Monday, May 01, 2006

Price Of Gas Is High!!

Who do you think makes the most money on the sale of a gallon of gas? I'll tell you. It’s not “Big Oil.” It’s Big Government. Gas taxes are worth 5 to 10 times what gas profits are. The federal and state governments use the tax money to build roads, while the oil and gas companies reinvest their profits into equipment and infrastructure.

Gas prices are higher now. That can be blamed on three groups of people.

1. The environmental lobby: They are primarily responsible for the fact that a refinery hasn't been built in America in 30 years. They are primarily responsible for the fact that no drilling goes on in the Atlantic, the Pacific or Alaska. They are primarily responsible for the switch from MTBE, which poisons groundwater, to ethanol, which does not. Where are they today? Celebrating their triumph for nature? They’re crying about their gas prices.

2. The federal government: For listening to the environmentalists and not acting faster to promote alternative fuels.

3. China and India. For increasing the demand for gas so high that it outpaces supply. That’s just plain economics.

Congress is calling for price-gouging investigations and a windfall profits tax. If price-gouging had occurred, we’d already know about it. And a tax on excess profits is simply a bad idea and sends a terrible message to other industries. Plus, the money would be wasted by the government.

1 comment:

Lance said...

Frankly, in reviewing Mr. McConnell's comments concerning China and India as a reason for increasing fuel costs I question his logic and others for the following and simple reason...
The living index for those countries does not match the Unites States. How can they sell $70.00 a barrel of oil and make a profit? And, how do those citizens afford $3.00 per gallon pump prices?
Then, and if they are not paying $3.00 a gallon price, why would the oil companys send their oil there rather than here where we are forced too?

Frankly, I think the oil manner is contrieved to boost environmental issues, to force greater car mileage and to leverage alternate fuels to move upward in development.