PSA: It's an average of 7 cents a gallon to the Gas Station Owner not the OIL COMPANY

[AccruedExpenditure]

I don't know where people are getting that stat from but they're misinterpreting it. Yes the government takes a chunck money from the pumps in the form of taxes, but XOM, BP, and other oil companies are making a lot more than 7 cents per gallon on each gallon sold.

Simply look at the wholesale price of gas (the baseline cost of gas to the station owners) and you can figure out how much big oil is selling gas to station ownersLink to chart. Add transport + taxes and you can figure out how much your station owner is paying for his gas. Throw in overhead and you get your 7- 10 cents a gallon profit margin.

Again, this stat is for station owners not big oil. It doesn't cost more to take oil out of the ground/refine into gasoline. Higher wholesale prices today are a function of increased demand, further worsened by geopolitical fueled speculation. Just look at the today price of heating oil and compare it to the historical wholesale prices if you don't believe me.

 

[iamwiz82]

I was paying more per month to heat my home this winter than what I'm paying now for gasoline. At about $3.50/gal it will be slightly more to drive our cars, but even then it would take a lot more to really effect our finances.

 

[Vette73]

SShhhh. Republicans don't want dumb voters to know the truth. They still need your vote. So don;t vote Democrat, vote republican because they have been doing a bang up job the last several years while in control of ALL 3 branchs.

 

[iamwiz82]

Originally posted by: Marlin1975
SShhhh. Republicans don't want dumb voters to know the truth. They still need your vote. So don;t vote Democrat, vote republican because they have been doing a bang up job the last several years while in control of ALL 3 branchs.

As if you have any right to be arguing politics either way, with your stunning political education and experience.

EDIT: This is not to say that I have any inner knowledge of politics, either.

 

[RagingBITCH]

Originally posted by: Marlin1975
SShhhh. Republicans don't want dumb voters to know the truth. They still need your vote. So don;t vote Democrat, vote republican because they have been doing a bang up job the last several years while in control of ALL 3 branchs.

Yea, fvck Republicans for driving up the cost of gas, god damn moronic jackasses :roll: :roll:

 

[Beige]

Originally posted by: RagingBITCH

Originally posted by: Marlin1975
SShhhh. Republicans don't want dumb voters to know the truth. They still need your vote. So don;t vote Democrat, vote republican because they have been doing a bang up job the last several years while in control of ALL 3 branchs.

Yea, fvck Republicans for driving up the cost of gas, god damn moronic jackasses :roll: :roll:

I'm sure the democrats would have screwed us over the same or a different way.

 

[Dead3ye]

Took long for this thread to turn into a political flamefest... :roll:

 

[gigapet]

Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

 

[Excelsior]

More bullsh!t. :disgust:

 

[Mr Pickles]

Higher wholesale prices today are a function of increased demand, further worsened by geopolitical fueled speculation.

Agreed... The guys on the other side of the water pumping it out of the ground wearing the turbans plays only half the part in prices. The white guy with the big car and nice suit that just got laid off from the Marlboro corporate office and now has a job in the oil industry does the classic Cesar thumb up or thumb down on the price we pay as well.

When the media tells the US that fuel is going to reach record price highs during the summer you better damn well believe the businesses shoveling the stuff into our tanks will live up to the statement just because we've let them.

 

[kranky]

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

 

[AccruedExpenditure]

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

It's been misquoted time and time again on these forums that big oil makes only cents on the gallon, that was the point I was trying to address. get YOUR facts right.

so if there is $0.42 per gallon in tax, but the profit to the oil company is only $0.07 per gallon, who is doing the gouging? the govt?

link

the profit on a gallon of unleaded is much less than the tax on a gallon of unleaded

link

Fobot isn't the only one who has been saying it, but he's the first one that comes to mind.

 

[gigapet]

Originally posted by: kranky

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

companies are not industries in themselves. THats what makes the average some oare higher some are lower.

 

[iversonyin]

Originally posted by: gigapet

Originally posted by: kranky

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

companies are not industries in themselves. THats what makes the average some oare higher some are lower.

