Gas prices

pigman1 wrote:
Folks, gasoline futures this Friday morning are $ 0.67 a gallon. Yes that's futures but retail costs follow these closely on the way up and are very sticky going down. Add Federal state and local taxes and price you pay at the pump should be somewhere around $1.50-1.60 or lower. The retail establishments are literally committing highway robbery. And guess who's got the gun and who's the victim. And then, of course there's California and the rest of the west coast. Just can't wait till I hear them start to cry about lost tax revenue. Boo-Hoo, or should I say BS.

This post really confuses me. I think the supposition that the retailers are making a killing is a bit iffy. Yes, they have to make a profit but I don't think any of them are making a killing.

The part about us Coasters crying over lost tax revenue is what I don't understand. Lets just say, for the sake of argument, that the total load of state and local taxes is $1.50 a gallon. When the price goes up, or when it comes down we still pay $1.50 a gallon. This is a steady load paid per gallon regardless of the "price" at the pump. The only way I see the state getting less taxes is if the sales of gas goes way down. This will happen when prices go way up. If the price of gas goes, and stays, down then the tax flow to the state will increase as more gas is sold. Help me here. Isn't his how the tax structure works? I do know that in states where more hybrids are in use there is less gas sold per mile than regular cars and trucks. They are looking at an excise tax on these. Good arguments about this on both sides.