Thursday, March 09, 2006

True cost of Gasoline...

How much did i pay for that?....

There has been alot of talk about the amount of "Profit" the big evil oil companies have been making recently and why we should Tax them to make it fair...
Came across some information on how much we pay for gasoline and where the money actually goes as far as cost of crude, transportation, refining, and taxes...

Interesting fact, most oil companies make an average 13% profit when all is said and done. The average McDonalds makes 28%+...

The average cost of a gallon of gasoline can be broken down into 5 sections:

Crude oil: this money is what is actually paid to the suppliers of the crude oil. Most of this money goes to OPEC countries and is the reason why we should seek our own sources of crude and alternative energy sources... 43%

Taxes: There are many who say that petroleum is big business. One of the biggest "Partners" is the state & federal government... 31%

Refining Costs & Profits: This is the amount of money that the actual Big Oil Companies make but includes cost and profit... 13%

Distribution & Marketing Costs & Profits: The actual cost of transporting the crude to the refineries and then gasoline to the gas stations... 13%

Gas Stations Profits: This is the markup that is made by the individual gas station operator. This amount varies from location to location and can be little as a few cents per gallon up to over $.10 a gallon...

Historical Gas Prices(Adjusted for inflation)
Price Per Gallon
1950 $1.91
1955 $1.85
1960 $1.79
1965 $1.68
1970 $1.59
1975 $1.80
1980 $2.59
1985 $1.90
1990 $1.51
1995 $1.28
2001 $1.66
2002 $1.31
2003 $1.52
2004 $1.79
Source: U.S. DOE

Global Gas Prices per Gallon:

Amsterdam $6.48

Oslo, Norway $6.27

Milan Italy $5.96

Denmark $5.93

Belgium $5.91

Venezuela $0.12

Nigeria $0.38

Cairo Egypt $0.65

Kuwait $0.78

Saudi Arabia $0.91



Bubba said...

Many of the countries overseas use heavy taxes on gas to fund R&D on new technology and to fund their well developed mass transit systems. The tax also flexes to regulate the final consumer price of gas. It works there but here I don't know. Our political system would butcher the tax revenues for pet projects and the screaming liberal masses would cry discrimination due to those who choose to remain poor not being able to afford to fuel their cars. To achieve true reform in the sector it will require a consumer based revolution to force change. The terrorists and radical nations like IRAN are only doing us a favor by driving the price of fuel up. They are acting as the catalyst that will cause the inovation required to overcome the addiction to oil.
Recently it has been in the news how a certain off his rocker teacher compared Bush to Hitler. If you look in the context of energy there are some similarities. Hitler was cut off from oil and other energy sources and began to use what he had to power his military. Some of the Technologies being looked at right now like low rank coal liquid fuel were designed/initiated by people that had to look outside the box to come up with a viable solution.
I say bring it on! $4.00 a gallon $6.00 a gallon who cares. things like this will give the pressure and the wake-up required to override the tree huggers and self centered organizations prohibiting us from using what we have and moving forward with energy technologies.

RightsideVA said...

Outstanding cpmparison.
I would favor an increase in tax to provide more R&D but how do we be sure that is where it's going to go? You know as the price goes up the Lib's will be looking for "Relief" for the poor to ensure they get their votes next election.....

Bubba said...

The poor will be the anchor that stops the boat from moving. The only way to fix them will be to move forward with tax reform to eliminate the yearly bonus they get from everyone elses tax dollars. They live tax free year round then claim 5 kids for a BIG tax refund when they have not paid any taxes. Something like the Fair Tax (Ok evryone get out the Anti-Bortz materials) would fix part of the problem and add to the overall tax base of the country to give "free" money for R&D of new energy sources. But, that would mean no more tax manipulation and thus no more power for the politicians. Half the problem with the Federal and State govmt is that they have forgotten to how to get votes and respect through action and what they do. Instead they get votes by paying for them with tax incentives. That is why I respect George Bush. he doesn't give a rip about the so called public opinion polls and the suits on the hill. He does what must be done and knows that when the chips are down the people will back a party and person that does things. After all dead people can't claim tax deductions.

Anonymous said...

How can you say they pay no taxes? Everytime they buy something they pay tax on ciggerettes and beer. Those are taxes and they pay their fair share and in fact more then their fair share. These people work ats Walmart and get just enough to live on when the company is making Billions!!!

The rich get richer and the workers get beat down again and again

Bubba said...

You say it clear enough for me....they are buying ciggarettes and beer with what they make because we give them the other things they need, housing, food, heating assistance, ect. Being Poor is like a eats and eats and eats until there is nothing left. In this country we consider Poor as an economic condition when it is really a state or mind... Need proof? Look south to New Orleans. Where is my free housing? How do I get my assistance check? I ain't going home until they are ready to support me. There are lots of jobs there but the "poor" won't go back because they will have to work. When this country was settled they had a name for todays poor.....buzzard food!

About the rich getting richer.....
how many poor people are hiring thousands of workers and paying their wages? The rich get richer by hiring more people to make them money. That is how it works.

RightsideVA said...

Talk Radio host Neal Boortz has a neat saying for this...

"The rich keep getting richer because they keep doing the things that made them rich. Ditto for the poor. See how simple all this is"

SWAC Girl said...

