GAS PRICES...EVERYTHING SEEMS TO BE GOING ACCORDING TO OBAMA'S PLAN…

 

 

We've all heard about what Barry calls his "all of the above approach" to energy policy, but we just haven't seen much in the way of positive results from it. And as much as I hate to sound like a broken record, since Barry first entered the Oval Office the price of gas has done nothing but go up. The average price of a gallon of gas has increased 96 percent since Barry "Almighty" first took office in 2009, and that's would be according to figures from the Energy Information Agency (EIA). According to EIA data, the average price of a gallon of regular unleaded gasoline in the United States was $1.838 on Jan. 19, 2009--the day before Barry took office. As of Monday, Feb. 11, 2013, the per-gallon price had risen to an average of $3.611--an increase of 96 percent. The $3.677 is not the highest gas prices have been under President Obama. That record was reached the week of May 9, 2011 when they averaged $3.965 per gallon.

 

Now gas prices did decline a bit during the recession but they have steadily climbed back to near their pre-recession peak under Barry, despite his push for greater fuel-efficient cars and trucks and near relentless pursuit of expanded clean energy, wasting literally Billions of dollars along the way. Gas prices have never been this high in early February at any time in American history, also according to EIA. Even in 2008 when gas prices reached all-time highs. Consumers can therefore plan on taking another huge hit in the wallet this year, being force to pay out even more to fill up. Because with the two percent Social Security tax hike which began the new year, gas prices are now soaring ever closer to $4 a gallon and have jumped 51 cents a gallon just since Dec. 20. And when you add both of these to rising food prices we can expect so see not money left over to spend on buying those things that might actually stimulate the economy.

 

According to the Oil Price Information Service, the national average for a gallon of unleaded was $3.21.9 on Dec. 20, 2012. Today, less to two months later, that price in $3.73. While there has been a steady increase, prices shot up almost 9 cents just over this past weekend. This President's Day also marked something that we've never witnessed before that being a full month of rising gas prices every single business day, following a very small early year drop in price. February 2013 saw record high gas prices for the time of year according to news reports. CNBC noted the national average was the highest ever for this time of year on Feb. 1. As of Feb. 11, The Los Angeles Times reported that the national average that day ($3.587) was also a record, "7.8 cents higher than the record for Feb. 11, set last year." Today's price is now 17.6 cents higher than it was in 2012.

 

As is usually the case, it took the state-controlled media some time to take notice of the fact that gas prices are going up. One of "Good Morning America's" resident morons, Josh Elliot, recently observed that "we have just learned that gas prices have skyrocketed." Just learned? Does this moron not put gas in his car? And those higher pump prices hurt consumers, who are already paying more for gas than they have in decades. The Energy Information Administration (EIA) reported recently that the average household spent more on gas last year, as a percentage of income, than it had in 30 years. The Hill's Ben Geman wrote on Feb. 4, "the average household spent $2,912 for gasoline in 2012, which makes up almost 4 percent of pre-tax income, tying 2008 for the highest percentage in roughly 30 years." The media actually forecast falling prices in 2012, during the heated presidential election. Many of those predictions failed.

 

Look, the bottom line here is I think we all know what's behind the fact that we have high gas prices. It's because Barry wants us to have high gas prices. I mean, it's just that simple. He's made that quite plain on any number of occasions. There's really no other way to explain it. It's all part of Barry's continuing war on fossil fuels and forcing us to accept his cockamamie 'green-energy' nonsense. Gas prices have been at sustained highs throughout most of Barry's time in office. And yet, we hear very little complaining coming from those who made themselves quite busy in blaming the high prices at the time, on George "Big Oil" Bush. And the prices then were nowhere near what we have today. One could arguably say that the silence coming from Democrats is deafening. And what is it, exactly, that Barry can point to his having done to keep gas prices from going through the roof. Nothing, he's pretty much taken a hands-off approach.

 

Ok, I know, there are any number of various factors that essentially determine the price we pay for a gallon of gas, and I'll be the first one to admit that. But I also think that Barry has done none of those things that he could have done in an effort to make sure that they remain as low as possible. Especially if his claims about trying to stimulate our sluggish economy are to be, in any way, believed. But he has shown absolutely no interest, whatsoever, in doing anything of the kind, in fact, everything that he has chosen to do has resulted in just the opposite taking place. The Heritage Foundation noted just last August that "after three years of adding regulatory hurdles and blocking exploratory access and development, President Obama's policies are helping keep prices higher than necessary." Hence, my saying that when it comes to higher gas prices, everything seems to going according to Barry's little plan.



SO WHO’S 'REALLY' RAKING IN THE MOST MONEY FROM THE SALE OF GASOLINE?

