Quote:
Originally Posted by torino73
Don't kid yourself, friend. The reason diesel went up is so that we can bear the cost of the refineries re-tooling to produce ULSD. They are still making record profits- so I guess the raping diesel consumers take at the pumps hasn't covered their costs yet. It probably never will as long as consumers are forced to pay it.
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Hey friend, this just in, the U.S. does not have meaningful influence on the price at the pump. While the change in ULSD at the refinery has added cost (same for the ridiculous amount of boutique gas blends) it is not the main factor. Price per barrel is. Price per barrel is influenced by OPEC which has 2/3 of the reserves. Our diving monetary policy has driven the price up as well. The Saudis laughed at Bush when he asked for an increase in production.
Let's pick on Exxon, the worlds largest public oil company. IIRC, they are 14th on the list of oil reserves. 14th and they control less than 4% of the worlds production. They have little bite on the subject. They are making record profits because they are selling more unit volume at a higher price. I assume the same would happen in your business. We can apply windfall tax but who determines that and how much? In any event, it's doubtful the tax would lower prices at the pump.
We can cut usage which will then be consumed elsewhere in the world. Plenty of oil but demand is rising and it is going to cost more to explore and produce.
