Making Gasoline/Diesel More Afforedable

Discussion in 'Clean Debate Zone' started by OnePercenter, May 26, 2013.

  1. OnePercenter
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    OnePercenter Gold Member

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    Cap regular unleaded and diesel prices to 40 cents above taxes at the pump nationwide.
     
  2. bear513
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    bear513 Platinum Member

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    The 70's and price controls? heck no...
     
  3. itfitzme
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    itfitzme VIP Member

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    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.
     
    Last edited: May 26, 2013
  4. OnePercenter
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    OnePercenter Gold Member

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

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    That's hasn't worked out well.
     
  6. OnePercenter
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    OnePercenter Gold Member

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    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?
     
  7. itfitzme
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    itfitzme VIP Member

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    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.
     
  8. OnePercenter
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    OnePercenter Gold Member

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    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.
     
  9. Mr. H.
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    Mr. H. Diamond Member

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    You're an idiot.
     
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  10. westwall
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    westwall USMB Mod Staff Member Gold Supporting Member Supporting Member

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    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.
     
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