Gas is 2.39 a gallon - It's a conspiracy ...

[JeffLeeper]

Oil would be a pretty tough thing to "fix".
Oil is traded like any other stock, when traded in "futures".
The market is guided by projected profits.
Has nothing to do with government controls, which would be impossible because of global trade.

It's not SUV's or greed as much as international investors gambling on "next-years" prices and profits.

That being said, the government doesn't have any business trying to control global prices or business practices....the best government is less government.

[f.sciarrillo]

Yeah, I understand all the futures trading and stock situations, as well as the opec dealings. The thing I don't understand is why the government has to have a 60 cent profit off of it when the owner of the gas station is only getting a one or two cent profit off of it - Even the manufacturer doesn't get a 60 cent profit.

There is a lot of speculation about why it is going down. It just seemed funny that it happen this close to election time ...

[lonewolf]

The thing I don't understand is why the government has to have a 60 cent profit off of it when the owner of the gas station is only getting a one or two cent profit off of it - Even the manufacturer doesn't get a 60 cent profit.

The federal gas tax is 18.4 cents per gallon and the PA gas tax is 31 cents per gallon--one of the highest in the country. Too bad we have to wait for snow to get a pothole filled.

[g1wgs]

Yeah, I understand all the futures trading and stock situations, as well as the opec dealings. The thing I don't understand is why the government has to have a 60 cent profit off of it when the owner of the gas station is only getting a one or two cent profit off of it - Even the manufacturer doesn't get a 60 cent profit.

Simple... Roads are expensive. Gas stations count on you buying stuff in the store. My guess is that the profit on the gasoline sales covers the additional rent and equipment maintanence so the station/convenience store breaks even. Then profit is made on the in store sales.

Even still... I hear lots of wives tales like "gas stations only make a penny per gallon. Well, like it or not, that probably doesn't mean sheetz buys gas for 2.28 and sells for 2.29. That probably means on ever gallon they sell, after expenses, they make 1 penny per gallon. But seeing as they probably sell 3,000 gallons per day (about 200 cars) per store or something.

A lot of things are like that. Say you had a product that you normally got 30-50% profit on... and had another that only got 1%. But the people won't come to your store unless you have the 1% profit item for sale. You'd sell the low buck item to sell more of the high buck one.

[songsmith]

IF you are the "GLOBAL ENERGY TRADING COMPANY" that sells and buys oil on the open market (which INCLDUES many of the names you know and love, like ExxonMobil, Royal Dutch Shell, and others) then the profits are HUGE.

Wanna know how I know that? Cause last year ExxonMobil posted the LARGEST profit of ANY CORPORATION in American history.... AND... AND!!! Royal Dutch Shell posted the largest profits of ANY EUROPEAN CORPORATION, EVER!

.

You can kvetch about taxes and such, but you can't deny the above statement. If you drive on a road maintained by the government, you should pay your share. But that's a seperate argument. Fact remains that just a few years ago, Exxon/Mobil made about 30 cents on a gallon. Just after Katrina, they were making 90 f**king cents on a gallon. Now, I sell guitars for a semi-living. Please tell me how to increase my profit 300% on a guitar without improving the guitar, or how I get it to you. Sure, we're not talking about guitars... but you get the idea.
As for politicians not being involved, I can remember Ol' Rushbo saying that the Clinton administration was secretly tied to the huge explosion of profits in the internet boom, that he maybe took money from them and gave favor in return. The current administration chock full of oilmen?...hey, it makes a guy wonder.
I have nothing against making a profit, but gas isn't worth anywhere near $3.00 a gallon, cable TV and broadband aren't worth a hundred ten bucks a month, and a disposable hospital gown isn't worth $30. Chiseling is chiseling.-------->JMS