RKMBs Forums .::Important::. Politics and Current Events Who's to blame for higher gas prices?

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britneyspearsatemyshorts said:
I hate to burst your bubble g-man but taxes dont really have alot to do with the price of gas. i live on the border of ohio/ky, and close to indiana, gas costs roughly the same withing 2 or 3 cents, ohios tax is 24 cents p gallon, ky 16, indiana 18, why are pump prices the same? not taxes. the oil companies have found the ceiling they can charge and do, if it wasnt gouging i could get gas 8 cents cheaper a gallon in ky.

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britneyspearsatemyshorts said:
the oil companies are gouging not the local guy. and ive proved taxes are almost zero factor. you take away the tax and it goes to the oil company not us. this is proven by visual fact, not your conjecture.

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Way back over a year ago, when this thread started, I posted a chart listing the various factors that contribute to the cost of a gallon of gas.



Taxes were one factor. Other factors included the cost of distribution, marketing and refining, as well as the cost of the crude oil itself.

Over the past few months taxes have remained stable. So, therefore, you are correct, insofar as taxes aren't driving the current price hikes.

However, as noted above, there is more to the cost of gasoline than taxes and profits. Therefore, the mere fact that taxes are stable doesn't mean that profits are the only reason for the rise.

Fox example, on the factors noted above was refining costs. Recently, there was a spike in refining costs, because the government mandated the refineries switch to a different mix of gas/ethanol and because a number of refineries were shut down by Katrina.

Another factor was the rise in cost of crude oil. With China using more crude, for example, there was less oil to go around. Less supply means higher costs.

Also you need to remember that much of the cost of crude oil goes to the suppliers. The suppliers are not the oil companies, but OPEC (for example). So telling, say, Exxon to lower its prices doesn't mean a thing since we can't tell OPEC to lower the price it charges Exxon.

Getting back to taxes: The reason taxes are important is that they are the one part of the price that IS set by the government and, therefore, the one part of the price the government can immediately control. The other factors are the ones noted above.

Granted, if the government cut all the taxes and the price stayed exactly the same, then you might have proof of "gouging." However, until you eliminate all the variables in any equation, not just one, any conclusion you arrive at is, at best, conjecture.

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britneyspearsatemyshorts said:
the oil companies are gouging not the local guy. and ive proved taxes are almost zero factor. you take away the tax and it goes to the oil company not us. this is proven by visual fact, not youre conjecture.

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wannabuyamonkey said:

It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

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wannabuyamonkey said:

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britneyspearsatemyshorts said:
the oil companies are gouging not the local guy. and ive proved taxes are almost zero factor. you take away the tax and it goes to the oil company not us. this is proven by visual fact, not youre conjecture.

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It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

It's also important to note that while the oil companies have seen an increase in profits to coincide with with increased demand, they haven't seen much of an increase in thier profit margins.

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r3x29yz4a said:

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wannabuyamonkey said:

It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

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this is going in my "WBAM Bible."

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wannabuyamonkey said:

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r3x29yz4a said:

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wannabuyamonkey said:

It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

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this is going in my "WBAM Bible."

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I'm glad your keeping information like this collected somewhere so you can refer to it later. It may help you understand your world better someday.

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r3x29yz4a said:

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wannabuyamonkey said:

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r3x29yz4a said:

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wannabuyamonkey said:

It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

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this is going in my "WBAM Bible."

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I'm glad your keeping information like this collected somewhere so you can refer to it later. It may help you understand your world better someday.

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My world doesn't slap its wife around, so I'm not sure what insight I'll get.

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wannabuyamonkey said:

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r3x29yz4a said:

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wannabuyamonkey said:

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r3x29yz4a said:

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wannabuyamonkey said:

It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

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this is going in my "WBAM Bible."

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I'm glad your keeping information like this collected somewhere so you can refer to it later. It may help you understand your world better someday.

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My world doesn't slap its wife around, so I'm not sure what insight I'll get.

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Hmm, I'll add that to me list of Ray "facts".

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http://www.rkmbs.com/...true#Post703702

Its "Ray facts," not Ray "facts."

Stop flip flopping

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r3x29yz4a said:

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wannabuyamonkey said:

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r3x29yz4a said:

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wannabuyamonkey said:

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r3x29yz4a said:

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wannabuyamonkey said:

It's not the local stations that earn 9 cents on the gallon, that's the oil companys profits. So if we decided to make it illegal for gas companies to earn a profit we would effectively lower gas by 9 cents. At 20 gallons a week that's 1.80 a week. Of coarse that's if we completely outlawed profit. If the oil companies made no profit, guess what? They would stop providing us with oil.

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this is going in my "WBAM Bible."

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I'm glad your keeping information like this collected somewhere so you can refer to it later. It may help you understand your world better someday.

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My world doesn't slap its wife around, so I'm not sure what insight I'll get.

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Hmm, I'll add that to me list of Ray "facts".

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http://www.rkmbs.com/...true#Post703702

Its "Ray facts," not Ray "facts."

