The gas price ad Obama doesn’t want you to see

posted at 11:50 am on March 30, 2012 by Rob Bluey

President Obama knows the rising price of gasoline — averaging $3.92 per gallon nationwide for regular unleaded — is a huge vulnerability. It prompted his recent energy tour and a White House press conference yesterday.

It also explains why the Democratic National Committee reacted so franticly to a new 30-second ad called “Nine Dollar Gas” from the American Energy Alliance. The group is spending $3.6 million to air the spot in eight states: Florida, Colorado, Iowa, Michigan, Nevada, New Mexico, Ohio and Virginia.

Shortly after the American Energy Alliance announced plans to run the ad starting Friday, the DNC dispatched Chairwoman Debbie Wasserman Schultz to disparage the organization and launch a personal attack on its president. (Here’s the audio of the DNC press call.)

“The American Energy Alliance is a front group for Big Oil, plain and simple. It is an offshoot of the Institute for Energy Research, which is funded by the Koch brothers and other Big Oil companies. The President of the American Energy Alliance is a former Koch Lobbyist. There is no daylight between the Koch Brothers and the American Energy Alliance, only millions of dollars in Big Oil cash.”

That was enough for POLITICO to declare: “Kochs linked to $3.6M anti-Obama gas price ad.” The shock and horror!

Unfortunately for Wasserman Schultz and POLITICO, it’s not accurate. ”This ad was not funded by the Koch organizations,” spokesman Benjamin Cole told CBS News. “It is a lie to suggest otherwise.”

That didn’t dissuade the DNC from releasing its own ad criticizing the American Energy Alliance, an attack-the-messenger strategy that mirrors the Obama campaign’s recent ad trashing Americans for Prosperity.

But while Wasserman Schultz and the DNC were busy attacking the organization and attempting to tie Mitt Romney to the group, they failed to rebut the facts presented in the ad. The American Energy Alliance released a two-page fact sheet backing up each statement featured in its commercial.

Among the charges against Obama: gas prices have doubled during his presidency, he opposed drilling in ANWR, channeled taxpayer dollars to politically connected Solyndra, rejected the Keystone XL pipeline, and picked an energy secretary who supports European prices for gasoline (topping $9 in some countries).

Even before the ad hits the airwaves today, there’s already an indication that the DNC’s aggressive attack on the American Energy Alliance could backfire. The group is getting more attention and media coverage because of Wasserman Schultz’s criticism than it would have otherwise. That could very well mobilize more donors who are frustrated with Obama’s energy policies.


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Every time a liberal says the words Kock Brothers an ACORN worker get his wings.

angryed on March 30, 2012 at 12:01 PM

Nice. Although I thought it was “another slut gets her free contraception.”

TexasDan on March 30, 2012 at 1:03 PM

Don’t you wish these people would spend as much time and energy actually trying to help fix the economy as they do freaking out and slandering everyone who criticizes the Dear Leader?

rockmom on March 30, 2012 at 1:04 PM

High gas prices are a result of exploding 3rd world demand…

ernesto on March 30, 2012 at 12:53 PM

People keep saying this, but then you only get crickets when you ask about increasing supply to at least keep up with demand.

Maybe you don’t reverse the rise in gas prices, but you at least stop it.

BadgerHawk on March 30, 2012 at 1:05 PM

ernesto on March 30, 2012 at 12:53 PM

So… you are saying that Obama lied when he blamed Bush for high gas prices.

ghostwalker1 on March 30, 2012 at 1:03 PM

Waiting…

ghostwalker1 on March 30, 2012 at 1:08 PM

ernesto on March 30, 2012 at 12:53 PM

It could also be said high prices are the result of a contracting supply brought about by underdevelopment of existing reserves and refinery’s. If you follow the rise in price in conjuncture with ME instability, then a valid point can be made. The next logical question would then be why is there so much instability in the mideast? What could be done to stabilize it? Pressure on prices is in fact not helped with rejecting know sources,i.e. Keystone. The upside to further exploration and procurement of in ground crude is natural gas. Not enough being done on that front. The President does in fact hold enormous sway over prices through policy and posture. Neither of which have been very good with the current occupant. More refinement capacity, hence greater exporting ability, more procurement of raw material, and a clearer policy pertaining to the ME would be very helpful. Have you ever noticed the government makes big dough with taxes on pump prices? Would the government be willing to lower taxes to achieve lower prices? Anyway you look at it we are not doing the things that are in our best interest. Yes the President gets to take the heat on this, and fairly so.

