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They are saying there is no money in the retail business, by comparison to wholesale. Their big bucks are made selling wholesale at high prices with a consistent and significant profit margin.
They are saying there is no money in the retail business, by comparison to wholesale. Their big bucks are made selling wholesale at high prices with a consistent and significant profit margin.
The Perception is they are railing us at the pump which is not accurate and the Government has to step in to "even the score".
There's never been money in selling gas- especially in NJ, where you've got to pay an attendant to pump it. The money is made by drawing people in to either buy stuff in the convenience store, or to get service work done in the attached service bays. When was the last time you saw a gas station being built that didn't have at least some kind of ancillary services? The ones that currently exist are few and far between.
The Perception is they are railing us at the pump which is not accurate and the Government has to step in to "even the score".
You're right, they aren't railing us at the pump - they are raping our wallets long before it gets there. The drillers and wholesalers are raking it in, through the combination of a weak dollar and inflated costs being set by OPEC.
That said, a windfall tax never benefits the consumer, its an asinine thought. But don't equate low profits at the pump to low profits in oil, because it isn't the same thing. We are being taken advantage of by the big oil companies.
They are saying there is no money in the retail business, by comparison to wholesale. Their big bucks are made selling wholesale at high prices with a consistent and significant profit margin.
gee sherlock if that were true why are they walking away from it? the truth is the money is made by exploration and exploitation of new finds. between the government and the enviro whackos refining and selling fuel isn't as easy or profitable as it once was
gee sherlock if that were true why are they walking away from it? the truth is the money is made by exploration and exploitation of new finds. between the government and the enviro whackos refining and selling fuel isn't as easy or profitable as it once was
They aren't walking away from wholesale; perhaps if you learned the basics behind reading and comprehension you might one day have a point. You lose, but thanks for playing.
"For instance, in 2004 Exxon Mobil earned more money -- $25.33 billion -- than any other company on the Fortune 500 list of largest corporations. But by another measure of profitability, gross profit margin, it ranked No. 127."
I saw an article a few months ago (which I cant find now) but if I recall, the industry average was about 9.5% for the oil companies. If the government wants to step in and say "Sorry Mr. Business Owner, you cant earn a margin of 9.5% on your product, thats too much." then we have some more serious issues to come because they have NO business stepping in like that. The chart I saw showed that even water companies had higher profit margins than the oil industry. People are just mad because the oil companies make a ton of money off of something that they require in their daily life.
I would say the major cause are the people who continue to waste gas. If I didnt see it with my own two eyes, I never would have believed it, but I saw a woman today parked at the end of her driveway (a long winding one...probably about 300 feet long) in her SUV "dropping off" her daughter at the bus stop. The bus stopped in front of the driveway, the girl jumped out and into the bus, and the mother pulled back up the driveway. Im sure the truck was probably running with the air on too. Extreme...but true...now think about the number of SUVs and other cars that are regularly doing 20-30MPH over the speed limit, or just idling with the air on. Nobody cares to say it, especially not in an election year, but the cause of the probelm is YOU, NJ and America. Stop being lazy and wasteful.
And let me also add, part of the problem is China and India...their use of oil is HUGE and growing all the time, putting a huge strain on the supply.
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