ExxonMobil earned about 5.5 cents per gallon while taxes were about 30-60 cents per gallon

The Rio Norte Line

Is there a point where the taxes and fees levied upon an industry become so expensive, so high, so onerous, that the producers decide to just stop?

The “gasoline shortages” of the 1970’s were caused by “price controls” which made it illegal for the energy companies to sell gasoline/petroleum above a certain price.  When the cost to provide the gasoline rose above the arbitrarily set legal price, then the energy companies stopped selling gasoline.  The energy “shortage” and gas lines were caused by the benevolent federal government, with all their elite and learned economists, setting “price controls”.  When the costs rose above the arbitrary limit at which gasoline could be sold, then “man-made” shortages occurred.  (Utah, please correct me or expound where helpful with this over-simplified explanation.)

From ExxonMobil:

In last week’s post about ExxonMobil’s 2013 earnings, I noted that we earned about 5.5 cents for every gallon…

View original post 345 more words

2 thoughts on “ExxonMobil earned about 5.5 cents per gallon while taxes were about 30-60 cents per gallon

  1. Yes.
    The bigger question, quite honestly, is “is there a point when the costs to even enter INTO the marketplace are so high and onerous that producers don’t even bother to enter into the market in the first place?”

    And you know the answer to THAT one, too…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s