Apr 13, 2007

Vent reveals Government worse than Big Oil

He makes an excellent point about how government taxation at the gas pump is overlooked as cause of high prices (e.g. subtract at least 50 cents from today's price).  The venter, however, turns a blind eye to the manipulation of the oil market, including how Exxon's accounting methods gouge the consumer immediately upon sudden change of the market while they have already processed the petrol into gas, and sold it at cheaper price, thus making a killing.  The oil industry has artificially increased prices by LIMITING PRODUCTION (refinery capacity has declined), thus decreasing supply and increasing prices.  More than anything else "fears of war" (i.e. Iran, military movements by U.S. in Mideast) drive the emotionally-driven market based upon NOTHING BUT SPECULATION, NOT COSTS.
"Most everyone who vents about being gouged at the gas pump clearly doesn't understand economics or even basic math. Exxon profits about 9 percent on every gallon of gas sold. The federal tax on a gallon of gas is around 18 cents and the West Virginia tax on a gallon is 32 cents. Nine percent profit is 9 percent regardless if gas is $1 a gallon or $10 a gallon. You are still paying more than five times that in taxes for each gallon. Who's gouging who?"