Bmore on March 30, 2012 at 1:10 PM

High gas prices are a result of exploding 3rd world demand, political instability in the middle east, and the rising cost of exploiting even proven reserves. The president has one tool at his disposal with which he can attack this issue: opening up federal land. The problem here is that this oil will still be more expensive to obtain, 3rd world demand will still continue to increase, and Israel may very well cause a global disruption to oil markets. Thus, there really is little the President, any President, can do in this situation. Notice, not a single republican will vow to a) lower gas prices or b) lower unemployment. Not a single one will come out and promise to bring prices or the unemployment rate down. That is because they know they cannot, and while it is politically useful to blame it on the current President, they know that in the same position they would be equally helpless.

ernesto on March 30, 2012 at 12:53 PM

A. Love how recovering oil from proven reserves is “exploiting”.

B. So, the President could open up more federal lands anyway to help increase supply, but chooses not to. Any increase in supply can help negate or slow the rise of oil prices.

C. Newt Gingrich has promised to lower gas prices and all the candidates have promised to enact policies to lower unemployment.

Bitter Clinger on March 30, 2012 at 1:11 PM

and Israel may very well cause a global disruption to oil markets.

ernesto on March 30, 2012 at 12:53 PM

Wow. So much can be gleamed from that little tidbit.

MNHawk on March 30, 2012 at 1:11 PM

and Israel may very well cause a global disruption to oil markets.

ernesto on March 30, 2012 at 12:53 PM

Wow. So much can be gleamed from that little tidbit.

MNHawk on March 30, 2012 at 1:11 PM

Wow, I missed that. I think I subliminally read “Iran”.

Bitter Clinger on March 30, 2012 at 1:13 PM

But while Wasserman Schultz and the DNC were busy attacking the organization and attempting to tie Mitt Romney to the group,

If only that were true, I’d probably vote for the trash and burn man. But Romney only destroys other Republicans, so no hard-ball during the general. Romney says the socialist-in-chief is nice but “in over his head”, when all evidence indicates that Obama is achieving more than even he could dream of. Destruction of the US is well on its way and Romney thinks destroying Newt and the Rick’s and Sarah will save the country from a bumbling nice guy.

If only….

Portia46 on March 30, 2012 at 1:14 PM

Every time a liberal says the words Kock Brothers an ACORN worker get his wings.

angryed on March 30, 2012 at 12:01 PM

+10

Portia46 on March 30, 2012 at 1:16 PM

ITguy on March 30, 2012 at 12:00 PM

Just going to go out on a limb here and suggest that the recession may have had something to do with falling oil/gas prices in late 2008 also.

BadgerHawk on March 30, 2012 at 12:35 PM

Please show me the correlation between recession and gas prices.

ITguy on March 30, 2012 at 1:17 PM

Excellent debunking of Obama’s mind-numbingly bad gas price speech here from IBD.

Buy Danish on March 30, 2012 at 1:17 PM

Global warming/earth worship is the liberal religion. It all makes sense after one realizes that.

scotash on March 30, 2012 at 1:17 PM

A good way to piss liberals off is to quote themselves back at themselves.

Of course, then they use their favorite debate tactic- attack the person quoting them!

As if who is pointing out their own actions and words makes any difference.

Child: “The Emperor has no clothes on!”

Liberals: “That child gets his allowance from Big Oil and the Koch brothers!!”

Media: “This just in: a child is under investigation today under allegations of accepting money from people who, some say, are rather evil. In other news, the Emperor stepped out in fine fashion this afternoon…”

Book on March 30, 2012 at 1:20 PM

Gosh, it’s not “fair” that we use 20% of the world’s oil but only produce 2% of world’s oil. So in the name of collective “fairness” we will all have to reduce our energy consumption to 10% of current levels; emkay?

Mr Galt on March 30, 2012 at 1:22 PM

Romney says the president is not responsible for high gas prices.

That I agree with

liberal4life on March 30, 2012 at 11:56 AM

Gnat-brain. ALL presidents are not that responsible for the economy or the gasoline prices, incl. GWB and Obama.

Obama, as all others will get the BLAME.

Internalize this, if you can utilize your meager thinking abilities.

Schadenfreude on March 30, 2012 at 1:27 PM

ernesto on March 30, 2012 at 12:53 PM

Flawed analysis and some lies in it too.

Schadenfreude on March 30, 2012 at 1:31 PM

Zero just banned Atlantic oil drilling for five years.

