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On the upside, I do have Exxon-Mobil shares and a TDi motor that runs around 50MPG, (Imp), so not too unhappy. Whenever we visit USA we rent the biggest SUV we can reasonably find just to celebrate how cheap your gas is..................and remind ourselves just how good small European cars really are, by comparison. Sorry, sorry, sorry, couldn't resist.
I think alot of people fail to take that into account.
I think alot of people fail to take that into account.
The federal excise tax on gasoline is only 18.4 cents per gallon. That hasn't changed since 1993. There are also state and local taxes applied but on average in the US we pay around 43 cents per gallon in fuel taxes. Compared to the rest of the world that is extremely cheap. Of course it is less in places like Iran and Venezuela.
Given that oil is within $3 of its all time high I'm somewhat amazed that gasoline isn't more expensive right now.
It turns out the 43 cents per gallon national average that I previously posted is outdated. It's now up to 46.9 cents, which is more than 10% but that's not how it's computed.
fuel taxes by state
That means out of $3.099, 15% of the cost is taxes.
It also means that I bought gas at $2.253 just before gas went up to $2.633 this afternoon. So that's a 16.9% increase in price today, exclusive of state/federal taxes.
Prices had drooped over the weekend from $2.999 to 2.75, including taxes, even though no changes had occurred on Wall Street (Markets closed), and the economic situation hadn't changed since it's a Holiday Weekend. So those price decreases didn't occur because of economists at work.
Why did the prices rise today? Is another hurricane hitting NO?
2014 Malibu 2LT, 2015 Cruze 2LT,
I think that price volatility is here to stay. Although that does seem pretty extreme. Where I live in Southern Maryland I don't remember ever seeing a one day change any greater than 15 cents.
So. MD prices are starting to creep up. After hitting a low of $2.54 a couple weeks ago they are now up to 2.63.
The government collectively enjoys the highest profit on gasoline of any group in the U.S. When Exxon-Mobil makes a $40 billion profit on its gas, the federal government makes $70 billion on the same gas.
Think about that the next time you wonder why the price of gas keeps spiraling upward, while our trusty government strictly regulates the retail prices of things like milk. No "free market" excuses for dairy farmers.
Think about it again when you wonder why our friends in Congress allow owners of 7 mpg Hummers to take $100,000 in accelerated tax depreciation on them, but allow owners of 50 mpg gas-electric hybrid cars only a $2,000 one-time tax credit.
Think about it yet again when you wonder why Congress hasn't changed the CAFE requirements in more than two decades, and currently proposes to increase them only 20% over the NEXT two decades.
Then, think about where all that tax money is really going the next time you drive over a bridge and it falls into the river.
I remember pulling up Exxon's annual report a few months back, and seeing that they payed several times more in royalties and tax, than they made in profit.
I don't think that Exxon/Mobil has increased their dividend but they have been buying back a large amount of their stock. This drives the price of the stock up and benefits the shareholder similar to having received a higher dividend. Actually I believe there are tax advantages to the shareholder for doing it this way. So if given the choice I'd rather my share price go up $1 than receive an extra $1 dividend.
That's a whole lot of hypothermia out in that snow and ice man!
2021 Kia Soul LX 6-speed stick
2021 Kia Soul LX 6-speed stick
Got a Gasoline Jones
Couldn't agree more. I think they are still riding this wave.
In terms of the article I think it is gouging, since the fuel prices go up when there's a home game, a big weekend like Labor / Memorial Day, or a holiday. But I feel most don't think it's gouging because "it always happens, it's the norm, so just roll with it" and locally we adjust by buying fuel before the price hike. Or if you're the out-of-towner you remember to get fuel before a certain point so you don't get hit with the higher prices.
In a Free market economy, "gouging" is the price paid by the consumer of a product, service, or idea when the competitive market screams to take advantage of a situation.
Shareholders demand their investments price as high as possible enabling profits, which are subsequently taxed, and that taxing is another form of "gouging".
The independent business man who works 60 to 75 hours a week and makes close to twice as much as the 40 hour a week wager, pays a whole lot more income tax and that is "gouging", for why should the entrepreneur be penalized for his ambitious work ethic? :confuse: :mad: :sick:
This is a gas price thread
On topic, I still support the magic 8 ball or dartboard determining price trends.
Owwww, we commodity dorks and traders better use our on-the-job training as power brokers and raise the price of ghastly unfairly now, while Bar-bwaa is hurting from her owee. Up the price 40 cents a gallon while we enjoy the confusion on the faces of the 150 million car drivers who must pay these obscene gas prices. Isn't this fun? We can screw the average Joe driver in to paying 4 times what he should have to pay because we're the only ghastly game in town! It's Mad magazine, dudes! Wayne's World and fun dumm dee dumb. Somebody rope some sanity in to these prices. It's the semi-truck driver's fault, huh? Too many of 'em on the road and they are charging too much to deliver our goods. Put our nation's goods back on the rails where they belong! Act now while you can still enjoy driving your cool car!
