I paid $1.62 on US 65 a few miles south of Branson Mo. on New Years Day .
Saw it as cheap as $1.59 down the highway , but what''s 3 cents ? It was
$1.83 last I looked here but then it's always higher here .
And going down. The supply is way too high, and there really is no way
to create more demand. With climate change (thank you Republicans), the
demand for heating oil is decreasing, with more fuel efficient vehicles
(thank you Democrats) the demand for motor fuels is decreasing.
The retail distribution of gasoline is also changing to the benefit of
the consumer, much to the dismay of smaller retailers, with Costco,
along with large supermarket chains, getting into the retail
distribution business and being willing and able to accept much lower
margins. I.e., in my area I can buy gasoline from the nearby Shell
refinery at Costco gas stations, at Arco gas stations, and at the
shrinking number of Shell stations. They are probably also supplying a
bunch of the other independent stations. The big money, even with lower
oil prices, is in extracting and refining, not in retailing.
As it goes down, the tax per gallon stays the same so in places like
California it will never be as cheap. I see $1.85 here in Delaware.
Watch out, that's when the greedy government bastards will push for a
Retired, don't drive that much, but figure I will save hundreds of $ on
heating oil this season.
The federal gas tax has not been raised for 23 years. As a result, the
interstate highway system is crumbling under a backlog of needed repairs.
If it could be guaranteed that an increase in the gas tax would be used
for road construction then it would be a good time to raise it.
Also note that the retail price of gasoline is based on supply and
demand. When taxes go up, the retail price does not necessarily go up by
the amount of the tax increase. Often someone in the supply chain has to
end up taking less, whether it's the oil supplier, the refiner, or the
California's gas tax is 19¢ higher than Delaware's but the difference in
the price of gasoline is much greater than that. There are many other
factors besides taxes that contribute to the price difference, some with
a real basis, some with a fabricated basis.
In California, the tax per gallon is periodically adjusted. It just came
down by 6¢ per gallon in 2015. Part of the gas tax is based on what the
sales tax would be on fuel if sales tax were applied to fuel.
On Monday, January 4, 2016 at 8:53:47 PM UTC-5, sms wrote:
Baloney. With a functioning free market, with many players, competition,
economics 101 says that the tax cost will be passed entirely to the
consumer. Companies are not going to give up their profit, they just
pass it along. Is this the new lib trick of the day? Pretend that
a gasoline tax, or any other business tax for that matter, gets paid
by someone other than the consumer?
More liberal class envy. Raise the taxes on corporations
"who can afford it" and "who profit unfairly". Of course
you are right, the only money corporations have is the
money they took away from their customers.
The libs keep forgetting that corporations don't pay taxes, their
customers do. It's just another cost of business that gets passed onto
the consumer like the electric bill.
You can't expect people with a Soviet mindset to understand the way the
market works. They want it all centrally controlled to conform to
their addled notions of "social justice." (When an American leftist
starts ranting and spewing about "social justice" be sure to hang on
to your wallet!)
Roger Blake (Posts from Google Groups killfiled due to excess spam.)
California is not really a free market and state restrictions are
largely responsible for high gas cost. Gas would be even cheaper if it
were not for all the boutique fuel requirements in lots of places.
Ethanol requirement also adds to the mess. Government over regulation
and crony capitalism screw the consumer all the time.
Would love to have natural gas heat but when my house was built the gas
company would not put in lines so I was stuck with oil. Some in the
neighborhood have gas trucked in.
On Tuesday, January 5, 2016 at 8:47:39 AM UTC-5, Frank wrote:
I was watching American Greed on CNBC the other night. It's a
series of real life scammers, crooks, who bilk people. They had
an episode about a black guy in DE who figured out how to take
advantage of the biofuel subsidies. When you produce a gallon
of biofuel, you get what amounts to about a 50 cent token that
you can sell to companies buying them. The companies that buy
them are oil refiners and similar, who have to either put biofuel
into their product or buy sufficient of these tokens to cover it.
So, this guy fills out the EPA paperwork, claiming that he has
27 plants producing biodiesel from waste cooking oil, gets listed
in the EPA directory. Companies start buying those tokens from
him. In fact, he has no production facility at all. Soon he's
selling a couple hundred thousand dollars worth a month. And
right after receiving payment, he buys another Bentley, Ferrari,
etc. This went on for a couple years. Finally, because he was
such a large "producer", the companies began to wonder why they
never heard of his company, never heard of a real plant, etc.
Eventually, the EPA came over for a visit and he took them to
an empty warehouse that had 3 tanks, claimed it used to be the
facility. He drove them around, told them his other plants were
over there and there, but couldn't take them there. So, that was
the end, right? No, the EPA just went away and the scan continued
for another half year.
What finally did him in? He was living in a nice middle class
neighborhood and buying and parking all those fancy cars on the
street. He had about 15 of them and it got so bad the school
bus stopped coming down the subdivision street, for fear of
hitting one of his cars. So, parents had to take their kids out
to the main road. That got one mom pissed and she called the
local cops. They took a look, found it interesting and started
doing some investigating. They uncovered the scam. By the time
he was caught, he had pocketed tens of millions of dollars. He
wound up getting 12 years. You can just imagine how much more of
this there is in all the crony capitalism subsidy programs, in
one form or another.
It's leading to our economic downfall. I read it happened to Argentina
many years ago.
The first rule of business is to go where the money is. If government
is the source of money, business goes there for it.
When the government has problems they will place the blame on the
business but today's business men, for the most part, don't care because
they took the money and ran.
There must be LSD-25 in that Koolaid you've been drinking , because you're
hallucinating . When are you people going to learn that BOTH PARTIES are
complicit in the way things are ? They're all bought by the same people ,
and any difference is purely an illusion to keep the sheeple in line .
And as far as global warming , that's been shown to be pure undiluted
horseshit . When "scientists" have to go back and change the data to fit
their conclusions ... all I can say is "follow the money" and see who's
benefitting from it . You'll fond it's the same people that are pushing it
so hard .
I worked in R&D most of my life.
People refuse to believe that scientists would fudge to give the answers
that people that pay them want.
Most of these scientists work for the government and we know what the
current government wants.
On 1/4/2016 2:52 PM
I live in an oil patch area and my dog and I were just out walking. A
motel is few blocks away and walked past it, what a difference a year or
two makes, a couple of years ago the parking lot was full of oil/gas
company trucks of all kinds, today there wasn't a single one. When the
oil patch is good it's very good, when it's bad... boom and bust, boom
and bust over and over. I doubt we've seen the low for crude yet and no
telling how long till we have a shortage again but it will happen.
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