Take a look at this study on the cause of rising gas prices:
The Foundation for Taxpayer and Consumer Rights released a new study today of rising gasoline prices in California that found corporate markups and profiteering are responsible for spring price spikes, not rising crude costs or the national switchover to higher-cost ethanol, as the oil industry claims.
I guess you can get away with that sort of thing when you’ve bought and paid for a US president and company. At least, the oil companies are getting their money’s worth.
May 5th, 2006 at 9:46 am
The companies make aprx. 10 cents profit on every gallon of gas. Taxes are much higher than that.
The demand is high and the supply is low.
The situation will not change until either:
1. Drilling is allowed in Alaska or more refineries are built (stopped by environmentalists since the 1970’s).
2. Wind power is allowed. Even Ted Kennedy was against that because it prevented his “view”.
3. The promotion of electric cars or some other alternative. The technology exists and the demand exists.
4. Mexico pays us in oil for every illegal that comes from their country who uses social services.
May 5th, 2006 at 9:50 am
Oh, total gas taxes on a gallon of gas is aprx. 50 cents.
Who is really making the profit?? big oil or big gov?
May 5th, 2006 at 10:08 am
Don’t for get global demand either. Americans tend to think that high gas prices are caused by local factors, but thats not the whole case. You can thank China right now for deciding they need more oil than the tin man on a rainy day.
May 5th, 2006 at 10:19 am
Except that here is a study that say something very different. Of course, it only looks at California, but I would expect the rest of the US is in the same boat.
From the study, “Increases in the “spot” market price of crude oil — which is the highest price a major oil company would pay for crude oil — accounted for only 12 cents per gallon. California’s percentage sales tax increased fuel prices by another four cents per gallon. More than 40 cents of the 60-cent increase in gasoline prices over 3 1/2 months is attributable to increased refinery and marketing profit margins for the oil companies;”
Taxes may be $.50 per gallon, but it’s been that way for a long time. It’s not increasing anywhere near the rate of price per gallon is increasing. And if supply were a problem, then you would see places running out of gas, and long lines. Think about how Mobile was immediately after Katrina when supply was a problem.
You can spout apologetic oil talking points all day long, but here’s a scientific study that explicitly states a completely different story.
These companies are pretty much robbing us blind, and people are defending them for doing it. It’s asinine.
May 5th, 2006 at 3:39 pm
California is a very differant situation. The state is still suffering from the artificial market damage that Enron had a hand in.
The reason Mobile ran out of gas was not the result of “normal” consumption. People were rushing out (including my aunt) filling all their vehicles, and topping off every single gas can they had…whether they needed the gas or not.
Personally, I think alternative fuels are the answer. For a number of reasons. But basically because the US is captive right now to a cartel. We should never ever be in that position, whether fuel, parts or food.
People do have some control. Not a whole lot..but some. We can consume less.
May 5th, 2006 at 3:48 pm
We have it better than most places in the industrialized world right now too. Our gas tax is super low compared to most of Europe. Tax per gallon in the Netherlands is like 4 bucks.
I think relatively high gas prices should force the innovation of jet packs and teleporters.
May 6th, 2006 at 8:46 am
The amount of tax is relevant to what you get for your money. That is important.
It would be interesting to find out how the gas taxes are spent in the US vs. other countries.
May 7th, 2006 at 8:44 pm
I read today there are now Fuel Banks. You purchase fuel at a certain price and then make withdrawls.