The Attorneys-General of North and South Carolina are investigating thousands of charges of price-gouging on the part of gasoline stations in the area.
North Carolina Attorney-General Roy Cooper has already sent subpoenas to dozens of gas stations in western North Carolina alone concerning customer complaints of outrageously unnecessary price increases at the pump.
Henry McMaster, South Carolina's Attorney-General stated on Monday that there appears to be some price-gouging by certain gasoline vendors but that his investigations would need to be completed before any formal charges would ensue.
McMaster stated that he has requested records from the accused vendors which should show that the price they paid for gasoline is reflected in the price at the pump. The mere fact that gasoline is higher, he said, is no indication that the station engaged in price gouging.
Price-gouging is a term that refers to a business that charges customers significantly higher prices than the prices the business paid for the commodity, taking advantage of consumers particularly during emergencies such as the recent hurricane.
In both North and South Carolina, a business that is convicted of price gouging faces a fine of $2000 per customer that was impacted by the gouging. Such fines can easily run into the hundreds of thousands of dollars for a single business, effectively bankrupting that business.
Showing posts with label price gouging. Show all posts
Showing posts with label price gouging. Show all posts
Tuesday, September 16, 2008
Monday, September 15, 2008
This Time There IS Price-Gouging Post-Hurricane
As regular readers of this blog know, I have been a staunch defender of the right of oil companies to make a good profit, without government interference, for their shareholders.
The American people, a majority of whom are invested in oil companies through their various pension programs, also deserve to get a good return on their investment as they face retirement.
On the strength of oil company profits, our pension programs have been prevented from going broke in the wake of the poor performance of many other industries.
That being said, price-gouging is wrong, period. And many local gasoline vendors in the Southeast and the Deep South are guilty of it following Hurricane Ike.
As we have mentioned many times, the price of gasoline at the pump is largely determined by 'oil futures.' On the open market, the price of oil is determined by what investors, or 'oil speculators,' think the price of oil will be in the future.
The oil companies have stated over the weekend that there was no major disruption of oil production in the Gulf due to Hurricane Ike. They experienced a one-day shut-down at most, along with minimal damage.
Oil speculators have determined that the price of oil will be the lowest in over a year, with the price of crude dropping to just below 100 bucks per barrel--down over 20 bucks a barrel from just a few weeks ago.
Thus, there is no good reason for gasoline prices at the pump currently standing at 4 bucks per gallon and higher in the Southeast. Some have even sold gasoline for $5.60 per gallon.
With crude going for the cheapest prices we've seen in over a year, and with oil speculators bidding downward on the value of oil, we should be paying the lowest prices at the pump since the summer of 2007.
Unless the oil companies and their vendors on the local level bring this about, then the patience of the American people will run out, even among their fiercest defenders, such as myself.
Price-gouging is a despicable practice, and appearances mean everything. If the oil companies fail to act in good faith in response to market forces that are driving the price of oil DOWNWARD, then the American people will most definitely lose faith in the oil industry.
The time is NOW for gasoline prices to plummet if the oil industry expects to salvage what's left of its tentative reputation.
The American people, a majority of whom are invested in oil companies through their various pension programs, also deserve to get a good return on their investment as they face retirement.
On the strength of oil company profits, our pension programs have been prevented from going broke in the wake of the poor performance of many other industries.
That being said, price-gouging is wrong, period. And many local gasoline vendors in the Southeast and the Deep South are guilty of it following Hurricane Ike.
As we have mentioned many times, the price of gasoline at the pump is largely determined by 'oil futures.' On the open market, the price of oil is determined by what investors, or 'oil speculators,' think the price of oil will be in the future.
The oil companies have stated over the weekend that there was no major disruption of oil production in the Gulf due to Hurricane Ike. They experienced a one-day shut-down at most, along with minimal damage.
Oil speculators have determined that the price of oil will be the lowest in over a year, with the price of crude dropping to just below 100 bucks per barrel--down over 20 bucks a barrel from just a few weeks ago.
Thus, there is no good reason for gasoline prices at the pump currently standing at 4 bucks per gallon and higher in the Southeast. Some have even sold gasoline for $5.60 per gallon.
With crude going for the cheapest prices we've seen in over a year, and with oil speculators bidding downward on the value of oil, we should be paying the lowest prices at the pump since the summer of 2007.
Unless the oil companies and their vendors on the local level bring this about, then the patience of the American people will run out, even among their fiercest defenders, such as myself.
Price-gouging is a despicable practice, and appearances mean everything. If the oil companies fail to act in good faith in response to market forces that are driving the price of oil DOWNWARD, then the American people will most definitely lose faith in the oil industry.
