Unsurprisingly, given the outrageously high cost of gas and the Left's penchant for pointing the fickle finger of blame at big corporations, we've heard a lot about how big oil is gouging consumers.The video below epitomizes the untruths spread by Democrats.
However, when you take a look at the actual numbers in California, for example, you find that the "Distribution Costs, Marketing Costs and Profits" for the oil companies make up only 8 cents per gallon of gas.
That doesn't sound like gouging, does it? But if you believe it does, what would you say about the 70 cents per gallon in taxes that's paid by California consumers? Additionally, as Karl Rove has pointed out,
(Oil companies) make about 8.3 cents in gross profit per dollar of sales....Electronics make 14.5 cents per dollar and computer equipment makers take in 13.7 cents per dollar, according to the Census Bureau. Microsoft's margin is 27.5 cents per dollar of sales.
Sure, these oil companies are huge and therefore, even an 8.3% profit adds up to billions of dollars, but when you look at the relatively small percentage that they're putting in their pockets as compared to the humongous share that the government is raking in, it's pretty clear that it's the government, not the oil companies, that is gouging consumers.