Scott, if I may answer your questions. (please read I do not agree with
how this works, but it is how it works) The cost of Gasoline, as well as
many products, is not pushed by how much it cost the reseller to purchase
it but how much it will cost the reseller to purchase the replacement for
it. It is irrelevant if he bought the gas at $1.00 a gallon if he knows
the next time he refills that it will cost him $1.20 a gallon than that is
what he will charge. As for why our gas is so much cheaper than other
countries, believe it or not, it has little to do with taxation as much as
it does the fact that our government tightly controls the "mixture of
gasoline that we use. The government says that for every gallon of gas so
much will be from alaska, gulf of mexico, middle east and so on. They
control this mixture to ensure high quality grades and to control the
market. In all honesty Texas has huge amounts of oil beneath it still, why
are we not using it? Texas does not fit into the governments equation and
they actually pay people in Texas to cap off and fill in their wells. Add
this and the fact that the industrial process of refining which accounts
for the largest cost of the gas is much cheaper here than it is elsewhere
in the world.
Here is the average breakdown of a gallon of gas being sold for $1.69 - .45
for Crude, .42 Tax, .10 reseller, .72 refining.
Sorry for the Economic lesson, had to take a few too many classes in college.
Patrick
At 02:17 AM 4/11/99 -0400, Scott Hall wrote:
>
>thank god, I was beginning to think I was the only one that noticed this.
>how come every time I tun on the morning radio and hear of a newly
>announced (as in just happened today, not a few weeks ago) opec price
>hike, the prices at the pumps jump that same day or the next? does the
>crude get pumped directly to an underground refinery beneath my gas
>station in 4 hours? and why, when I hear of an opec price drop, it takes
>more than a month (or longer, if ever) to see the prices fall?
>
>and, though I'm not sure if it was on this list or not, someone said wrt
>other countries paying ~$5.00 US/gal for gas: 'so what, just because they
>tax themselves into oblivion doesn't mean we have to', let me add: AMEN.
>yes they pay more there. yes america is possibly the lowest taxed and
>greatest country to live in. but by no means does that mean that it
>couldn't and shouldn't be much, MUCH better. it's because we keep telling
>ourselves how great we have it that we're willing to overlook incremental
>tax hikes. soon, we'll be up there with european countries. then what?
>
>oops, I should stop now. my soapbox isn't rated for rants of more than 3
>minutes. and here comes than damn nurse with my meds again. back, BACK,
>I say! no! no sponge bath!
>
>scott
>
Patrick Bowen
'79 Spitfire
Jacksonville FL
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