Let's put aside, for now, the absurd idea that government has any business deciding what is and is not an appropriate profit of a private business and instead look at what those profits actually are:
From CA.gov's Energy Almanac, here is the breakdown of the cost of a gallon of gas:
Branded | ||||||||||
Distribution Costs, Marketing Costs and Profits | Crude Oil Costs | Refinery Cost and Profit | State Underground Storage Tank Fee | State and Local Tax | State Excise Tax | Federal Excise Tax | Retail Price | |||
Jan 16 | $0.20 | $2.65 | $0.21 | $0.02 | $0.08 | $0.36 | $0.18 | $3.70 | ||
Jan 09 | $0.21 | $2.64 | $0.22 | $0.02 | $0.08 | $0.36 | $0.18 | $3.71 | ||
Jan 02 | $0.19 | $2.62 | $0.19 | $0.02 | $0.08 | $0.36 | $0.18 | $3.64 |
Hmmm, let's see, they bundle profits in with distribution, marketing and refinery costs, but out of the total of $3.70, at most 41 cents is profit, if distribution, marketing and refinery costs are 0, but more likely south of 20 cents. Out of $3.70 sale price, that is about 6%. As a comparison, Apple's profit margin is on the order of 40%. On the other hand state, local and federal taxes add up to 62 cents. So various government entities make more than 3x what the oil and refinery companies do. And there is also no legislation pending to punish evil Apple for reaping such huge profits.
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