Making Gasoline/Diesel More Afforedable

[OnePercenter]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

 

[Wyatt earp]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

The 70's and price controls? heck no...

 

[itfitzme]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

Where you get 40 cents from?

Here is an interesting table of margins for gasoline production all the way up the supply chain. Unfortunately, data on production cost alone is not available.

Estimated 2013 Gasoline Price Breakdown & Margins Details

Crude Oil ..... *$2.55
Refinery ...... *$0.60
Distrinution . *$0.24
Taxes *......... *$0.65
-------------------
Total pump . *$4.05

$0.40 above taxes seems a bit low. *

Prices also have to be able to fluctuate with ecoonomic conditions. *An absolute peg would be a bad idea.

 

[OnePercenter]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

The 70's and price controls? heck no...

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

 

[dilloduck]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

The 70's and price controls? heck no...

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

That's hasn't worked out well.

 

[OnePercenter]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

Where you get 40 cents from?

Here is an interesting table of margins for gasoline production all the way up the supply chain. Unfortunately, data on production cost alone is not available.

Estimated 2013 Gasoline Price Breakdown & Margins Details

Crude Oil ..... *$2.55
Refinery ...... *$0.60
Distrinution . *$0.24
Taxes *......... *$0.65
-------------------
Total pump . *$4.05

$0.40 above taxes seems a bit low. *

Prices also have to be able to fluctuate with ecoonomic conditions. *An absolute peg would be a bad idea.

In 2008, Exxon/Mobil profits were record numbers even though gasoline prices dropped from $4.12 in June to $1.59 in November. How is that possible?

 

[itfitzme]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

Where you get 40 cents from?

*Here is an interesting table of margins for gasoline production all the way up the supply chain. *Unfortunately, data on production cost alone is not available.*

Estimated 2013 Gasoline Price Breakdown & Margins Details

Crude Oil ..... *$2.55
Refinery ...... *$0.60
Distrinution . *$0.24
Taxes *......... *$0.65
-------------------
Total pump . *$4.05

$0.40 above taxes seems a bit low. *

Prices also have to be able to fluctuate with ecoonomic conditions. *An absolute peg would be a bad idea.

In 2008, Exxon/Mobil profits were record numbers even though gasoline prices dropped from $4.12 in June to $1.59 in November. How is that possible?

Spot on question. *The prices for fuel go back half a century at least. *When they are plotted in real dollars, the price of gasoline was absolutely flat until about 2000. *That was a) when we hit full employment of the US population and b) China began to ramp up as a major economy.

Demamd for oil refinery products began to climb, along with prices, tonit's peak just before the recession. *When the global economy collapsed, demand for refined oil products collapsed as well and prices fell all the way back to their 1998-2000 level. *(Also, the US trade imbalance fell back to near zero as US imports fell off.) Since then, as the global economy has begun to stabilize and show growth (however anemic), the demand for oil and refinery products has returned and gasoline prices have risen back to their 2007 level.

That said, the global oil production and refining market is dominated by ologopolies that enjoy dominant market leverage. *That is to say, that market has more leverage and power than any other market in tbe free market economy. *The oil production and refining market has huge economies of scale and entry costs. *The product itself is as close to a neccessity as can be expected, shot of air, water and food. *It provides huge returns to efficiency in use. *It is in short supply by comparison to other high demand products.

That said, price is held, without the need for collusion, at the maximum price that the market will bear. Exxon, BP, and the likes, price and demand at each station every day with thay data going to corporate headquarters. *They employ economists that run finely tuned models which can allows them to price gasoline with near perfection, controlling demand and maximizing profits.*

That is what is up.

Still, no one but the oil producers and refining companies have the information that allows them to know what the profit margins are. *Individual distributers and storage companies are not in the position or have the inter-market leverage to command major profit.

This creates a problem when it comesnto attempting market controls. Control requires having information. Lacking the information, there is no control. Attempting to control prices would be pissing in the wind.

So the oil companies have us over a barrel and there lacks the political will, leverage, or general public understanding to do anything about it.

 

[OnePercenter]

Where you get 40 cents from?

*Here is an interesting table of margins for gasoline production all the way up the supply chain. *Unfortunately, data on production cost alone is not available.*

Estimated 2013 Gasoline Price Breakdown & Margins Details

Crude Oil ..... *$2.55
Refinery ...... *$0.60
Distrinution . *$0.24
Taxes *......... *$0.65
-------------------
Total pump . *$4.05

$0.40 above taxes seems a bit low. *

Prices also have to be able to fluctuate with ecoonomic conditions. *An absolute peg would be a bad idea.

In 2008, Exxon/Mobil profits were record numbers even though gasoline prices dropped from $4.12 in June to $1.59 in November. How is that possible?

Spot on question. *The prices for fuel go back half a century at least. *When they are plotted in real dollars, the price of gasoline was absolutely flat until about 2000. *That was a) when we hit full employment of the US population and b) China began to ramp up as a major economy.

Demamd for oil refinery products began to climb, along with prices, tonit's peak just before the recession. *When the global economy collapsed, demand for refined oil products collapsed as well and prices fell all the way back to their 1998-2000 level. *(Also, the US trade imbalance fell back to near zero as US imports fell off.) Since then, as the global economy has begun to stabilize and show growth (however anemic), the demand for oil and refinery products has returned and gasoline prices have risen back to their 2007 level.

