Who Is Gouging Whom?

There is an excellent article in the Canada Free Press by J B Williams entitled Who is Gouging Whom at the Pumps? This is a very detailed piece that breaks down the cost of a gallon of gasoline to show where every cent goes. The Democrats have hammered George Bush, Dick Cheney and the oil companies for the prices. The oil companies are evil bastards who are getting obscene profits (despite the fact those profits are lower than many other companies) and they are gouging us at the pump. The fact is the federal and state governments are gouging us in the form of taxes. The government collects tons more money in taxes for a product they had absolutely nothing to do with producing while the oil company makes a whopping 8 cents a gallon.

Who is getting rich at the gas pumps?

For starters, many average Americans hold stock in the oil companies, either directly or indirectly through their 410k or mutual fund. But the fact is, the gross profit margin for a gallon of gas in America today, is what it has always been, on average, .08 cents per gallon, (2.5% at $3.00 per gallon). Though retail gas prices fluctuate with crude prices and supply vs. demand, the gross profit margin per gallon remains roughly the same at all times. (No evidence of price gouging here.)

However, the federal government profits approximately .59 cents per gallon through gasoline taxes, 7 times or 750% that of the oil producers themselves and 20% of the price at the pumps. Pay attention here, Washington liberals are attacking oil companies for their 2.5% gross profit margin, while Washington is profiting 20% per gallon. Democrats answer? Tax some more?

If oil companies cut their profit margins by 50%, it would drop the price of a gallon of gas by only .04 cents per gallon. If Washington law makers cut their take by 50%, gasoline would cost .30 cents per gallon less. If the federal government didn’t tax gasoline at all, the price per gallon at the pumps would be $2.40 per gallon instead of $3.00 per gallon and the oil companies would still be at a respectable 2.5% gross profit margin. Who is gouging whom?

This is the true source of gouging so when you hear Boxer, Schumer, Clinton, Kennedy, Kerry, Pelosi or any other member of the Mickey Mouse club telling you how evil oil is remember that the government is ripping you off. Read the rest of the article and you will see how they are constantly lying to us and their main purpose? Put the blame on the President and the Republicans in order to regain power. I don’t want people who lack integrity in power and the donks are running at a deficit in that department.

Source: Canada Free Press

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