The random political thoughts thread (Part Deux) - Page 37

scaeagles · 04-25-2006, 08:34 AM

Sigh. The government wants to launch an investigation of gas prices. I have an investigation right here. It's symbolic, I realize, and political, but stupid. Oil is a commodity and the market dictates the price. Anyway....

Oil/Gas companies make an average profit of about 7.3-8 cents per gallon. That's profit. When you stop to think of the millions (billions?) of gallons sold daily in the US, that's a lot of profit.

The taxes (which vary by state) run an average of 40 cents/gallon. 18.4 cents federal, and anywhere from 14 to 44 cents state.

So let's see...who is getting more money from a gallon of gas?

Yeah, yeah, I know....taxes go to "the public". I still find it disgusting that taxes on gas are about 5 times the profits on a gallon, yet the government who levies the taxes wants to investigate the oil companies about them making too much money.

Sigh.

€uroMeinke · 04-25-2006, 08:51 AM

But politicians need to get re-elected and the public by and large doesn't understand economics, they just want free stuff.

Stan4dSteph · 04-25-2006, 08:52 AM

FYI, you can't paint windmills to match the landscape, because then things like birds can't see them. Oops.

I actually like the simplicity of design of a wind turbine, and I don't mind having them off the coast. That beloved coast may get flooded out anyway if the oceans keep rising.

Ghoulish Delight · 04-25-2006, 09:00 AM

Quote:

Originally Posted by scaeagles

Yeah, yeah, I know....taxes go to "the public". I still find it disgusting that taxes on gas are about 5 times the profits on a gallon, yet the government who levies the taxes wants to investigate the oil companies about them making too much money.

Sigh.

All those numbers don't change the fact that price fixing is illegal.

Quote:

Oil is a commodity and the market dictates the price.

Unless it's being run as a monopoly or cartel.

Now, personally, I don't think American oil companies are doing anything illegal, based on the price of oil per barrel. According to these numbers when oil was at $37/barrel in 2004, pump prices were about $1.70/gallon. Now that we're at about double the price of oil, we're at about double the price of gasoline. Seems about right to me.

The only thing I notice that's a little fishy is that when oil prices go up, there's an instant rise at the the pump to match. But when oil prices go down, it takes a month to see a drop at the pump. But even that is just pennies here and there.

But, that being said, I welcome an investigation. If it turns up nothing, as I suspect, so be it. But collusion and price fixing are a very real possibility and blindly saying "the market dictates the price" without keeping an eye on it is a sure way to allow price fixing to run a free market into the ground.

scaeagles · 04-25-2006, 09:30 AM

Quote:

Originally Posted by Ghoulish Delight

All those numbers don't change the fact that price fixing is illegal.

Really? Price fixing is illegal?

Ghoulish Delight · 04-25-2006, 09:37 AM

Quote:

Originally Posted by scaeagles

Really? Price fixing is illegal?

If it's done by communication and agreement between different companies, yes it's illegal.

Gemini Cricket · 04-25-2006, 09:38 AM

I hug my Subway T Pass joyously.

scaeagles · 04-25-2006, 09:39 AM

Quote:

Originally Posted by Ghoulish Delight

If it's done by communication and agreement between different companies, yes it's illegal.

(psst....I think you missed my sarcasm)

innerSpaceman · 04-25-2006, 09:51 AM

Forget that the price of gas goes up as soon as oil prices do, but delays going down when the contrary happens. It's bogus in the first place. The price of producing gas is not tied in any way to the current market price of oil. True gasoline price adjustments reflecting a rise in oil prices would take nearly a year to wend through the system in place.

Raising gas prices in reaction to news of oil price increases is purely a market tactic. And if it's done in colusion with other oil companies, it's a criminal market tactic.

Yes, an investigation is called for. Too bad it's the foxes always guarding the hen house.

BarTopDancer · 04-25-2006, 09:55 AM

How does potential action in Iran in the future effect gas prices now. The oil supply is the same. Are they calling it preventitive action or what?

04-25-2006, 08:34 AM	#361
scaeagles I LIKE! Join Date: Jan 2005 Posts: 7,819	Sigh. The government wants to launch an investigation of gas prices. I have an investigation right here. It's symbolic, I realize, and political, but stupid. Oil is a commodity and the market dictates the price. Anyway.... Oil/Gas companies make an average profit of about 7.3-8 cents per gallon. That's profit. When you stop to think of the millions (billions?) of gallons sold daily in the US, that's a lot of profit. The taxes (which vary by state) run an average of 40 cents/gallon. 18.4 cents federal, and anywhere from 14 to 44 cents state. So let's see...who is getting more money from a gallon of gas? Yeah, yeah, I know....taxes go to "the public". I still find it disgusting that taxes on gas are about 5 times the profits on a gallon, yet the government who levies the taxes wants to investigate the oil companies about them making too much money. Sigh.
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04-25-2006, 08:51 AM	#362
€uroMeinke L'Hédoniste Join Date: Jan 2005 Location: A.S.C.O.T. Posts: 8,671	But politicians need to get re-elected and the public by and large doesn't understand economics, they just want free stuff. __________________ I would believe only in a God that knows how to Dance. Friedrich Nietzsche
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04-25-2006, 08:52 AM	#363
Stan4dSteph Senior Member Join Date: Jan 2005 Location: East Bay Area, CA Posts: 3,156	FYI, you can't paint windmills to match the landscape, because then things like birds can't see them. Oops. I actually like the simplicity of design of a wind turbine, and I don't mind having them off the coast. That beloved coast may get flooded out anyway if the oceans keep rising.
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04-25-2006, 09:38 AM	#367
Gemini Cricket ... Join Date: Jan 2005 Posts: 13,244	I hug my Subway T Pass joyously.
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04-25-2006, 09:51 AM	#369
innerSpaceman Kink of Swank Join Date: Jan 2005 Location: Inner Space Posts: 13,075	Forget that the price of gas goes up as soon as oil prices do, but delays going down when the contrary happens. It's bogus in the first place. The price of producing gas is not tied in any way to the current market price of oil. True gasoline price adjustments reflecting a rise in oil prices would take nearly a year to wend through the system in place. Raising gas prices in reaction to news of oil price increases is purely a market tactic. And if it's done in colusion with other oil companies, it's a criminal market tactic. Yes, an investigation is called for. Too bad it's the foxes always guarding the hen house.
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04-25-2006, 09:55 AM	#370
BarTopDancer Prepping... Join Date: Jan 2005 Location: Here, there, everywhere Posts: 11,405	How does potential action in Iran in the future effect gas prices now. The oil supply is the same. Are they calling it preventitive action or what? __________________ Spork is the new MacGyver Postcards From My Edge
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