And to think, all it takes is Bar-bwaa-waaa-waaa having a dart hit her right upside her nose! What a wonderful nation we're privileged to live in, car nuts! Crack me another Coca-Cola and pop open your own box of Cheezits, it's NFL football season and the finer sport, NBA basketball is starting very soon.
2021 Kia Soul LX 6-speed stick
2014 Malibu 2LT, 2015 Cruze 2LT,
They charge retail prices for gasoline based on what they pay for it at the wholesale level.
Show me.
2014 Malibu 2LT, 2015 Cruze 2LT,
Gouging is illegal and in most states the fines are very large. None of the stations (and especially the smaller independent shops) wants to risk a few thousand dollars extra profit in light of a huge, multi-thousand dollar fine if caught.
Seems like everyone in Ohio was colluding this last month:
OMG !!! They even have INDIANAPOLIS in on the conspiracy:
See the trend?
It's because they all buy from the same regional network of wholesalers and the wholesale prices were WHAT THE RETAIL PRICES WERE BASED UPON, like they are every day of the year.
It's because they all buy from the same regional network of wholesalers and the wholesale prices were WHAT THE RETAIL PRICES WERE BASED UPON, like they are every day of the year.
*************
Yup. That's what I was talking about. The manipulation of the gas price. Notice Pittsburg is along the same pipeline along with Chicago and I'd assume St. Louis. I'm sure you have all the data about the pipelines and wholesalers so you can explain why these metro areas DON'T have the wide swings in gas price.
>you know that's not possible.
Gouging is illegal and in most states the fines are very large. None of the stations (and especially the smaller independent shops) wants to risk a few thousand dollars extra profit in light of a huge, multi-thousand dollar fine if caught. :P
>Seems like everyone in Ohio was colluding this last month:
And seems like St. Louis, Chicago, Pittsburg aren't colluding. Hehe.
2014 Malibu 2LT, 2015 Cruze 2LT,
Not pulling the"c"-card, but I still say something is rotten, because as many pointed out, the excuses, er I mean "reasoning", behind these high prices constantly change, darn near daily now. You don't know what to believe.
Well if the price of oil is the underlying factor that drives gasoline prices then you can expect to start paying more for gas. Oil prices have hit a historic high.
I'm sure this will be a point of resentment but the fact that I only use about 400 gallons of gasoline a year I'm not all that concerned about whether the price is $2/gallon or $5/gallon. However I do find the dynamics of the current market to be fascinating. It will be interesting to see what happens in the next few months.
A thousand here and a thousand there, and pretty soon you're talking about real money (link).
Please tell me this predicatable pattern is "market forces" and "economics" of supply and demand. The fuel is sitting in tanks currently along Brandt Pike and other areas. Same fuel.
As for pricing in other areas, I assume there are differences in taxes and I recall Chicago has an area gas tax of its own.
2014 Malibu 2LT, 2015 Cruze 2LT,
I try to check and keep up with the variations but it's just frustrating when the "reasoning" flies fancy free.
Yes, we have "special" taxes for everything. I'm just waiting for the Mayor Daley "move the graves from St. Johns cemetery so I can expand O'Hare airport" tax.
You could pose the same question regarding when the prices go down, it's the same fuel, how could it get cheaper? The answer is that gas stations charge based upon replacement cost, which is constantly changing.
And keep in mind, exxon owns very little of the oil it pumps out of the ground. most countries have nationalized their oil industries and simply pay exxon and other to develop the fields.
This whole situation seems to be a bit confusing as the price at the pumps seem to rise very quickly as the world situations change yet the gasoline in the ground and it's pricing is based on oil at the lower price/barrel of weeks beforehand. Just seems like the price should go up only when the more expensive oil has finally gotten to the tanks and not to be reflected in what's already in them from an earlier date and price position.
A big reason why I think eventually the U S will have to get more involved in the Middle East to keep the world economy stable and the flow of petrol coming at a steady stream. We cannot sit on the sidelines why some crazy fanatics try to sabotage the world economy. Just a personal opinion though based on nothing except gut feeling. We will have a strong, if not stronger presence in the Middle East for many years to come. The world economy depends on this U S presence!
The Sandman :mad:
2014 Malibu 2LT, 2015 Cruze 2LT,
IIRC heating oil was more per gallon than car fuel and it holds a couple hundred gallons. It does provide a nice full bodied warmth in South Dakota's cold bitter winters, though.
2021 Kia Soul LX 6-speed stick