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Comment on: Right-Wing Gridiron

On Rising Prices at the Pumps: Ideas for a better Energy Policy

2 Comments

the helpful fed

It's noteworthy that when gas goes up 10 cents, something like 6 of those cents are due to the government's effective price increase (they get a fixed %-age). Don't remember the exact numbers, but that is never communicated anywhere, seems like. Price gouging? The govt gets the biggest piece of any increase!

Right on, Elvis!

I thank you very much, good sir, for bringing up this most crucial point to my blogpost. I did not want to drag the piece on and on, but you brought up a most important yet seldom discussed issue regarding the current high gas prices with which we have to contend.
As you mentioned, the government essentially gets the largest piece of the pie regarding the price of gas per gallon. Their "profit margin" is roughly 30 cents (or is is 30 percent? Might as well be) per gallon, where as the stations that sell the gas get roughly 5-10 cents per gallon. Yet, as you likewise eloquently mentioned, few people are accusing the government of "price gouging."
If there were any justice in the world, it ought to be the other way around. The oil company has to explore for the oil, drill the oil, refine the oil, and then sell it at the gas stations. All the government does is come in and skim the profits off the top.
It all boils down to another case where the Democrats fulfill yet another scenario of the pot calling the kettle black. Thank you again, Elvis, for bringing up this important point; keep on rockin' and rollin'!