I believe the tax is fixed on a per gallon basis. Someone earlier mentioned
43cents and that sounds about right I guess. So if you take into
consideration that gas prices have almost tripled in the last few years, the
tax rate has stayed pretty much the same. The argument given to consumers is
that the cost of producing one gallon has increased significantly due to all
of the previously listed reasons(I seriously doubt that is has actually
tripled). But, to give it the benefit of the doubt let's just say that it
has. So we have the following breakdown of one gallon of gas:
(These numbers are an educated guess and are for discussion purposes only!)
$1.10 pump price
=$.67 per gallon gross revenue
-$.55 acquisition, refinement, and distribution costs
=$0.12 per gallon of profitability or roughly 18% gross profit margin.
$2.90 pump price
=$2.47 per gallon net revenue
-$1.65 acquisition, refinement, and distribution costs
=$0.82 per gallon of profitability or roughly 33% gross profit margin.
Why should people be upset with the oil and gas industry?
They went from making $.12 per gallon to $.82 per gallon! This EQUATES TO A
583% INCREASE per gallon of gasoline sold!! Just think, if their profit
margin had just remained steady at 18% over the last five years, their net
income from profit would have still tripled and gas prices would be at
~$2.01 per gallon right now.
Oil and gas companies are LAUGHING AT YOUALL THE WAY TO THEIR OFFSHORE
BANKS! What are you going to do about it?
"The OTHER Kevin in San Diego" <skiddz "AT" adelphia "DOT" net> wrote in
> On 09 Oct 2005 18:40:15 EDT, email@example.com wrote:
>>I believe you are forgetting something and that is the tax that the
>>government is alreadying getting on fuel. I believe that the tax goes up
>>as the prices goes up. Correct ? How about the government just charging
>>a fixed tax on a gallon independent of price.
> Next time you're at the pump watching the equivalent of the gross
> national product of some small countries count off as you fill the
> tank, read the little sticker that details the taxes "included" in the
> cost of the fuel.. It's not a small part of the cost by any means..