Business Plan Oil Station

How do you like my gas relief proposal?

Instead of a tax holiday, here’s my proposal.
The oil companies would come together and institute a summertime gas price relief plan, sort of a “profit holiday”. Instead of lowering the price at the pump, consumers would save receipts and send them in with a form to a central clearing house (they already exist for other businesses) and they would get a rebate on their purchases. The oil companies don’t make that much per gallon (I’ve heard 8 to 12 cents per gallon) so amounts would not be huge but it would help. It would not lower the price at the pump so we don’t have to worry about station gouging and a lower price does not encourage people to increase consumption. It would give oil companies an enormous image improvement when they need it the most without hurting their bottom line too much. It would get Congress off their back and educate the populace about how much per gallon these companies really make.
Sorry – out of space. I look forward to your comments

Tim, I don’t know enough about gas profits to really defend what I’m thinking, but the gas companies recorded record profits. Instead of making so many cents per gallon, my guess is that it’s a percentage. This would explain their record profits as gas prices rise, i.e., as the cost goes up, their percentage stays the same but the prices are higher so they make more money. Like sales people who get a commission.

I think your idea is good, but I also think that gas companies might be a little scared – so they’re snapping up the profits while they can get them. I know what everyone says the causes are for increased prices in fuel – mostly global demand. But, in the back of my mind I’m always thinking about all the hybrids that we see now and wondering how much that’s costing them. Just heard that SUV’s are soon going to be old news. GWB was unsuccessful in his talks with Saudis to increase oil production. Everyone’s grabbing what they can get now because they see the changes coming. Those wind turbines we see popping up on the landscape. Solar panels. Hybrid cars. And Obama wants to put $150 billion into developing green energy and alternative fuels. We are edging closer to getting free of fossil fuels – maybe in the next 25 years. So, I don’t see them giving up any profits.

I think it’s funny that Hillary thinks she’s going to take on OPEC. Does she know how Arabs feel about women? They wouldn’t listen to her – much less negotiate with her.

My view on all of this is that we need to do whatever is necessary to get free of fossil fuels. If it means that the economy tanks for awhile during the changeover to other things, so be it. The sooner the better. The way I see it, fossil fuel is like heroin to our economy.

Energy Minister continues to back Coega refinery project

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