Sunday, July 17, 2011
Who makes money on gas
A Newsday article notes that prices will go down 10-20 cents when the government imposed gas formulas expire for the season. Add the state/federal taxes that account for about another $.50 and the Federal printing press that is making the dollar sink and over 25% of the current price of gas is due entirely to the government. Government policy to discouraging the domestic production that could increase supply and lower the market price doesn't help much either. The price of gas is a dollar before an oil company produces a single gallon of gas, pays any of their hundreds of thousands of employees, or the small business guy who owns the station makes a nickel. The government's cut is the stable part of the price. Exxon does not make a dolooar profit on each gallon but the government does. There plenty of reasons why the price of gas is high but our government is the main one.