki/Futures_contract
That is pure unadulterated nonsense. It complete Urban myth with NO base in factual reality. The profit on gas is not 250%. So either you are knowingly making this up or your "friend" simply lied to you.
Volume. Through the entire supply chain the petroleum industry keeps about 10% of sales as profit.
What does not make headlines is they are also paying record level taxes and investing record level amounts back into exploration and infrastructure.
Yes, I will take that bet. The average price per gallon will be less then $2.34 on Oct 1st 2007.
Where is the one brave politician to propose lowering those taxes? I’d like to see someone take the lead on that. Talk about a tax break that would be welcomed unanimously (outside of Washington, of course).
Then you were either vastly over paid in the 1980s or vastly under paid now.
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