I believe it was Abraham Lincoln who said, "I never got a job from a poor man."

Does Anonymous have "rich-envy" syndrome? Most companies were started by someone who put in 80-hour weeks, usually went years without a vacation, poured all the profit back into the company while living frugally themselves, waded through government red tape for hiring, safety, etc. If Anonymous is critical of "rich" companies I would suggest he start his own, walk in those shoes, and experience how the "rich" got that way.

Anonymous said, "The rich get richer and the workers get beaten down again and again." This is typical of the "poor me" attitude of too many people in this country. Try working harder and whining less.

Anonymous said...

But if they made it possible for the workers to get their share it would be different. Can you work for minimum wage? How are you gonna pay your bills and get anywhere on minimum wage? The big guys at the companies are making millions and the workers get nothing...

Bubba said...

Nothing? they get pay, training, experience, and hopwfully a work ethic. The key to moving up and bettering yourself is first to live within your means. How many of the "Workers" are eager to get off work so they can go where they live turn on one of their TV's watch a Movie on the old home theater system while they are waiting for their fresh hot pizza to be brought to their door step? The problem is not that companies pay minumum wage (and most don't if they want to find any employees, at least in my 15 years of retail management experience) the problem is that people don't know how to live within their means and move forward. It could be due to culture, the hand out/welfare philosophy or maybe they just don't get a good enough basis in economy at the state run schools. and also just what is their share? Should corporations just give out what ever proffit they make to all the employees? Maybe they should just give out 80% of what they profit? But wait then how would they have capital to expand their business and have capital to cover the rising cost of litigation and the expenses of running a business? The error in your thought process is that you truely think thay "workers" should be given things instead of earning things. Being "given" too many things is what gets most of the Poor into the situation they are in; they dont want to earn..they just want to recieve.

Rita said...

How do you expect the people who have nochoice but to work at a walmart of fast food place be able to afford it now? Here in Waynesboro there are all kinds of business starting up and making big money but paying just enough to live on. Some of us have to work 2 or 3 jobs just to feed the kids and have a little bit left over. Martins just went in and is always full and making lots of money but why not pay the workers more. Only the fatcats get richer while the workers keep working. I would want to go to college but how can I do it now? Give some profits to the workers who make it!

Bubba said...

Like you just said...

How do you expect the people who have nochoice but to work at a walmart of fast food place be able to afford it now?

....once someone comes to the conclusion that they have no other choice than to work at Wal-Mart they have slipped into the "poor state of mind" but even with working at Wal-mart they can better themselves. There are promotion capabilities in a big corporation like that that are limitless. If you have to work 2 jobs to get by then you are learning twice as much and getting twice the skills. Do people try to leverage the skills they have? NO! People in that situaton resign themselves to getting by. I worked with people in who had it calculated down to the hour how long they could work and still keep the full handout amount from the state and local welfare programs. They did not take promotions offered to them because they were content getting by in their govm't housing with their govm't paycheck.
I'm not saying everyone is like that but it is situations like that which spoil the system.

You want to go to college...GREAT! that is a big step to better yourself. BUT are you waiting for someone to give you a high enough wage that you can go? If you are you are saddly mistaken. Going to College is not a difficult task it just takes some leg work that most people have not been taught to do in the govm't schools or are to lazy to do themselves ( see mu previous bit about receiving not earning) There are Pell-Grants, schollarships, deffered interest loans, work-study programs, State grants, ect ect ect that will make it very easy to afford a good education at a college or university. All you have to do is the leg work and be prepared to focus on the learning experience when you go to school. Most of the free money programs will require a maintained GPA. Another approach to getting educated would be to look at the benifits you get while you are being an abused taken advantage of worker. Some of the big money making employee abusing companies have very little utilized TUITION REIMBURSMENT plans that let you work and go to school part-time while the company picks up the tab.
Companies give a lot of things that are more important than wages the issue is are the workers able to realize what their total compensation is. you have any idea what the margin is for a grocery store? If you think that full isles means big money then I suspect not.

SWAC Girl said...

Bubba, you hit the nail on the head and I like the way you think.

In our country it is hard to imagine anyone not being able to better themselves if they are willing to work hard ... and therein is the rub. Many folks don't want to work hard; they just "want it all" from the start. We cannot live at the level of our parents when we are just starting out.

Entry-level minimum wage jobs were intended for those who were just starting out in the work world ... usually workers who were single with no children to support. Theoretically, by the time a worker has a family he has worked his way up the ladder to better earning potential. You are the only one who can limit yourself as to what you can achieve.

I really can't top what Bubba said and tip my hat to his common-sense attitude.

Bubba said...

Me? Common sense? heck I can't even type half the time......


Anonymous said...

Interesting how this topic migrated from high gas prices to rich v. poor topic.

Anway, I agree that I high gas prices are a good think for this country. We are too complacent about this issue and will continue to be so until prices go up so much that we're actually motivated to do something about it - such moving towards biomass fuels or some other, viable alternative.

Actually, Exxon-Mobil makes less than 13% profit (as a % of revenue). They made 10.6% last year - although they did make 36 billion in profits. Even though they're the largest company in revenues, they only rank 116 in terms of profit as a % of revenue (according to Fortune).

imelda said...