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wy do we pay so much???/
scottm21166
Member Posts: 20,723
In other Nymex trading, natural gas futures fell 14.7 cents to $4.480 per 1,000 cubic feet - after its lowest close last week since Sept. 10, 2004. Gasoline futures slid marginally to $1.4700 per gallon, while October heating oil futures declined 0.78 cent to $1.6394 a gallon.
Comments
Look real close at how much in taxes is on ALL oil and gas products. It is ridiculous.
Then WAAAAAAAAAAY down on the list is the ~8% Profit the oil companies make on it; That gets taxed too.
(These are 2005 figures)
States ranked by total gas-tax burden, including state and federal levies.
Source: American Petroleum Institute
Total gas-tax
burden/gallon
New York 62.9 cents
Hawaii 60.1 cents
California 60.0 cents
Illinois 54.6 cents
Connecticut 53.9 cents
Michigan 52.4 cents
Nevada 51.9 cents
Wisconsin 51.3 cents
Florida 49.8 cents
Pennsylvania 49.5 cents
Rhode Island 49.4 cents
Washington 49.4 cents
Indiana 48.0 cents
Ohio 46.4 cents
Montana 46.2 cents
Maine 45.8 cents
North Carolina 45.8 cents
West Virginia 45.4 cents
Nebraska 44.6 cents
Idaho 43.4 cents
Kansas 43.4 cents
Utah 42.9 cents
Oregon 42.4 cents
South Dakota 42.4 cents
Maryland 41.9 cents
Massachusetts 41.9 cents
State Total gas-tax
burden/gallon
Delaware 41.4 cents
North Dakota 41.4 cents
Georgia 41.2 cents
Colorado 40.4 cents
Minnesota 40.4 cents
Arkansas 40.1 cents
Iowa 40.1 cents
Tennessee 39.8 cents
New Hampshire 39.0 cents
Alabama 38.7 cents
Washington D.C. 38.4 cents
Louisiana 38.4 cents
Texas 38.4 cents
Vermont 38.4 cents
Virginia 37.7 cents
Arizona 37.4 cents
Mississippi 37.2 cents
Kentucky 36.9 cents
New Mexico 36.4 cents
Missouri 36.0 cents
Oklahoma 35.4 cents
South Carolina 35.2 cents
New Jersey 32.9 cents
Wyoming 32.4 cents
Alaska 26.4 cents
Anchor Glass (makes Bud bottles) got caught with there shorts around their ankles. They failer to hedge there natural gas purchases, and signed contracts to supply bottles based upon natural gas prices staying at the level they are today. A typical bottle factory can use as much natural gas as the residential usage of a major city.
How about consumer prices for propane? My guy was offering a prepay at $1.59/ a gallon. Last two years it was $1.39. I have not heard what the cash price is this year.
Your first stop for the day is the Quicky-Mart 35 miles away. You have been delivering fuel to these folks for the past 8 years, that was when Shell oil decided the location was a poor retail outlet and sold it to the current owners. Naturally you are in the business to make money so you are selling the gasoline you just bought for $1.47 to the Quicky-Mart for $1.70, a profit for you of $1,840 for the load of fuel in your tanks. Of course you have to make the payments on your truck(s), pay for insurance, pay your drivers and also pay for the diesel your rig burned driving that 70 mile round trip from the refinery to the retail outlet. That $1,840 gets eaten up pretty fast! Once you drop the gasoline at the Quicky-Mart it's price now has to include all of the various taxes that Dan out lined so lets add 50 cents per gallon as an example. That gasoline is now $2.20 and the Quicky-Mart has not even made a profit yet. Of course Mr. Quicky needs to make a few bucks so he tags on 15 cents per gallon for himself bringing the total cost of a gallon of fuel at the pump to $2.35 per gallon. That my friend is EXACTLY how the retail gasoline market works. In our next lesson we can cover the marketing of branded fuels.
the cheapest fuel we have is AM/PM atlantic richfield...they sell unleaded regular at 2.55 a gal
that was informative kristov, thank you..
k, you need to stop with the dispersal of reality based information. If you keep this up long enough, there will be some who come to doubt the truth we all know that it is really just a secret conspiracy of dozens of countries, hundreds of oil companies, and hundreds of thousands of individuals, none of whom will give up or reveal the secret. Not everyone will come to that realization of course, but some will, so you must stop in order to allow them to retain their comfort zone. If ignorance is bliss, some folks are experiencing pure rapture.[:)]
At the last monthly meeting of America's wealthy elites held at you plush Indiana estate, I was warned again not to reveal these secrets. By the way, Lynn's apple pie was fantastic and I noticed that George and Barbara Bush each had a second slice [;)].