The time is NOW for gasoline prices to plummet if the oil industry expects to salvage what's left of its tentative reputation.
Friday, May 18, 2007
Hillary, Pelosi Lying About Gas Price-Gouging
Washington, DC (TLS). Two of Washington's premier Socialists, Senator Hillary Clinton and Speaker Nancy Pelosi, have been decrying so-called 'price-gouging' by the big oil companies.
First, it was Hillary with her now-infamous line from her stump speech concerning oil company profits--'We are going to take that money and put it in a fund for the development of alternative forms of energy.'
Spoken like a true Socialist.
Now it is Nancy Pelosi's condemnation of the oil companies this week, reacting to a new national average price of $3.07 per gallon of gas.
Pelosi was incensed by the fact that in her home district of San Francisco, the highest price of gasoline stood at $3.49 per gallon. Thus, she introduced a bill in the House, H.R. 1252, to 'protect consumers from price-gouging.'
Time for a reality check, Ms. Clinton and Ms. Pelosi.
When adjusted for inflation over a 25-year period, the national average for a gallon of gas is actually LOWER today than it was in 1981, just as Jimmy Carter was leaving the White House.
In addition, apparently consumers need protection from GOVERNMENT price gouging rather than gouging by the oil companies!
If anyone would bother to check the actual figures, one would find that the big oil companies make roughly 13 cents per gallon on the gasoline that is sold in America. Out of an average price of $3.07 per gallon, the big oil companies themselves gain a profit of just 13 CENTS PER GALLON.
Would anyone like to guess what THE GOVERNMENT makes on a gallon of gas?
Remember, a huge chunk of what you and I pay at the pump is for TAXES, both state and federal. Thus, for each gallon of gas sold, the federal government makes 18.4 cents per gallon. That is 5.4 cents per gallon higher than what those 'price-gouging' oil companies make!
On top of that, in the state of California, 40.2 cents per gallon goes to the state government. In other words, the state of California makes THREE TIMES the amount of profit the oil companies get from a gallon of gas.
And we are not through yet. Let's look at Pelosi's district alone, shall we? In the San Francisco Congressional district, which Pelosi represents, consumers pay a LOCAL tax on top of the state and federal tax. San Francisco residents pay another 8.2% in local sales taxes for their gasoline.
Thus, for every gallon of gasoline you purchase, you are going to pay at least 58.6 cents per gallon in federal and state taxes, plus 8.2% of the total for your local taxes.
For one gallon of gas, the government gets 58.6 cents plus 8.2% as compared to the 13 cents in profit that goes to the oil companies.
So who is actually doing the gouging here?
This is why I say that Hillary Clinton and Nancy Pelosi are lying, deliberately attempting to deceive the American people.
Let's do the math in a hypothetical situation. Let's say you pull up to the pump in San Francisco in your eco-friendly hybrid, and it so happens you have found one lone gas station selling gasoline at the national average of 3.07 per gallon. Let's say you purchase ten gallons of gas for the total price of $30.70.
Out of that total price of $30.70, the oil companies make a whopping $1.30 in profit. ONE DOLLAR AND THIRTY CENTS out of your tank of gas.
The federal government makes $1.84 in federal taxes...54 cents higher than the 'profit' the oil companies make.
As for the state of California, out of your $30.70 purchase, the state government will get $4.02. Don't let this one escape your attention. The oil companies make one dollar and thirty cents' profit out of your purchase, but the state of California makes FOUR DOLLARS AND TWO CENTS.
We're still not finished yet. We still have to add two dollars and forty-eight cents for the 8.2% local sales tax for San Francisco.
Thus, out of your purchase of $30.70 in gasoline, you will pay $8.34 in federal, state, and local sales taxes. Yet you have paid the big oil companies a mere $1.30 out of your purchase.
And this brings us back to the central point. Why would Hillary Clinton and Nancy Pelosi lie to the American public about so-called 'price gouging' by the big oil companies? In fact, they really do have a great amount of gall to suggest such a thing when the government will get over SIX TIMES that amount per gallon of gas sold.
Naturally, neither Clinton nor Pelosi would view such a thing as highway robbery. As long as the government does it, it is automatically for the 'greater good.' But the minute you let a corporation make a profit--and a tiny one at that--then that company is automatically a price-gouging, evil, corrupt, and malevolent example of capitalism.
Do you want to pay lower prices at the gas pump? Well, you are targeting the wrong people if you strike out at the oil companies. Get these gasoline taxes either lowered or eliminated, and you will automatically save 8 bucks per tank (10 gallons) in the state of California.
