Viper31

All the wining going on about the cost of gasoline has prompted me to attempt to research the actual cost. I thought that other folks would also like to know this info. It seems as most people you run into on a daily basis are clueless on the costs and just repeat what they hear in the media. For simplicity I will use Department of Energy statistics and per gallon costing. I will use $3.00 a gallon pricing as that is the average in my area this week.

Crude oil cost (47%) = 1.41
Distribution cost (12%) = 0.36
Refining and Profit (18%) = 0.54
Taxes U.S. Average (23%) = 0.69

Taxes in my state are only $0.42 cents per gallon, but current crude oil pricing should make the per gallon cost $1.71 versus $1.41 so the average per gallon cost is actually $0.03 lower using the percentages above.

I do not know how efficient the refining and distribution operations are, but lets just assume they are efficient and are making 50% profit from those operations (12% + 18% = 30% - 15% = 15% profit). I would say that many companies would not consider 15% profit all that great.

Please chime in you have more accurate data so we all can learn about this stuff.

Iggy

While I have no idea how much it costs to refine a gallon of crude, I do know it can't be as much as we think judging by the record multi-billion dollar profits they're posting.

kswest

They are a corporation, it is their job to make money and maximize value for the share holder by selling you something you want and need.

Instead of complaining about the oil company's 9 cents a gallon they are making call you senator and ask why there are 50 cents plus in taxes on each gallon. Or go buy some XOM shares. They are up about $6.25 since 1/1/06. $10,000 invested on the new year would be worth $11,112.69 today.

I'm guessing anyone on this forum could care less about a couple extra dollars at the pump. Are you really changing your lifestyle at all b/c of the extra cost of gas?

Seriously, the oil companies are in business to make money and make the people who own the oil company's money. A share is $60 and there isn't a soul on this site that can't afford at least one. Instead of blindly being pissed at the oil companies b/c of their "record setting" profits look at how much of your money the govt. takes.

kswest

This one is even better ... lets say you're single and making $70,351 - $146,750. You want to buy a gallon of gas ...

Your income tax rate is 28%, the social security rate is 6.2% and the medicare rate is 1.45%. Federal gas tax is 18.4 cents a gallon and state gas tax (FL) is 14.5 cents a gallon. This won't include the local taxes added to each gallon of gas.

You go to your job and make your $3.00 to buy one gallon of gas. Here is the govt. take:

INCOME TAX: $0.84
SOCIAL SEC: $0.19
MEDICARE : $0.05

FED TAX: $0.184
STA TAX: $0.145

TOTAL: $$$ 2.26 !!!!


Once you make your 3 dollars to buy gas and pay your 3 dollars to buy gas you've paid $2.26 in TAX!!! So you really have to make about $ 5.18 to buy a true $ 3.00 in gas.

GOODT

lets see xom is posting record profits at everyones expence, my rates are the same as they where in 2001 and people still complain (mostly cruiser customers because I wont work on blow boats ) gas prices have tripled since then so should I raise my rates ?????(performance boaters dont complain there main concern is it being done right the first time so no complaints there) the dealer I used to work for is charging 20.00 more per hour then I do and same tech same work

kswest

Honestly, who are the hurting? Their profit margin is about 7%, that isn't crazy. The huge profits are because of our huge demand for oil. If we all started driving diesels or hybrids that got 50 miles to to gallon instead of cars that got 25 then XOM sales would be cut in half and their profit would be hurt too. Instead we are using more and more gas with no end in sight.

Not that I want to pay more for gas, but they could be charging even MORE. a 7% profit isn't crazy ... a lot of company's are at 20% +

satisfactionII

A real good way to present this. If this doesn't pizz people off. nothing will.

dhlaw

Stop drinking the Kool Aid........ demand has not increased, they have reduced production to 85% capacity not due to Katrina but because they can act with impunity. What the hell do you think Dick Cheney locked himself in that room with the oil company execs for and emerged with an "energy policy" that has allowed this to happen (The meeting he still refuses to disclose the substance of). China and India are not the causes either because they are a fraction of the daily usage as us and they are buying from countries we willl not buy from due to political reasons such as Chad and the Sudan.

It is simple business math.... if a widget costs 1 dollar and it costs 75 cents for the materials and labor to make it happen then your profits should be uniform. An increase in material costs would result in an increase of purchase price but the profit would remain constant. What we have here is a slight increase in the production costs with a exponential increase in the purchase costs. Dont give me the "speculator driving the prices up" crap..... if that were the case the oil companies would not be reaping the profits that they are. I cant wait to see this first quarter reports!! Get ready to be shocked.

I hope fuel goes to 10 a gallon so that all of those Chevettes I see with GW stickers can really reap the benefits of supporting the Oil Man.........

Jupiter Sunsation

I am spending a solid 1600-2000 month in fuel for 4 trucks and my wife's car. The boat can be another 250-500 depending on usage. Nothing I can do about it, I just charge more for my work and it all works out. I hope that fuel hits $5 gallon and there is less traffic (waterway and highway), less competition, and less pollution. That maybe fantasy but I can't change energy policy, walk to work or get a solar powered boat so I compensate by charging more! We still have far cheaper fuel than other places I have visited in Europe so it is still good to be an American.

kswest

In Jan 04 crude was $30 a barrel. Today it is in the 70s a barrel. (http://commodities.thefinancials.com/) In Jan 04 the average natl. gas price was $1.49 today gas is $3.00 (http://www.eia.doe.gov/oil_gas/petro...s_history.html) imagine that ... crude has more than doubled, gas prices have just about doubled.

I don't agree with any of Pres. Bush's or Cheney's politics, but to blame the price of gas on them (or the oil companies) is just naive.

i don't want to pay $3.00 a gallon more than anyone else; however, instead of putting the spotlight and pressure on the oil companies we need to look to our own govt. and ask them why we are being taxed so heavily (see above post).