Federal Gas Tax Profits

[Rackster]

Anyone wonder how much money we would save on gas if Congress decided to eliminate the federal gas tax, instead of harping on the oil companies profits. Oil Companies make about 9 cents to the gallon profit, the feds make 18.4 cents to the gallon. So, if Exxon/Mobile made $8.4 Billion in profits, how much did the Feds make? $16.8 Billion. What about the state tax?

Who is the the real gas gouger? I plan on doing a fair bit of scouting this year. I would spend a lot less money in gas, if they would eliminate the federal tax as well as the state tax.

 

[FamilyMan]

If they eliminated the Federal and State gas taxes the roads would go to heck in a hand basket. These sources of revenue are just about the only source for road maintenance, upgrades, plowing, building new roads, signal installation and upgrades, interstates, etc. Think of all the jobs that are tied to road construction.

Not only that, but between the demands on construction materials resulting from Katrina and the rising cost of fuel, road construction costs have escalated by about 20% per year (in this area) the last two years, which means that needed highway project are already going undone for budget reasons. Higher gas costs means less driving, which means less gas used, which means less gas tax revenue, at a time when construction costs are going up.

Mark

 

[sremim]

Nobody should complain about the oil companies. They don't dictate how much a barrel sells for. It's not their fault we don't have enough refineries. And as stated above, they make less profit than the government. They make less profit on their product than most name brands, such as Pepsi, and Mars, and just about anyone. I hate the high prices just as much as the next guy, however, when everyone blames it on the oil companies, nothing gets done.

I'm not saying you guys are the ones doing it, but everything you read in the media is blaming the oil companies.

 

[RELH]

We are all feeling the crunch due to the high price per gallon. but I agree that it can not all be layed at the door of the oil companies. Heck check the price increase the pill makers have gotten over the same time span and several other comodities that surpass the gas increase. As for taxes, be thankful that we do not pay the taxes that most European counties put on gas.
The democrats have been very big on stopping any new oil drilling here, including the Ca. coastline, but just the other day a liberal Ca. democrat is talking about submitting a new bill that will add 25 cents per gallon for road construction. I hope the people in his district vote him out of office, but it will not happen.

RELH

 

[Zigga]

If it's not the oil companies fault, then why does Bushy want an investigation done???

 

[woodruffhunter]

Zigga:

He does, so hopefully, he won't have to listen to liberals whine. I'm sure it still will not change anything.

I hate the gas prices. I am not sure how the oil companies could be at fault. Last time I checked, we live in a free market. They have the right to raise the prices as we have the right to not use gas.

 

[moneyman]

Only a total numb nutz would think that Big Oil has more control over the price of gas/crude than OPEC and the EPA.

Oil co's are not making their huge profits off of gasoline, they are making them off of crude.

I will tell you this though, the retailers of gas are making out alot better than they want you to believe. That is where the gouging is coming from.

Just look at the difference in price they are charging depending on location. Sometimes as much at 10-12 cents per gallon within a half mile, from the same parent company. The big chains pay by the 100's of thousands of gallons at a time, then they charge more per gal depending on the location of the pump.

 

[Rackster]

Maintenance of roads? I've seen our roads. I've also seen the waste of tax dollars. The Billions of dollars made from the gas tax would do more for the economy and the creation of jobs, if the consumer could keep the money in his pocket to spend or invest as he pleases (such as camp grub and hunting equipment).

I find it ironic to hear senators harping on so called big oil, and yet they do not even consider the fact that the gas tax (double the oil companies profits) puts more of a burden on the consumer than the measely 9 cents a gallon profit to the oil companies. At least the oil companies do something to earn the profit (find the oil, drill for the oil, refine the oil, transport the oil, distribute the oil........all this with heavy restrictions put on them by the government for so called environmental protection). Also as stated before, the oil companies do not have control over the price of oil, yet they are blamed for it.

 

[Califelkslayer]

I don't know about other states but Kali just reported a 1.5 Billion windfall due to high gas prices. I believe Kali has a sales tax on gas so you aren't priced on the gallon but 7.25% of the price so when you spend more, you are taxed more. This is the only way I can figure they benefit by higher prices.