Before you answer, I want you to think about something. The top 10 states with the highest state taxes on a gallon of gasoline also happen to all be blue states, that is they are all states that went for Barry "Almighty" in 2012, with the exception of two states that were blue in the 2008 election but then turned red this year. According to data analyzed by the Tax Foundation and provided by the American Petroleum Institute, the title of having the highest taxes (cents per gallon) on gasoline goes to New York. There the total state-level gas taxes equals 49 cents.

Coming in, in second place, which is actually a tie, are California and Connecticut, there the total gas-per-gallon taxes equals 48.6 cents. North Carolina comes in at number six on the list, with taxes of 39.2 cents – the Tar Heel state went red in 2012 for Republican challenger Mitt Romney but was blue in 2008 when Barry was elected to his first term. Indiana was the other blue-to-red exception, and has a gas tax of 38.9 cents. Florida rounds out the top ten list. There the gas tax equals 35 cents on every gallon.

The top 10 states with the highest gas taxes are listed below:
New York 49 cents
California 48.6 cents
Connecticut 48.6
Hawaii 47.1 cents
Michigan 39.4 cents
N. Carolina 39.2 cents
Illinois 38.9 cents
Indiana 38.9
Washington 37.5 cents
Florida 35 cents

So why does gas cost so much, and who is making the most money? Now you can blame high gas prices on rich oil company executives or greedy gas station owners if that makes you feel better, but that’s not actually the case. The truth is that governments rake in a much larger ‘profit’ at the pump than anyone, and sadly there appears to be no relief in sight. The fact is the price of a gallon of gas is based on the combination of four costs: that of crude oil, of refining gas, of distribution and marketing, and, of course, taxes.

Crude oil costs make up about 76% of the cost of gasoline, and that’s according to U.S. Energy Information Administration (EIA). Thus $2.66 of a $3.50 gallon of gasoline is set before the oil is even refined. Global markets, reacting to supply and demand, are what actually determine the cost of crude oil. Just like any other commodity, from gold to corn, a shortage in supply or an increase in demand leads to a rise in prices. And with Barry pretty much refusing to allow any new drilling in this country, we continue to be at the mercy of foreign suppliers.

Refining oil is the next step in the process—and the next expense for drivers. Gasoline is extracted from crude oil and additives, including lubricants and detergents to reduce engine deposits, are added. As of January 2012, the EIA found that refining was responsible for 6% of the cost of gasoline. Also worth keeping in mind here, is the fact that we have not been allowed to build a new refinery here in this country for over 30 years, we’ve been prevented from doing so by the same politicians who prevent us from drilling.

Distribution and marketing, the part of the process most apparent to consumers, constitutes another 6% of gas prices. That portion of the cost includes the shipping and transportation of the gasoline, a markup to cover retailers' expenses, and any advertising created to appeal to customers. I can only assume that many folks, when accusing, or in nodding in agreement as Barry talks about greedy oil companies, must think this all happens by magic, totally free from any investment of capital being needed. Those folks are, morons!

The remaining 12%, or roughly 50 cents per gallon today, goes directly to federal, state and local governments in an array of sales and excise taxes. The federal gas tax is 18.4 cents on every gallon of gasoline sold in America. State gas-tax, as pointed out earlier, rates vary from a low of eight cents per gallon in Alaska to a jarring 49 cents per gallon in New York. Other states where it's steep to fill up include California and Connecticut—each with 48.6-cent-per-gallon gas taxes—and Hawaii, at 47.1 cents per gallon.

Some local governments have even gotten in on the act. In California, local sales and excise taxes on gasoline average 3.1%, according to the Los Angeles Times. That works out to about 12 cents in local taxes for each gallon of gas, based on the state's current average of $3.80 per gallon. Skokie, Ill., a suburb north of Chicago, levies a gas tax of three cents per gallon. You'll pay an extra nickel per gallon at gas stations in Eugene, Ore. In Florida, Brevard County expects to siphon more than $15 million from motorists this year, according to the newspaper Florida Today.

Put this all together, and government makes far more from gas sales than all of the oil companies put together. Exxon, for example, made only seven cents per gallon of gasoline in 2011. That's a drop in the bucket compared to the nearly 50 cents per gallon that federal, state and local governments rake in on an average gallon of gas pumped in the U.S. For some families struggling to make ends meet, paying 50 cents per gallon in taxes may be the difference between driving to work and putting dinner on the table.

So the next time you feel the urge to, or Barry tries to convince you to, blame those evil, greedy oil companies, speculators or service stations for high gas prices, remember that no one makes more money off of gasoline than government. So what that means is, we have a government that does not spend one dime in bringing the product to market that is the very same entity that makes the most money off of the sale of that product. How insane is that? And what give any government, whether local, state or federal, the right to do so?