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Pain at the pump wonder why

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posted on Mar, 15 2012 @ 06:05 PM
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There are a few elements to the price of gas at the pump however people just love to blame Big Oil but the simple fact is the middleman is where all the action is and that is state and federal taxes primarily sales tax.

According to Wikipedia not such a great source but hey for the sake of argument lets run with it.


Fuel taxes in the United States vary by state. The United States federal excise tax on gasoline, as of February 2011, is 18.4 cents per gallon (4.86 ¢/L) and 24.4 cents per gallon (6.45 ¢/L) for diesel fuel. In January 2011, motor gasoline taxes averaged 48.1 cents per gallon (12.71 ¢/L) and diesel fuel taxes averaged 53.1 cents per gallon (14.03 ¢/L).[9] For the first quarter of 2009, the mean state gasoline tax is 27.2 cents per US gallon, plus 18.4 cents per US gallon federal tax making the total 45.6 cents per US gallon (12.0 ¢/L). For diesel, the mean state tax is 26.6 cents per US gallon plus an additional 24.4 cents per US gallon federal tax making the total 50.8 cents US per gallon (13.4 ¢/L).[10] There are also a few states and municipalities that charge sales tax on top of the excise taxes and the retail price. The states that have a tax on their fuel, impose a tax on commercial drivers that travel through their state, even if the fuel is not purchased in that state. The paper work for this taxed on a quarterly basis and filed somewhat like a federal tax return that is done yearly. Most commercial truck drivers have an agent fill out the paper work. The driver calls in their information, the agent figures out how much tax should be paid to each state, then the agent faxes the forms to the driver and they are required to carry the papers with them along with their travel log books.[c


en.wikipedia.org...

So around 50 cents per gallon the states and the federal government get off the top and millions of barrels a day are used which means they are making money hand over fist.

Regulation is another thing that adds to the cost of gas at the price at the pump via EPA next up another villian created the "speculators".

Here is another link
en.wikipedia.org...

the state and federal by state breakdown it is commonly known that from east coast to the west coast to the gulf coast everyone pays a different price at the pump which is why we always see the "national average" but surprisingly why is it that no one ever asks

Why is someone in New York or California paying more than people are in fly over country ?

Increased price at the pump has a benefit for green crowd it is forced conservation which means people are using less fuel which is more effective than green legislation and EPA regulations.

The bottom line is the consumer is caught between a rock and a hard place if people still don't get this within the last 20 years cigarettes have gone from $1.50 a pack to over $10 bucks in some places in this country.

They always talk about supply and demand but if the demand decreases the price will rise anyway but with gas the demand has increased and will continue to increase by design.

Gas,Tobacco.Firearms ATFE are the most regulated and the most expensive things in this country but the people who are making the most profit is Government via taxation and regulation.

edit on 15-3-2012 by neo96 because: (no reason given)




posted on Mar, 15 2012 @ 06:12 PM
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I never understood why Americans complain so much about gas price when they have some of the cheapest prices compared to other Western countries.

And when the US is buying Canadian oil on the cheap.


It’s costing the energy patch $50-million for every day that Canadian oil sells on the cheap.

That’s an $18-billion annual hit to companies, and it could endure into 2013 or longer, according to a new analysis of the damage wreaked by an ongoing supply glut.

“If you don’t think this is a big issue, think again,” said CIBC World Markets Inc. analyst Andrew Potter, who calculated the dollar impact of the current lower value of Canadian oil.


The industry spent 2011 watching the value of North American crude tumble relative to the international price of oil because of pipeline backups in Cushing, Okla., the key U.S. trading centre. Now, additional backups face Canadian oil moving into its key export market, the U.S. Midwest, and prices have fallen further.



posted on Mar, 15 2012 @ 06:17 PM
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Nail hit on the head.
Obama and his admin
are very responsible.
We need to be able to drill,
lifting the moratoreums on oil drilling.
There is more oil in the gulf, and in
shell which just more recently has been discovered
to frack... President have something to do with this too..

YOU BETCHA!



posted on Mar, 15 2012 @ 06:22 PM
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Its a dead on fact that Fed & State taxes on gas increase the price astronomically--- just like cigarette taxes do with that 50¢ pack which finally sells for $5 or more...

So too the gallon of gas... but the user/consumer is the only one getting ripped... as the drillers/producers get tons of tax breaks and government subsidies for the exploration & production risks


all i can do is shake my head in exasperation



posted on Mar, 15 2012 @ 06:22 PM
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reply to post by boncho
 


Honestly, we complain about prices because years ago they didn't fluctuate like they do today.
I remember about 12-15 years ago the price of gas hovering at $1.13/gal for months, if not longer.
Maybe raise up $0.10 or so depending on location.
Now all the sudden, it can jump $0.20-$0.30 in an hour!
Not to mention that it has jumped up 300% in ten years...
Who wouldn't complain about that?!
When you see steady prices your entire life, then, changes over-night...you wonder.
The conspiracies run wild in this topic, but the fact is, the price is manipulated.

