For all you “oil companies are evil giants out to eat children” people.
is this accurate?
My dad, grandpa, great uncle, and uncle all work for Oil Companies in one form or another and this is accurate. At least for the tax on consumers.
There’s another tax for the producers of the oil.
But what about the profit? Do they make less of a profit than the government?
Oh hell yeah the Government makes more off of oil than the companies that produce it do. At the very least as far as fuel like gas and diesel go.
There are all kinds of federal and state taxes on it.
Nowadays it’s around 18¢ a gallon on average that oil companies earn.
Then the gas stations have to make a profit and are also being bled by the government in one way or another.
If oil had just one tax on it, the price change would be drastically reduced.
But instead it’s bled out with taxes all over the place in every which way the government can take it. Whether it’s a tax on the consumer, producer, or distributor.
Oil and gas companies actually make a LOT more of a profit in other ways and on the other products that are made by petroleum than they do from the gas and diesel that run cars. In comparison the money they make from gas and diesel is almost chump change.
Oil goes into a massive variety of other products we use on a daily basis all across the United States.