Stop flip flopping

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the G-man said:
Maybe it should be "Ray lies"?

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r3x29yz4a said:

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the G-man said:
Maybe it should be "Ray lies"?

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uh, i posted an article you disagreed with and then blasted me for posting an editorial (ie. opinionated piece).
you then posted proof from "opinion"journal.com and then went on to start a million threads from "opinion"journal.com

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Chant said:
It's all your fault, you americans!!

I'd say it was the chinese's fault too, but it's political incorrect to pick on asians

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High pump prices are pinching the pocketbooks of seven in 10 Americans, a financial hardship that more middle- and higher-income drivers say they are beginning to feel, an AP-Ipsos poll found.

With gasoline prices topping $3 a gallon for regular unleaded in many areas, people say they are driving less, cutting short vacations and curtailing their use of heating and air conditioning.

The number of people who expect rising gas prices to cause financial problems in the months ahead has jumped from 51 percent a year ago to 70 percent now, according to AP polling. This increase has been dramatic among people who earn more than $50,000.

Analysts blame the higher prices on a tight worldwide supply, unstable politics in oil-producing countries, an inadequate number of U.S. refineries and delays in the U.S. in switching over to summer blends of fuel.

Whatever the reasons, soaring gas prices are affecting people's behavior.

Two-thirds of those surveyed said they have cut back on driving and have reduced the use of heating and air conditioning. One-half say they have trimmed vacation plans.

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Matter-eater Man said:
The current plans for immediate relief all tend to subdisise OPEC. I did see Pelosi talking about long term plans that sounded good to me....“Fourth, we recognize that only innovation and technology can lead America to energy independence. We should be spending America’s energy dollars in the Midwest, not in the Middle East."

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Hawaii's gasoline price controls have sputtered to a stop.

The island state whose drivers pay the highest pump prices in the nation has given up on price caps after an eight-month, first-in-the-nation experiment. Some complained that the restrictions actually led to higher prices

Gas is particularly expensive in Hawaii because of high state taxes and because of the costs of transporting oil across the Pacific. Last fall, Hawaii became the only state to cap the cost of fuel to try to give some relief to motorists.

One study by an economics professor showed the gas cap cost consumers 5 cents more per gallon. An analysis by the state Department of Business, Economic Development and Tourism estimated that island motorists paid $54.9 million more than they otherwise would have in the first five months under the cap.

Despite talk of an energy crisis and the need for independence from foreign oil, Congress seems to be in no mood to open more of the country's coastal waters to energy development.

The House late Thursday rejected an attempt to end the quarter-century ban on oil and natural gas drilling that has been in effect for 85 percent of the country's coastal waters from Alaska to New England despite arguments that new supplies are needed to lower energy costs.

Lawmakers from Florida and California, who led the fight to continue the drilling moratorium, said they feared energy projects as close as three miles from shore could jeopardize multibillion-dollar tourism industries in their states.

Nearly 38 million people will travel this Memorial Day weekend, and most of them will drive on America's roads and highways — a record number of travelers, according to AAA.

High gasoline prices? Not much of a problem, it seems.

"People are traveling just as much," said Philip Reed, the consumer advice editor at Edmunds.com, an automotive Web site. "There is much complaining about fuel prices, but there is still no substitute for the car and for the family vacation. That's a priority that people aren't willing to sacrifice yet."

By Labor Day, drivers will have logged more than 800 billion miles, or 8.6 billion miles a day, and will have consumed 36 billion gallons of fuel crisscrossing the United States, according to the Energy Department.

That is why Memorial Day to Labor Day accounts for the peak in gasoline consumption, why refineries have been scrambling to prepare in time and why gasoline imports have risen to near records to make up for shortfalls. Drivers seem undeterred.

The pain at the pump is easing.

Analysts expect gas prices to plummet as much as 60 cents a gallon this week, as the summer driving seasons closes following Labor Day.

"Gas rises quickly on the way up, but it goes down a lot slower," said Peter Beutel, an energy analyst at Cameron Hanover. "Motorists can expect a knockoff to happen this week."

And analysts predict that pump prices may plunge toward the $2.40-a-gallon mark by early November

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Matter-eater Man said:
I didn't blame Bush for gas prices going up this summer...

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Matter-eater Man said on May 7:
Yet the only thing I see that most of the GOP has really pushed for in all this time is drilling in the Anwar. What is the party in charge willing to act on?

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the G-man said:

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Matter-eater Man said:
I didn't blame Bush for gas prices going up this summer...

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Matter-eater Man said on May 7:
Yet the only thing I see that most of the GOP has really pushed for in all this time is drilling in the Anwar. What is the party in charge willing to act on?

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the G-man said:
To be fair, its possible that MEM is trying to say that he doesn't blame Bush for the increase specifically caused by summer travel, but does for higher prices in general.

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Killconey said:
Gas prices did indeed decrease and fall under $3.00 in the Chicagoland area. They still suck, though. $2.89 my ass!

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