For a while, it has been in style to rip on Oil companies and accuse them of price 'gouging.' It is about time these trendy complainers looked at the causes of the price of gasoline.
According to the Tax Foundation, the average state gas tax per gallon is 20.8 cents per gallon. The federal tax on gas is 18.4 cents per gallon. Combine these two and you get the average tax per gallon out of all the states at 39.2 cents.
According to the EIA, the average price of a gallon of gas as of today, March 3rd, is $3.162.
Also from the EIA:
"Distribution, marketing and retail dealer costs and profits combined make up 9 percent of the cost of a gallon of gasoline."
9% of $3.162 is approximately $0.284
39.2 cents out of $3.162 is 12.397%
Look at that, you have government taxes costing more per gallon of gasoline than Distribution, marketing, and retail dealer costs and profits. Basically, an entity that does nothing for the production and refining of Oil takes more of the profit than the retailer.
The lesson of this is: don't be so quick to bite the hand that feeds you. You might want to look at the fat government bureaucrat stealing the food off the side.