That said, the global oil production and refining market is dominated by ologopolies that enjoy dominant market leverage. *That is to say, that market has more leverage and power than any other market in tbe free market economy. *The oil production and refining market has huge economies of scale and entry costs. *The product itself is as close to a neccessity as can be expected, shot of air, water and food. *It provides huge returns to efficiency in use. *It is in short supply by comparison to other high demand products.

That said, price is held, without the need for collusion, at the maximum price that the market will bear. Exxon, BP, and the likes, price and demand at each station every day with thay data going to corporate headquarters. *They employ economists that run finely tuned models which can allows them to price gasoline with near perfection, controlling demand and maximizing profits.*

That is what is up.

Still, no one but the oil producers and refining companies have the information that allows them to know what the profit margins are. *Individual distributers and storage companies are not in the position or have the inter-market leverage to command major profit.

This creates a problem when it comesnto attempting market controls. Control requires having information. Lacking the information, there is no control. Attempting to control prices would be pissing in the wind.

So the oil companies have us over a barrel and there lacks the political will, leverage, or general public understanding to do anything about it.

That's the long answer. The short answer; It's fixed.

Nobody but the oil companies know the true numbers of cost.

Crude Oil ..... *$2.55
Refinery ...... *$0.60
Distrinution . *$0.24

What's listed above are the numbers that the oil companies tell us, but have not proven them to be correct.

 

[Mr. H.]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

The 70's and price controls? heck no...

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

You're an idiot.

 

[westwall]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

Oh lookey here. Yet another socialist claiming to be one thing but is actually the exact opposite. One percenter my ass. Just another troll living in moms basement railing at society because they're too damned lazy to do any work.

 

[OnePercenter]

The 70's and price controls? heck no...

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

You're an idiot.

You have three companies that control 95% of the gasoline sold in the US and they sell it at or about the same price. It's called a monopoly of perfect competition.

So how do you control a monopoly?

 

[OnePercenter]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

Oh lookey here. Yet another socialist claiming to be one thing but is actually the exact opposite. One percenter my ass. Just another troll living in moms basement railing at society because they're too damned lazy to do any work.

Socialist ideals help the middle class prosper.

 

[itfitzme]

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

You're an idiot.

You have three companies that control 95% of the gasoline sold in the US and they sell it at or about the same price. It's called a monopoly of perfect competition.

So how do you control a monopoly?

With a Supreme Court decision based on anti-trust laws. So how do you propose to file an ant-trust law against three seperate companies that are not explicitly conspiring?

(BTW, I am pretty sure it isn't called "a monopoly of perfect-competition". I know what you mean and it is a perfectly good synthesis of words. But you know how lawyers, politicians, economists, and many others are. If you don't use the right words, they just don't understand...)

 

[tipofthespear]

......if the Oil Companies are or are not conspiring to keep prices at certain levels, but the price of Crude is set based on the "Speculators." The reason most prices rise in the Energy Industry is because of the "Futures Market," and the price speculation that goes on there, or, at least that is what I am told.

Now, Big Oil may well be part of the problem, and probably are, but the real 800 pound gorilla in the room is the Futures Market as I understand it........could be wrong though.

The thing is, most people hate Big Oil and want to replace it with another renewable energy source such as Bio-Diesel, Wind, Solar, Coal, Natural Gas...........whatever.......and they don't consider that IF this happened, then there would just be......

Big Bio-Diesel Corporations such as Big Corn and such......
Big Wind Corporations.........(uh, no, wait, Tacco Bell's got that covered)
Big Coal..............

Getting rid of Big Oil will only create another "Big..........." will it not?

Seems to me the best approach is "all of the above," but that isn't going to happen because of the Special Interest Groups on both sides of the Political landscape.......

 

[martybegan]

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

You're an idiot.

You have three companies that control 95% of the gasoline sold in the US and they sell it at or about the same price. It's called a monopoly of perfect competition.

So how do you control a monopoly?

Please tell me how oil companies will be able to produce refined products below cost.

 

[westwall]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

Oh lookey here. Yet another socialist claiming to be one thing but is actually the exact opposite. One percenter my ass. Just another troll living in moms basement railing at society because they're too damned lazy to do any work.

Socialist ideals help the middle class prosper.

Socialist ideals in the end destroy the middle class idiot. They are good for a while but then the reality of the human condition always catches up to them. Do read a few history books before you spew this crap.

 

[PaulS1950]

There was no middle class in socialist Russia (USSR) - you were poor or in power.

 

[whitehall]

The list also includes heating oil which is a big budget item for the middle class. Ethanol is an expensive additive to gas and it's nothing but a feel-good promotion. Ethanol lowers octane and it costs more to grow than it saves in energy.

 

[tjvh]

Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.

The 70's and price controls? heck no...

Big oil is a monopoly. There's only one way to effectively control a monopoly. Regulate the shit out of them.

And sleep soundly knowing they would never pass those additional costs on to consumers... What fictional economy do you live in?

 

[tjvh]

The list also includes heating oil which is a big budget item for the middle class. Ethanol is an expensive additive to gas and it's nothing but a feel-good promotion. Ethanol lowers octane and it costs more to grow than it saves in energy.

Not to mention what it has done to the price of food, and the countless people who starve overseas because of it.