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Old 01-06-2011, 04:04 PM   #169
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Posts: 289 Does the government really make more in taxes from the sale of a gallon of gasoline than the oil companies do?

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Old 01-06-2011, 06:37 PM   #170
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The short answer, for those not reading the pointer is, yeah, probably...
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Old 01-06-2011, 07:06 PM   #171
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For us, the yearly cost for diesel fuel (at 20,000 miles / year) is rather insignificant to all the other costs of owning a coach. If diesel fuel is available, I’ll buy it.
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Old 01-06-2011, 07:11 PM   #172
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Old 01-06-2011, 09:14 PM   #173
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Likely I will not drive as far if gas goes to the moon, but in no way does high gas invalidate the RV life style. Europe has a very big RVing community and they have had high gas prices for years.

My suggestion. And I have done this myself. When gas prices head up I buy more stock in oil companies. That was I get some of the money back as my shares inevitably go up and dividends do the same. So any of you with funds to invest, don't get mad, get even.
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Old 01-07-2011, 02:18 AM   #174
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When gas goes up our Canadian dollar goes up which helps a little to off set the fuel costs when traveling state side.
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Old 01-07-2011, 08:53 AM   #175
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In some of the replies on this subject, there were statements about the IRS does this or that. I just want to set the record straight. The IRS does not make the tax laws. Congress makes the laws that IRS is required to enforce. The IRS has no power, except what Congress gives it. Ask me how I know this. 17+ years there, with the last 10 working for the Taxpayer in the Taxpayer Advocate Office. Just my two cents worth.
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Old 01-07-2011, 10:22 AM   #176
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How come diesel is $.30 higher in Florida than in the Midwest?. Just checked and it's $3.09 here in MO and $3.49 in FLA
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Old 01-07-2011, 11:00 AM   #177
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wthomas, clockwise or counterclockwise on that dead chicken?
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Old 01-07-2011, 11:06 AM   #178
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Originally Posted by a k View Post
How come diesel is $.30 higher in Florida than in the Midwest?. Just checked and it's $3.09 here in MO and $3.49 in FLA
Differences between states often reflect the applicable state tax charged on the fuel. That's the first factor to examine.

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Old 01-07-2011, 03:34 PM   #179
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Just because the government makes more off fuel than the oil companies is immaterial. Government makes more off whiskey or beer than the distillers also. But what does that prove? Only that government is greedy. Not that the oil companies or distillers aren't making a killing. No one has to use alcohol. Everything in commerce depends on oil. And just in case anyone thinks oil is a free enterprise. I have some ocean front property for sale in Arizona.
Another thing I want to clarify is hedging. You have to own and have control of a commodity to put on a hedge. Otherwise you are speculating.
The oil market is manipulated by speculators courtesy of our congress. Just a few years ago this was not possible.
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Old 01-08-2011, 12:15 PM   #180
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So a lot of folks think that speculators are what is driving up the price of oil. I'd love to know how. If that were the case we would all be buying and selling oil futures rather than driving our RV's. Any level of commodities buying is fraught with huge risks. The oil price is geared toward supply and demand and the value of the US dollar much more so than the actions of speculators. The speculator is gambling on the price of oil being higher in the future than it is now. If demand drops and the price also drops, the speculator just lost his shirt and more.

Let's try this example to see if it may make sense. We buy most of our oil from Canada. About two years ago it was $.85 US to $1 Canadian. Now it is a 1 to 1 ratio. If the price of oil has not changed in Canadian dollars it just went up almost 18% in cost of US dollars due to the decrease in value of the US dollar as compared to the Canadian dollar. As our dollar goes down the price of oil will go up. Add to it the billions of new drivers in China, India, and elsewhere in Asia and you have more dollars chasing an incresingly scarce natural resource. There may come a time in the not too distant future where we will all lean back and remark about the good old days when diesel was only $5 a gallon.
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Old 01-08-2011, 12:30 PM   #181
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Actually, only the speculator who is going long is gambling on rising prices. The speculator who goes short is gambling on falling prices. There's money to be made whether the price rises or falls.

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Old 01-08-2011, 12:31 PM   #182
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So a lot of folks think that speculators are what is driving up the price of oil. I'd love to know how.
Because MSNBC said so...
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