Who’s Making A Killing In Gasoline Sales?
Well, let’s see. ExxonMobile maybe? Here’s what they say on the ExxonMobile Perspectives Blog….wait, what is this blog? It’s a blog by ExxonMobile that, as they themselves say it, “offers our company’s views on the issues, policies, technologies and trends that are shaping the energy industry.” This is refreshing. ExxonMobile is not going to hide under their board room table in abject fright of brutish politicians. They’re going to say what they think. It’s about time. Companies like ExxonMobile, which are not part of Obama’s crony capitalism clique [such as GE, BP, and At&T to name just a few] are standing up for themselves instead of making fools of themselves trying to appease gangster government.
For every gallon of gasoline, diesel or finished products [ExxonMobile] manufactured and sold in the United States in the last three months of 2010, [it] earned a little more than 2 cents per gallon. That’s not a typo. Two cents.
Two cents a gallon. That’s about what the gasoline retailers earn on each gallon of gasoline sold. Retailers complain of how little they make on gas sales, but Exxon makes no more than they do. That makes the retailers look like they’re doing well. After all, building and maintaining refineries costs about a million times more than buildng and running a convenience store.
So who is making a killing on gasoline sales? Here’s a clue:
Voila! It’s state governments that are making a killing with an average profit of 48 cent per gallon. That’s right, state governments are raking in a higher profit per gallon than any other economic player in the entire chain of exploration, development, extraction, refining, transporting and retailing, an endeavor by dozens of economic entities and individuals that through their combined cooperation transform crude oil a mile or more beneath the surface of the earth into gasoline in your tank. Who’s in second place? The Federal government with about 23 cents a gallon in taxes.
So Obama can’t reduce these prices by cutting so-called subsidies to the oil and gas industry [most of what Obama calls “subsidies” for oil and gas are just ordinary and necessary business expense the companies pay themselves and deduct from their gross income to determine their taxable income. The real subsidies go to such wasteful things as ethanol, wind farms, solar energy and other “green energy” boondoggles.] But he and other governments could reduce prices by giving up some of their own lavish profits.