The Hidden Truth Behind High Gas Prices...

So many folks are blaming oil companies, OPEC and speculators for the high price of oil. And to some extent they are partly responsible, each in their own way.

But today the Democrats in Congress are attempting to penalize the oil companies, not because they are responsible for high prices, but simply because they are making huge profits.

But consider this little fact that the Democrats in Congress are conveniently refusing to mention:

FACT: The oil companies make approximately 7 cents profit on every gallon of gasoline sold. But the government, in state and local taxes, makes between 40 and 60 cents on every gallon.

Seems to me that if the oil companies are "gouging" us at 7 cents per gallon, then the government is gouging us 6-8 times more, because taxes are added into the "cost of doing business", and are actually paid by the consumer, not the business.

As long as oil companies earn less per gallon than the government, we should be demanding that the government, not the oil companies, give up some of THEIR profits from gouging. If those taxes were not so exhorbitant, oil companies could reduce the price per gallon without sacrificing their profit margin. For example, if 7 cents per gallon is "gouging", then the government taxes should not exceed that. If those taxes were held at the same level as oil company profits, the price of gas at the pump would drop between 33 and 53 cents per gallon.

Other ways the government raises the cost of fuel:

1) Government forces refineries to make dozens of different blends, each to accommodate any local environmental regulations. This raises production costs substantially

2) Government (the FED, actually) prints more money, reducing the value of the dollar, resulting in more dollars being required to buy the oil from OPEC.

3) The government has virtually stopped new oil production in the US by refusing to issue new permits, and by closing off major production areas.

Does anyone actually believe it is NOT the government that is the problem? The government reminds me of the petulant child that gets into trouble, then tries to blame it on the dog, or the neighbor's kid - anyone but himself.

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