Madison wrote:wrveres wrote:i dont know where you are getting this figure. it has routinely been reported that their profit margin is somewhere around 9%.
JT posted it on page 39:StlSluggers wrote:"For every gallon of gasoline and other products we refined and sold in the United States, we earned about 7 cents," said a statement from Exxon vice president Ken Cohen. "Compare that to the 40 to 60 cents per cents per gallon that went to the government (state and federal) in gasoline taxes."
They played the "poor little us" card and used a number far too small to be believeable, while recording near record profits, and tried to shift the blame on the government. Sad.
And of course it's a percentage. At 7 cents a gallon, we'd have had to start using an incredibly larger amount of gas for them to hit that $11 billion. Roughly double the gas we've been using, and that didn't happen. So yes, of course they make a much larger percentage than 1.75. That's what I've been saying.
Oil companies sell more than just gasoline. Oil goes into a lot of things.
And to calculate their margin, you'd have to know their cost. The cost to the oil companies is not the cost you pay at the pump, because that includes taxes and the cut for the station (and maybe more, I don't know). Assuming wr's 9% is right, and their $0.07 figure is correct, then their cost per gallon is $0.78(ish). I've never heard 9%, myself. I've always heard that the gasoline industry was an extraordinarily low margin field, in the neighborhood of 3%. If that's correct, their cost per gallon is $2.33(ish), which fits fairly well with today's gas prices.
That's all off-the-cuff and based on nothing more than my recollection, so take that for what it is.