Of course we are going to complain.
That's all we seem to do these days.
Everyone is soooo flouridated and prescription drugged up to care.
We don't fight back like our fore-fathers.
This gov't did a good job controlling its population.
And we pay them to do it.
Tax by ever-loving tax.







posted on Mar, 15 2012 @ 06:22 PM
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It's actually the speculators that keep the price high. There is no price discovery mechanism because they manipulate the market for their profit.


Oil prices are set by commodities traders who buy and sell futures contracts on the commodities exchanges.These are agreements to buy or sell oil at a specific date in the future at a specific price. Commodities traders can create a self-fulfilling prophecy by bidding up oil futures prices. Once this starts, it can create an asset bubble. Unfortunately, the one who pays for this bubble is you!



Like most of the things you buy, oil prices are affected by supply and demand. However, oil prices are also affected by oil price futures, which are traded on the commodities futures exchange. These prices fluctuate daily, depending on what investors think the price of oil will be in the future. When traders think oil will be high, they bid it up even higher. This soon causes rising gas prices.


useconomy.about.com...



posted on Mar, 15 2012 @ 06:29 PM
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Blah lets take the gold bubble if a massive introduction of new gold was introduced into the market the result would be the price of gold would drop massively.

Same thing would occur with oil hence the need for more drilling more oil in the system the price would drop and since eveyone just loves to hate speculators that would effectively neutralize them.



posted on Mar, 15 2012 @ 06:29 PM
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reply to post by neo96
 


Taxes and regulations are just one of the many ways the gubment screws us on oil prices. All of their out of control spending also drives up the cost due to inflation. Then there are the speculators who buy up oil futures to keep them off the market until prices raise enough for them to profit from our misery. The gubment has the authority to go after the speculators through the CFTC but, their budget was slashed in 2008 andthey are constantly undermined and prevented from doing their jobs. Some estimate that speculation adds $40 to the cost of a barrel of oil or $8-$16 per tank of gas, depending on what type of car we drive.

The biggest Myth about oil prices is that there is nothing the gubment can do about it. they want us to suck it up and get used to ever rising prices.

Of course, the biggest thing the gubment could do to stabilize oil prices would be to tell Israel to stuff it and that we won't support them if they attack Iran. We get most of our oil from Canada and Mexico and export 2/3 of what we refine to other countries so what happens over there won't really affect our supply but, it gives the speculators cover for driving up the prices by making consumers THINK there will be a disruption in our oil supply.




edit on 3/15/12 by FortAnthem because:
___________ extra DIV



posted on Mar, 15 2012 @ 06:35 PM
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It is mainly because of the falling US dollar from what I have read, If they quit printing money then gas will go down, if they don't quit printing the whole country is going down....
Link
www.cnbc.com...

Regards, Iwinder



posted on Mar, 15 2012 @ 06:38 PM
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reply to post by FortAnthem
 


But you are talking a global market with global investors/speculators as long as the dollar is tied to oil and devalued the more expensive it will be here,right along with regulations.

Not so much in the rest of the world when their currency has double the value on the currency exchange people can't regulate the world no matter how much they want to.

I don't think big oil makes a buck off a gallon i know that person who sells you that gas locally if they are lucky makes less than 20 cents.

If the value of the dollar doubled you would effectivly cut the price at the pump in half which i do believe under Reagan i was pay 89 cents a gallon but during that time the value of the dollar had more value.
edit on 15-3-2012 by neo96 because: (no reason given)



posted on Mar, 15 2012 @ 06:43 PM
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I am all for getting at the truth, which does not come with a single exclusive answer, but rather who(gov or oil co's) has the most fingers in the pie. Do you guys think we should continue to give oil co's 4.5 billion in taxpayer subsidies?. PT2, PT3
I know this is Obama, but within the speech is pertinent info for the mix in deciding who is the biggest culprit. I feel, as another member once suggested, corporations are becoming instruments for a tyrannical government, with marriages between the 2 that benefit both and still leave us, the public, out to dry.
So who is more to blame? Gov, oil co's, regulations, or state? In my opinion, it is the power and lobbying force(speculators included) of the oil co's that are, not all, but most to blame.

spec



posted on Mar, 15 2012 @ 06:43 PM
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posted on Mar, 15 2012 @ 06:47 PM
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Originally posted by neo96
reply to post by FortAnthem
 


But you are talking a global market with global investors/speculators as long as the dollar is tied to oil and devalued the more expensive it will be here,right along with regulations.