Diesel was $3.09 2 days ago here. I went to town tonight and the sign said $3.19. I filled up because I figured it would be $3.29 tomorrow. When I looked at the pump, they were ONLY charging me $3.13. I guess they are raising the prices so fast, they can't reprogram the pumps fast enough. They are getting alot of practice though.

 

[Smokepole]

Rackster

You may be correct that the oil company's are making about 9 cents per gallon profit at the pump. But, that is on the marketing side of the company. The majority of their profits are from production, how much the crude sells for. Therefore, the state and federal tax on gasoline does not equate in $$ anywhere near the billions made by oil company's.

Now other comments on this post are correct that oil company's make less (when comparing earnings to every dollar of revenue), than other industries such as:
Oil and Natural Gas - 5.8
Food and beverage at - 6.7
Softeware and Services - 7.6
Health Care - 7.7
Insurance - 7.7
Real Estate - 10.8
Pharmaceuticals - 16.2
Banks - 17.3

Because some of these oil company's are so big, world wide profits are huge. The demand for crude in China is on a rocketship, the same is true in India. Because we are limited in refining capacity world wide, the bidding for crude gets higher and higher because we (everyone in the world) wants it and it pushes the price up and up and up. Tag on the instability in certain areas of the world (middle east). Finally, new cleaner gasolines and diesel will be hitting the market in many parts of the US and the construction costs to build and modify refinery units to meet the new specs is starting to be passed onto the consumer too.

Just my insight into some of the recent increase in the cost of gas right now. I know it doesn't help your's or my the pocket book though.

Smokepole

 

[muleyman]

MY QUESTION IS WHEN A GAS STATION FILLS IT HOLDING TANKS, WHICH AT MY LOCAL STATION THE TENENT TOLD ME WITH WAS ABOUT EVERY TWO WEEKS, HOW CAN A STATION JUSTIFY RAISING THE COST SO FAST WHEN YOU KNOW THEY PAID FOR TWO WEEKS WORTH OF FUEL??? DO I MAKE SENCE???

I.E. 4-20 REGUALAR $2.70 PER GALLON- STATION HAS HOLDING TANKS FILLED.
4-27 rEGUALR $2.90 PER GALLON- STATION IS STILL USING GAS FROM THE 4-20 FILLING...

MULEYMAN

 

[Smokepole]

muleyman

If your local station only gets its deliveries every two weeks, then they could be cashing in on the increase the other gas stations are paying their delivery price (was the price increased right after the 4-20 delivery? Because on 4-20 they were likely still using gas from a previous delivery).

Smokepole

 

[muleyman]

Smoke,

Yes the increase happened within 2 days of delivery. It's all a bunch of crap!

muleyman

 

[NVbkblstr]

In my state the total tax on gas is about 48 cents a gallon. Do you really think the price of gas would go down even one penny without these taxes? The oil companies wouldn't lower their prices, they would just keep selling gas at the same price and then they would be making even greater profits and we would get the benifit of having no money for roads and services. BTW don't fall for the 9 cent a gallon profit B.S.. Remember that is only the profit they report after ALL expenses. For example, Exxon is giving their chairman Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes. They also spend our money on things like $250,000 to help pay for GW's 2nd inaugural ball. Who knows how much they spend on lobbying every year. Even wasting money on a scale like this exxon had to claim a record $36 billion profit last year and the profit will probably be higher this year. Does this answer your question of who the real gouger is? The federal and state governments may waste a little money here or there but in general we get quite a bit for our gas tax money. What has exxon ever done for us?

 

[Califelkslayer]

Muley. I know you won't like this answer but they'll tell you they have to raise it because it will cost them $2.90 to refill their tanks. I know because I've asked.

I walked in one of the local stations last fall when prices were going up daily. It was shift change and the new gal asked the one going off why it was so busy. I sacastically said it was their low prices. Another guy in line told them they were 4 cents cheaper than everyone else in town. One of them immediately called the owner @ home and by the time I left town, they had raised the price 4 cents. Go figure.

 

[easymoney]

So if they are reaping such huge tax profits on gas, why are the roads so crappy in CA? I thought the 52 cents a gallon being charged was to pay for road improvements.

Stop Global Whining