THE NATIVES ARE RESTLESS, THROW THEM SOME TRINKETS

Is It Ever Acceptable to Make Someone Richer At The Expense of Your Family?
09/08/06

My dedicated readers know that my blog’s most generally deal with current affairs and political observations. Recently however I have strayed away from that to give my mind a rest. I found that I was dwelling on our current sorry state of affairs way too much and I needed a break. So for awhile I dealt with subjects that also interest me and gave you a brief look into the workings of my artistic mind. The hiatus is over and it is now time to get back to work. Let’s see what’s been happening in the world while my mind was in hibernation…..

Wow, gas prices dropped another dime today! I am so happy that I am not going to bitch about the high price. I mean after all I’d rather pay $2.39 a gallon than $3.29 a gallon! At least that is what the oil companies want you to think and unfortunately the majority of us do. There is no way that $2.39 a gallon for gasoline is ever acceptable. Just like paying fifteen cents more a gallon for Diesel is never acceptable. Diesel is a by product of gasoline and is in fact a waste product that can be put to use. It cost less to produce a gallon of Diesel than it does to produce a gallon of gasoline. So why are we paying more for it? You know the answer as well as I do, GREED!

With the oil companies posting record profits and the current administration under fire they knew that it was time to pacify the general population. What better way to do it then with the very product that they are holding us hostage with? Fossil Fuel, our blessing and our curse. Do you even know what it costs to produce a gallon of gasoline? Here’s the average breakdown per gallon as of September 4, 2006;

Distribution Costs, Marketing Costs and Profits: $0.23
Crude Oil Cost: $1.60
Refinery Cost and Profits: $0.59
State Underground Storage Tank Fee: $0.01
State and Local Sales Tax: $0.22
State Excise Tax: $0.18
Federal Excise Tax: $0.18

Now it might seem perfectly reasonable that you pay $3.01 for a gallon of gasoline based on the above figures but let me point out a few small facts to you. In lines 1 and lines 3 there is a word used, “PROFITS” and lines 5 and lines 6 both levy State Taxes. Why are we paying dual State taxes on the same product? Once taxed a product should not be taxed again. It is dual taxation which is constitutionally illegal but we blindly pay it and never speak out against it.

Putting that aside lets get down to the meat of the matter. The price of standard crude oil on NYMEX was under $25/barrel in September 2003. There are 42 gallons to a barrel which made the crude oil cost per gallon $0.60. By August 11, 2005, the price had been above $60/barrel for over a week and a half. That was more than double the price. A record price of $78.40 per barrel was reached on July 13, 2006. The powers that be want you to believe that this record price was set due in part to North Korea's missile launches, Middle East Crisis, Iranian nuclear brinkmanship and reports from the U.S department of energy showing a decline in petroleum reserves. But we have always gone from one crisis to another without such drastic increases in our fuel costs. So what’s different know?

Well the most simple answer is usually the correct answer. On September 11, 2001 people went nuts and greedy service station owners took advantage of it. They price gouged their gas with some people suddenly paying up to $5.00 per gallon for fuel they had paid $1.68 a gallon for the day before. The oil companies took notice of this and figured out that we would , as Lemmings following the leader, blindly charge over the edge at the slightest hint of crisis and they exploited that weakness in ourselves. The oil companies now post record profits at the expense of you and your family. They will tell you that they do not make a profit (or very little profit) from oil and that their profits are gained from other services associated with the sale of fuel, ie; convenience stores. But can you tell me the last time that someone that is in business sold a product that they did not profit from? It just don’t happen.

While oil prices are considerably higher than a year ago, they are still roughly $14 from exceeding the inflation-adjusted peak of the 1980 shock, when prices were over $90 a barrel in today’s prices. In the United States gasoline prices reached an all-time high during the first week of September 2005 in the aftermath of Hurricane Katrina which was another example of the oil companies using a Lemming scenario to raise prices. The average retail price was nearly $3.04 per gallon. The previous high was $2.38 per gallon in March 1981, which would be $3.20 per gallon after adjustment for inflation.

So how can we combat this rape of our financial stability? Well some have started doing it already. Every day I see more and more people that, as little as ten years ago, would have never given it a thought now riding motorcycles. I see more even more people opting for smaller cars or hybrids. I’ve noticed more bicyclists and walkers. I see more people using alternative fuels such as ethanol. But it is still not enough!

The oil companies will try to tell you that prices are high due to demand but in no other business is that logic sound nor accepted. When more people purchase a product the price usually reduces reflecting a savings to the general public. It is only when a product is in short supply that the price increases. If you think we have an oil shortage then you have believed the lies that you have been told and may be beyond all hope. But if you are an intelligent human being and can think for yourself then I urge you to stand up and continue to demand accountability for the crimes that have been committed against the American people by the oil companies with the assistance of the current administration in Washington. Keep using alternative fuels, keep walking, keep driving more fuel efficient vehicles and keep your voice heard. Refuse to accept a few trinkets as compensation for the wrongs that you have endured. Because as sure as day follows night the next crisis is around the corner and the next excuse to raise fuel prices lurks just beyond the horizon.

"The elected official works for the people! You do not make promises to your boss which are beyond your power to keep and expect to hold your position."

-Jim George- Democratic Candidate, Kansas State House of Representatives District #12