Not so much in the rest of the world when their currency has double the value on the currency exchange people can't regulate the world no matter how much they want to.


You are forgetting that the price of oil is driven perception, not reality. If we create the perception that the US is cracking down on speculators, it will drive down the price because they have created the perception that something is being done about it. The perception would be that speculators could do jail time for what they do and fewer people, even on the world market, would be willing to take the risk.

The same thing would happen if Obama opened up domestic oil drilling or tapped the strategic reserves. The oil would take years (or months in the case of the strategic reserves) to get to market but, the prices would start to go down NOW because of the perception of an increase in oil supply coming in the future. That perception would force the speculators to sell off their futures now before prices begin falling and would result in immediate price decreases.



posted on Mar, 15 2012 @ 06:49 PM
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reply to post by FortAnthem
 


No haven't forgotten

The outlook doesn't look good which drives up the price good news such as opening up drilling, building refineries and buliing the Keystone would have seen an exdous of speculators.

People can blame speculators all the want the only way to mitigate their impact is to reduce the impact Government has.



posted on Mar, 15 2012 @ 06:51 PM
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Here are the UK averages for Fuel Prices at the moment (We use Litres)...

Unleaded - £1.35 Litre
Diesel - £1.43 Litre

Converted into US $ we have...

Unleaded - $2.12 Litre
Diesel - $2.24 Litre

According to this article: articles.latimes.com... the average gas prices for the US from January 2012 are as follows:

Regular - $3.55 Gallon
Diesel - $3.89 Gallon

Based on 4.55 Litres in a UK Gallon compared to 3.79 Litres in a US Gallon, if you American citizens were paying the UK's prices, here's what you'd be paying!

Regular - $8.03 Gallon
Diesel - $8.48 Gallon

Based on this, Americans should thank themselves lucky they aren't paying the UK's prices!



posted on Mar, 15 2012 @ 06:57 PM
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Here a few more links to back up my opinion on this matter...
www.weeklystandard.com...
newsroom.aaa.com...
www.marketowl.com...
money.usnews.com...
www.bankingmyway.com...


And hundreds more with the same opinion,
Regards, Iwinder



posted on Mar, 15 2012 @ 06:59 PM
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Petrol is a ripoff. Here in Australia at the moment its around $1.56 per litre ($5.90 gallon). Of course there is various taxes and excise on the price per litre, but what gets me is that the GST is applied AFTER all other taxes/excises have been added. I cant seen to find any concrete information at the moment about how much, but it would take about 20c a liter off the price per litre if the GST was applied BEFORE all other taxes/excises.



posted on Mar, 15 2012 @ 07:04 PM
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reply to post by neo96
 


I agree, the gubment should get out of the way and allow legitimate businesses to do what they can to increase our oil supply, especially here at home.

While they have been increasing regulations on industry, at the same time, they have decreased regulation on the single most destructive elements of our economy; that casino known as the stock market and banking.

The stock market was meant to bring together men with excess capitol with men with innovative ideas for producing goods and services for the people of the world. Somewhere along the way, it got turned into a high stakes casino operation while the regulators who should have curbed abuses turned the other way and the gubment cut their authority to regulate the market to prevent speculation.

Now stock prices are the only thing that is important, never mind if that stock actually produces goods and services anymore. CEOs are paid to give the perception of a strong profitable company so that shareholders can sell high before the general public catches on to reality.

I agree 100% that there is way too much regulation on industry but, at the same time, I believe that we are sorely lacking on regulations in the financial markets. Maybe if we were to turn all of those regulators holding back industry toward the financial markets, we could get this country back to its industrial roots while calming the instability of the markets and creating a stable business environment.



posted on Mar, 15 2012 @ 07:08 PM
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reply to post by FortAnthem
 


The Frank Dodd act of 2010 took care of that the creation of the Consumer Protection agency and expansion of the Federal Reserve powers as well as que1 and 2.

Gas will continue to rise and there is nothing going to stop it.



posted on Mar, 15 2012 @ 07:15 PM
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Originally posted by neo96
reply to post by FortAnthem
 

Gas will continue to rise and there is nothing going to stop it.



Oh, there's plenty that can be done to stop it; the CFTC has the authority to go after speculators, the gubment could stop printing money like there's no tomorrow and we could end restrictions on off shore and domestic oil drilling. Those things would go a long way toward bringing down prices.

What is lacking is the political will among our "leaders" to take any of these actions. They are in the pockets of the people making a mint off of the oil price spike and they aren't going to be allowed to do anything about it as long as we keep electing the same scumbags into office.

Don't say there is nothing to be done about high oil prices; there is plenty that could be done. The problem is; the people with the authority to do anything about it refuse to act.



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