Sunday, March 25, 2012

Taxes On Gas


From Ace of Spades HQ:

Of any given barrel, according to the Texas Oil and Gas Association, only about 19.5 gallons of gasoline are derived from an average barrel of crude. That's less than 1/2 of the barrel, but let's say we could actually by that 1/2 barrel for 1/2 the price of a whole barrel - it would cost $52 for 19.5 gallons or $2.67 per gallon (at $120 barrel it would be $3 per gallon). According to the U.S. Energy information agency, 76% of the price of gas at the pump is attributable to the cost of crude (see here), 11% to distribution, marketing and refining and - 12% to taxes. Your local taxes may vary. Here in North Carolina, it's about $.35 gallon. According to this site, Exxon (for example) makes about $.02 per gallon profit, or about 1/15 of what the state takes in.

Obama claims:

“We have subsidized oil companies for a century. We want to encourage production of oil and gas, and make sure that wherever we’ve got American resources, we are tapping into them. But they don’t need an additional incentive when gas is $3.75 a gallon, when oil is $1.20 a barrel, $1.25 a barrel. They don’t need additional incentives. They are doing fine.”
Is this another of those 57 states deals?

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