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The State and Local Government are taking $0.70 from the $4.43 you pay at the pump.  Add another $0.18 for the Federal government and that $0.88 a gallon.

The democrats rail against the big oil companies who produce, refine and deliver product to the gas pump. Democrats propose windfall profit taxes on these companies.  To what end will there additional taxes benefit the consumer?  New taxes will not lower the price of gasoline, in fact higher taxes in the form of state sales taxes are contributing to higher prices.  This is a tax windfall for sate and local governments without any additional costs to the state.

The elements that make up the retail price of Branded Gasoline sold at the pump is detailed in the table below. You may notice that after the crude oil is sold to the refiners, Exxon Mobile, Chevron, etc that the largest bite of the June 9th price of gas goes to taxes, at $0.70 a gallon. The refiner takes $0.51 a gallon for producing the product.  Recently the presidential campaigns suggested that there be a moratorium on the Federal tax of $0.18 a gallon.  The real money is in state and local taxes where the sales tax increases the tax bite as the retail price increases, a windfall for state and local government.  I have not heard any proposal for a rollback of the “Windfall Sales Taxes” only additional taxes on oil companies.

Branded
	May 5, 2008	May 12, 2008	May 19, 2008	May 26, 2008	June 2, 2008	June 9, 2008
Distribution Costs, Mayketing Costs and Profits	$0.13	$0.06	$0.06	$0.04	$0.01	$0.02
Crude Oil Cost	$2.86	$2.96	$3.03	$3.15	$3.04	$3.20
Refinery Cost and Profits	$0.24	$0.23	$0.19	$0.23	$0.51	$0.51
State Underground Storage Tank Fee	$0.01	$0.01	$0.01	$0.01	$0.01	$0.01
State and Local Sales Tax	$0.29	$0.29	$0.29	$0.30	$0.31	$0.33
State Excise Tax	$0.18	$0.18	$0.18	$0.18	$0.18	$0.18
Federal Excise Tax	$0.18	$0.18	$0.18	$0.18	$0.18	$0.18
Retail prices	$3.90	$3.92	$3.95	$4.10	$4.24	$4.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The complete sorce for this data and Estimated 2008 Gasoline Price Breakdown & Margins Details was found at website of The California Energy Commission With more information found at

Retail Gasoline Price: The weekly average price for California from the Energy Information Administration (EIA) (http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html).