If you drive a large vehicle you will save about 16 bucks per tank.
Thus, when you feel the pain at the pump, be sure to remember just what is the biggest source of that pain--the government and not the oil companies.
First, it was Hillary with her now-infamous line from her stump speech concerning oil company profits--'We are going to take that money and put it in a fund for the development of alternative forms of energy.'
Spoken like a true Socialist.
Now it is Nancy Pelosi's condemnation of the oil companies this week, reacting to a new national average price of $3.07 per gallon of gas.
Pelosi was incensed by the fact that in her home district of San Francisco, the highest price of gasoline stood at $3.49 per gallon. Thus, she introduced a bill in the House, H.R. 1252, to 'protect consumers from price-gouging.'
Time for a reality check, Ms. Clinton and Ms. Pelosi.
When adjusted for inflation over a 25-year period, the national average for a gallon of gas is actually LOWER today than it was in 1981, just as Jimmy Carter was leaving the White House.
In addition, apparently consumers need protection from GOVERNMENT price gouging rather than gouging by the oil companies!
If anyone would bother to check the actual figures, one would find that the big oil companies make roughly 13 cents per gallon on the gasoline that is sold in America. Out of an average price of $3.07 per gallon, the big oil companies themselves gain a profit of just 13 CENTS PER GALLON.
Would anyone like to guess what THE GOVERNMENT makes on a gallon of gas?
Remember, a huge chunk of what you and I pay at the pump is for TAXES, both state and federal. Thus, for each gallon of gas sold, the federal government makes 18.4 cents per gallon. That is 5.4 cents per gallon higher than what those 'price-gouging' oil companies make!
On top of that, in the state of California, 40.2 cents per gallon goes to the state government. In other words, the state of California makes THREE TIMES the amount of profit the oil companies get from a gallon of gas.
And we are not through yet. Let's look at Pelosi's district alone, shall we? In the San Francisco Congressional district, which Pelosi represents, consumers pay a LOCAL tax on top of the state and federal tax. San Francisco residents pay another 8.2% in local sales taxes for their gasoline.
Thus, for every gallon of gasoline you purchase, you are going to pay at least 58.6 cents per gallon in federal and state taxes, plus 8.2% of the total for your local taxes.
For one gallon of gas, the government gets 58.6 cents plus 8.2% as compared to the 13 cents in profit that goes to the oil companies.
So who is actually doing the gouging here?
This is why I say that Hillary Clinton and Nancy Pelosi are lying, deliberately attempting to deceive the American people.
Let's do the math in a hypothetical situation. Let's say you pull up to the pump in San Francisco in your eco-friendly hybrid, and it so happens you have found one lone gas station selling gasoline at the national average of 3.07 per gallon. Let's say you purchase ten gallons of gas for the total price of $30.70.
Out of that total price of $30.70, the oil companies make a whopping $1.30 in profit. ONE DOLLAR AND THIRTY CENTS out of your tank of gas.
The federal government makes $1.84 in federal taxes...54 cents higher than the 'profit' the oil companies make.
As for the state of California, out of your $30.70 purchase, the state government will get $4.02. Don't let this one escape your attention. The oil companies make one dollar and thirty cents' profit out of your purchase, but the state of California makes FOUR DOLLARS AND TWO CENTS.
We're still not finished yet. We still have to add two dollars and forty-eight cents for the 8.2% local sales tax for San Francisco.
Thus, out of your purchase of $30.70 in gasoline, you will pay $8.34 in federal, state, and local sales taxes. Yet you have paid the big oil companies a mere $1.30 out of your purchase.
And this brings us back to the central point. Why would Hillary Clinton and Nancy Pelosi lie to the American public about so-called 'price gouging' by the big oil companies? In fact, they really do have a great amount of gall to suggest such a thing when the government will get over SIX TIMES that amount per gallon of gas sold.
Naturally, neither Clinton nor Pelosi would view such a thing as highway robbery. As long as the government does it, it is automatically for the 'greater good.' But the minute you let a corporation make a profit--and a tiny one at that--then that company is automatically a price-gouging, evil, corrupt, and malevolent example of capitalism.
Do you want to pay lower prices at the gas pump? Well, you are targeting the wrong people if you strike out at the oil companies. Get these gasoline taxes either lowered or eliminated, and you will automatically save 8 bucks per tank (10 gallons) in the state of California.
If you drive a large vehicle you will save about 16 bucks per tank.
Thus, when you feel the pain at the pump, be sure to remember just what is the biggest source of that pain--the government and not the oil companies.
Subscribe to:
Posts (Atom)