The Gasoline Thread

[Sirgin]

Ah, get it now, thanks phoenix.

I don't know enough of US politics/geographics to know Chicago is in Illinois or that Obama is a Senator in Illinois.

[NES_Rules]

Gas seemed to stall at $2.95 at the lowest, but I finally saw $2.85 on my way home from school. I had to get gas the other day at $3.09, but I didn't fill up because I knew it would drop more this week. Maybe by the time I fill up again, it will be $2.50

[Moriya Hanzo]

i just found my graduation yearbook from high school. Gas was $1.85.....damn what a change.

[logical123]

Still in the low to mid 3.40's around here...

The Chicago area seems to be much more expensive than most other places of the US. Do you know what causes that?

*cough*OBAMA*cough*

The actual reason is this:

Illinois has one of the highest fuel tax rates in the country, at 57.9 cpg (cents per gallon). California is highest, at 63.9 cpg. In the City of Chicago city limits, there is an extra tax of 12.75cpg. So you can be on Austin, which is one of the dividing streets. On one side, gas is $3.999. On the other, $4.149. The main reason is that we do in fact have the 4th highest fuel tax in the country.

Oh, and Obama has nothing to do with it.[quote author=Sirgin

[two_scoop_steve]

$2.99 in my neck of the woods.

[logical123]

Saw $3.399 today. O.o

[blcklblskt]

$2.77 by my house at Raceway.

[The Metamorphosing Leon]

Still in the low to mid 3.40's around here...

The Chicago area seems to be much more expensive than most other places of the US. Do you know what causes that?

*cough*OBAMA*cough*

The actual reason is this:

Illinois has one of the highest fuel tax rates in the country, at 57.9 cpg (cents per gallon). California is highest, at 63.9 cpg. In the City of Chicago city limits, there is an extra tax of 12.75cpg. So you can be on Austin, which is one of the dividing streets. On one side, gas is $3.999. On the other, $4.149. The main reason is that we do in fact have the 4th highest fuel tax in the country.

Oh, and Obama has nothing to do with it.

Well sure Obama has nothing to do with it, that was just a stupid stab, but come now.

The reason you have expensive gas is because you have the 4th highest sales tax? That sure explains a lot.

Where did the higher taxes come from? If I remember correctly it is that the feds tack on a tax on Illinois gas, having never relinquished control of the tax after they need funds to build the highways. I can't remember the details exactly, it was something my father told me as we drove west and I asked why he refused to gas up in Illinois.

[logical123]

I say tax everyone high, and fix gas at $4.999 everywhere. First, how many people will challenge my reasoning? Then, I will explain. 

[phoenix1967]

Paid $2.79 last night.

[captain_nintendo]

3.11 here, but I am hoping it drops more before I have to fill up.

[Sirgin]

I say tax everyone high, and fix gas at $4.999 everywhere. First, how many people will challenge my reasoning? Then, I will explain. 

It would atleast be a start to get prices relatively comparable to those in Europe.

[The Metamorphosing Leon]

I say tax everyone high, and fix gas at $4.999 everywhere. First, how many people will challenge my reasoning? Then, I will explain. 

Explain, and if you bring up the environment or Europe I lose all respect for you.

[Moriya Hanzo]

Drops 5 cents every other day. $3.10 up the road.

[logical123]

I say tax everyone high, and fix gas at $4.999 everywhere. First, how many people will challenge my reasoning? Then, I will explain. 

Explain, and if you bring up the environment or Europe I lose all respect for you.

I won't, I promise. But first: $3.349. O.O

Okay, now my explanation: profit. The gas station business is one of the worst in the world. The profit on a gallon of gas is extremely low (as in from 1 tenth of a cent to 2 cents), and sometimes, like all businesses, the have losses. Gas stations, on the other hand, have HUGE losses. I am now going to launch into a scenario...

Gas is at a wholesale price of $3.149 (the price of a barrel doesn't have anything directly to do with gas prices. It is the wholesale cost that we should worry about. Barrel cost trickles down into wholesale, which trickles down into the pumps).

The Federal Government adds a mandatory tax of $0.249 per gallon.
The State government adds a mandatory tax of $0.549 per gallon.
The City government adds a tax of a percentage no lower than 2.75%, and no higher than 4.75%.
Add sales tax of whatever the sales tax is. (11% or so in Cook Cnty.)

So we have:
$3.149 + $0.249 + $0.549 = $3.947 * 3% = $4.065 * 11% = $4.512

$4.512 as your current base price. Subtract $4.512 from $4.999, and you get $0.487 per gallon profit. The gas station business would boom, tax revenue would increase, and we could have better funding for everything. Americans need to stop whining at every little damn thing. As James said, gas costs upwards of $8 a gallon in the UK, and they still drive about the same amount as us.

Rant is over. And without saying 'environment'. I brought up Europe, but not as part of my plan, so it doesn't count.