This news report talks about rising gas prices and states that for every $50 you spend on gas:
$30.75 goes to the oil company
$7.00 to the refinery
$6.00 goes to the government
$4.00 to the distributor
$1.25 goes to the credit card company
$1.00 to the gas station

The entire article insinuates that the oil company is being greedy, but how fair is that?
$50 in gas, with prices around $4 a gallon, will get you about 12.5 gallons. There are 42 gallons to a barrel of oil, so your $50 in gas becomes slightly less than a third of a barrel of oil. Oil is currently about $110 a barrel. A third of that is about $33, which is about what you pay.

What changes the price of oil? In this case, blame the dollar. The government is not counting the price of fuel or food when they calculate inflation. The government is spending so much that the dollar is losing value, which is increasing the price of goods bought overseas, and the number one imported good is—- gasoline.

Blame profligate deficit spending for the pump prices.

Categories: Uncategorized

1 Comment

Jake (formerly Riposte3) · February 23, 2012 at 11:26 pm

And I had another take on that same video, and how slanted it is. My most relevant point being that they utterly fail to address how much of that ~$31 that goes to the oil company is profit and how much is just covering costs (storage, infrastructure, regulatory compliance, etc.). Thus, the story is deliberately slanted to make the oil companies look greedy.

They also chose a station that was getting ready to change the prices (you can see the sign blinking at the start) and then acted shocked (shocked!) that prices went up while they were filming!!!!11!1!!!eleventyone!!1!!

I hate the media.

Comments are closed.