I don't get what are you trying to say?

 

[SampSon]

Oil companies make an average of 7-10 cents per gallon, regardless if you believe it or not.

 

[Queasy]

Here is a pretty picture that breaks down the cost components of gasoline.

From a good read on the oil industry

 

[AccruedExpenditure]

Originally posted by: SampSon
I'm an idiot and a tool, regardless if I believe it or not.

fixed

 

[five40]

Originally posted by: SampSon
Oil companies make an average of 7-10 cents per gallon, regardless if you believe it or not.

Probably more like 7-10 cents per dollar of gas sale.

 

[FoBoT]

Originally posted by: kranky

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

i hope congress passes some laws against MS soon, they are gouging us!!

 

[FoBoT]

Originally posted by: AccruedExpenditure

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

It's been misquoted time and time again on these forums that big oil makes only cents on the gallon, that was the point I was trying to address. get YOUR facts right.

so if there is $0.42 per gallon in tax, but the profit to the oil company is only $0.07 per gallon, who is doing the gouging? the govt?

link

the profit on a gallon of unleaded is much less than the tax on a gallon of unleaded

link

Fobot isn't the only one who has been saying it, but he's the first one that comes to mind.

thanks for pointing that out

so how do you feel about the proposal in congress to give everybody $100 check in august and repeal the gas tax for 60 days and repeal the tax breaks to the the oil companies? do you think that type of action by the congress will lower demand or increase supply?

 

[gigapet]

Originally posted by: iversonyin

Originally posted by: gigapet

Originally posted by: kranky

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

companies are not industries in themselves. THats what makes the average some oare higher some are lower.

I don't get what are you trying to say?

he gave examples of companies that exceeded 8.5% I was saying that you will find many companies that exceed that % but the industry averages across the board are lower.

 

[CPA]

Originally posted by: gigapet

Originally posted by: iversonyin

Originally posted by: gigapet

Originally posted by: kranky

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

companies are not industries in themselves. THats what makes the average some oare higher some are lower.

I don't get what are you trying to say?

he gave examples of companies that exceeded 8.5% I was saying that you will find many companies that exceed that % but the industry averages across the board are lower.

But if you use the S&P500 companies and re-arrange them in industry you still get 11%. Now adding more and more companies may dilute the number, but I think the S&P500 is a good sampling to compare against.

And people, don't forget that it's just not OUR Government, OUR society, OUR economy driving up prices. There's an apparently little-known uprising in the Chinese economy that is pushing this also. Their economy is growing much faster than ours and they need oil to fuel it. Throw in India, also.

 

[Apex]

Originally posted by: CPA

Originally posted by: gigapet

Originally posted by: iversonyin

Originally posted by: gigapet

Originally posted by: kranky

Originally posted by: gigapet
Last night the news reported oil companies make 8.5 cents on every dollar not every gallon. 8.5% is higher than the average for all industries.

get YOUR facts straight.

Dear Mr. Get Your Facts Straight:

ExxonMobil net profit margin 2006: 9.4%
BP: 8.4%
ConocoPhillips: 6.9%

Disney: 8.9%
GE: 11.4%
McDonalds: 12.0%
Microsoft: 31.6%
Average of ALL S&P 500 companies: 11%

Source: USA Today, today's edition.

companies are not industries in themselves. THats what makes the average some oare higher some are lower.

I don't get what are you trying to say?

he gave examples of companies that exceeded 8.5% I was saying that you will find many companies that exceed that % but the industry averages across the board are lower.

But if you use the S&P500 companies and re-arrange them in industry you still get 11%. Now adding more and more companies may dilute the number, but I think the S&P500 is a good sampling to compare against.

And people, don't forget that it's just not OUR Government, OUR society, OUR economy driving up prices. There's an apparently little-known uprising in the Chinese economy that is pushing this also. Their economy is growing much faster than ours and they need oil to fuel it. Throw in India, also.

Agreed, great post. I'd also throw in though, that it's our people/govt that are keeping more refineries from being built. This is one important component in gasoline price. Raw supply is still reasonably high, but our refining capabilities are way under optimum levels.