From John Stossel's Take:
Bill O'Reilly was on the warpath last week about record-high oil prices. He says collusion among greedy oil companies is a big factor, and he bet me $1,000 that the gas stations in his town charged the "exact same price," which he says is evidence that they collude.
I checked his town's prices, and he's wrong. I win $1,000! Here were the prices this afternoon:
Gulf: $3.95... Getty: $3.99... Shell: $4.05... Mobil: $4.07.
If oil companies collude, they're not very good at it: The average gas station had a profit margin of $0.05 per gallon last year. Oil wholesalers also have thin profit margins - Exxon's most recent margin was one-third of a cent per gallon.
The government is far more effective at taking your money. Where O'Reilly and I live, in New York, taxes are $0.65 per gallon. Here's a map for all the states.
Why don't gas stations take a bigger cut?
Read full article...
More on gas prices:
Gov't stupidity: You won't believe what Nancy Pelosi is saying now
What the "mind-boggling" declines in gasoline sales could be telling us
Gasoline usage may be falling... But prices could be starting an unprecedented rise