Scott, if the station next to the refinery is a branded station owned by the one of the majors who use that refinery then the transportation cost of the fuel is going to be the same whether it is trucked 100 miles are sent in a pipe 100 feet under the street. This is the same thinking that Ford uses for their destination charge on new cars and truscks: If you live in Detroit you'll be paying the same destination charge as a person living in Dallas. I spent my first five years as an engineer working for Union Oil and I learned that the "Big Tent" idea does not exist at a major oil comapany. The only thing that the folks pumping the crude, the folks refining it and the folks marketing the finished product have in common is that they all got a check every two weeks from Union Oil. Other than that the drilling, refining and marketing operations are totally removed from each other and the people selling the fuel are actually buying the product from the divison which refined it and they are paying rack price for it! Each division (and there are many more than the three that I mentioned) is run as an independent operation and each has to stand on it's own two feet or heads roll upstairs and someone gets shown the door. Owning a franchised gas station is not a license to print money like many people think. You'll pay a premium for your motor fuels if you want to have that big orange ball spinning aorund outside your Union Oil station (Which is now owned by Con-Phillips). What you do get with that franchise is an assurance of timely deliveries of motor fuels and access to world wide advertising and marketing. Even if that ARCO station was an independent franchise it MUST purhcase ARCO branded fuels and these will always be more costly than generic unbranded gasoline. On the other hand the Quicky-Mart's only advertising is the sign out front of the station and the board which shows a price 5 to 8 cents less than the branded station. If you live on the west coast then you can count on paying the highest motor fuel prices in the lower 48 and that is not going to change any time soon.
So the price drop is not due to what heppened, but rather due to what DIDN'T happen.
Scott, if the station next to the refinery is a branded station owned by the one of the majors who use that refinery then the transportation cost of the fuel is going to be the same whether it is trucked 100 miles are sent in a pipe 100 feet under the street.
Years ago when I was a young boy, we lived in Ft. Worth. My parents had a family friend who took a trip to Detroit each year and bought two new cars. One was a station wagon and the other was always a sedan. They drove them for a year, sold them for cash in Texas, and then returned to Detroit for two new ones. The price differential in that day and age, and the much lower price of cars was enough that they could drive the car for the year virtually for free as far as the depreciation was concerned.
That was considered to be unfair by many of the folks in congress, and the laws were changed so that, as k said, the shipping cost would be the average of the cost throughout the country for everyone, regardless of where you lived. As Mond says, that ended that.
So what has changed?
Read k's post, he has covered virtually every base worth mentioning. The market is driven by future expectation, not current reality. If people think things will be bad, the price goes up, if they regain their optimistic attitude about the future, the price goes down.
The metals markets are doing virtually the same thing, and for many of the same reasons. Investing is a future good, but speculation is based on fear to a great degree. Investing and speculation are not the same thing.
I don't care whether they simply provide more health care resources to men in order to increase our lifespan, or just make it so that when women reach a certain age, they have to die. I'm just really upset at the inequality of the current situation.
So what has changed?
Exxon-Mobil geologists just discovered a huge pool of light sweet crude directly under your home Vic and the market took notice! Expect your first royalty check next month.
Thats rich [:D][:D][:D].You made my day.Do you think the price of gas or heating oil will go back up in febuary?
Greed drove the price of gas up beyond 3 bucks a gallon.
Today, facing an election, the price drops to under 2 bucks. Look for a price spike just before election...to 'prove' to the masss that the election has nothing to do with low prices....