[Ansteorra] gas prices too high...sorry had to share this

[David J. Hughes]

Rebbe Hadassah Sarai bas Yossi wrote:

>    If this makes sense to you, please pass this message
>    on. I suggest that we not buy from EXXON/MOBIL  UNTIL
>    THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND KEEP
>    THEM DOWN. THIS CAN REALLY WORK
>
>  
>
No, it can't.
Silly idea from people who know nothing about the oil industry or economics.

Gasoline, $ 3.00 / gallon
Federal taxes   0.40
Station owner's cut, (pays the salaryof the workers, bills, property 
tax, etc.) 0.03
ExxonMobil's cut  under franchise contract  0.01
Delivery charge 0.03
Processing  costs 0.25  (operating costs, maintanence, salary of 
operators, catalysts, etc.)
Raw material cost (price of oil per barrel times @1.35 divided by 42 
gallons per barrel)
for $71 per barrel    2.28
total 3.00

Price of oil is set by market demand.  $1.30 gasoline requires oil at $18
At $1 per barrel, the cost would be $ 0.75


That 1.35 number? Not all of a barrel can be made into gasoline, and 
some of it is used to fuel the refinery itself, to generate high 
pressure steam, electricity, make hydrogen,  etc.

I f people really did boycot EM, since the demand for oil would remain 
the same, EM would simply sell its gasoline to other companies at 
wholesale price and delivered by pipeline.
No taxes paid by EM, delivery cost drops to 0.0000001 per gallon, no 
dealing with all those franchise holders problems.
All the franchise holders lose everything, EM closes down that business, 
takes a one time tax loss of $8 billion dollars (which you get to make 
up to the government), EM ends up with an additional $2 billion dollar 
profit, and several thousand people are bankrupt, and 30,000 station 
workers are out of work..