Every time he pulls something stupid like this he drives up the price of gas. He is immediately and DIRECTLY responsible for the price of energy, specifically gas by way of his policies.

dogsoldier on March 30, 2012 at 1:38 PM

I then after seeing liberal after liberal explaining in graphic detail that the president has nothing to do with the market forces which decide high gas prices..

see those same liberals lie down and apologize for the screaming hysteria they engaged in when blaming Bush for high gas prices in 08.

“crickets”………………………….

Thought so.. if they weren’t the worst kind of hypocrites, they wouldn’t already be liberals.

Can’t wait to go fuel up so I can hear a liberal snarl at someone complaining about the prices.. and they do,.. always waiting for a comment in someone elses conversation so they can jump in to defend the faith..

Liberals made this bed, they can damn well sleep in it.

mark81150 on March 30, 2012 at 1:39 PM

A true “All of the above” energy policy would open up ANWR, oil shale, the Keystone pipeline, new refineries, etc., and gas prices would again drop by more than 50%.

ITguy on March 30, 2012 at 12:00 PM

May I also add that Bush eliminated the 34 formulations of Gas that were making it impossible to effectively serve the Market. he reduced them to 8, I think. This had a huge effect of clearing the delivery system and getting gas to the pumps. One of the first acts Treyvon’s father did was by executive order bring us back to 34.

This is hardly mentioned, but another piece of O’holes war on gas. After all, O’hole is comfortable with $4.00 a gallon, just that he wanted it to go up more slowly.

Bulletchaser on March 30, 2012 at 1:40 PM

ITguy on March 30, 2012 at 1:17 PM

You used too small a sample size (July-December) to illustrate your point, and didn’t mention a recession which led to a roughly 70% drop in the price of oil. It’s sloppy and simplistic.

Also, you first link goes to a 10 year chart of the employment-populaton ratio. Why would that ever correlate with the cost of gasoline? Again, sloppy reasoning.

BadgerHawk on March 30, 2012 at 1:40 PM

Chu is smart. He doesn’t own a car. He rides his bike to work.

shick on March 30, 2012 at 1:41 PM

Here’s something that correlates a little better to the massive drop in gas prices.

BadgerHawk on March 30, 2012 at 1:45 PM

Chu is smart. He doesn’t own a car. He rides his bike to work.

shick on March 30, 2012 at 1:41 PM

Before you lose yourself.

Schadenfreude on March 30, 2012 at 1:47 PM

This Koch thing is all a tactic.

It’s to dilute the attention the right justly puts on Soros’ activities.

Ben Hur on March 30, 2012 at 1:48 PM

Found It!!

However, heterogeneous regulation may increase the costs of production, as firms
must produce, transport and sell gasoline meeting more stringent regulations. In
particular, heterogenous regulation of gasoline content forces refineries to produce blends
of gasoline meeting a variety of stringent content specifications. Producers must then
transport and store the gasoline blends without intermixing them with other gasoline
formulations. In addition to the costs of production specifically related to the stringency
of the environmental regulations to which the gasoline conforms, increasing the number
of gasoline blends may increase transportation and storage costs, leading to higher prices
nationally. Furthermore, to the extent that costs associated with producing gasoline
meeting local regulations increases gasoline prices in areas with stringent content
regulations, price differences in neighboring regions affects the efficacy of the
environmental regulations.

Source

Bulletchaser on March 30, 2012 at 1:49 PM

BadgerHawk,
You claim that a recession led to a roughly 70% drop in the price of oil.

I claim that it was not a recession that caused this drop in oil and gas prices. Rather, it was the President and Congress removing significant restrictions on drilling for oil. The perception of greater future supply drove down the speculation over future prices, which has an influence on the price we actually pay at the pump.

The purpose of the employment-populaton ratio graph is to show that the Bush recovery (which really started to kick in with the passing of the 2nd part of the Bush Tax Cuts in 2003) came to an end when Democrats took over both houses of Congress in January 2007, and the recession continued to worsen throughout 2007, 2008, and into 2009. Once we bottomed out, there has been no real recovery.

I could understand if you said that recession = higher unemployment (and a lower employment/population ratio) = less people driving to work = less consumption = lower prices due to lower demand.

But if that were the reason for the fall in gas prices, then prices would have remained low during this recession.

There is no correlation to demonstrate your claim. There is no correlation between the recession and gas prices.

The correlation is between U.S. Government energy policies and gas prices. When Bush and the Congress opened up more areas to drilling, the perception was that future supply would be greater. And greater supply = lower prices.

As soon as Obama took office, he went to work reversing those policy changes. He put more restrictions on drilling. Hence, the perception is that future supply will be lower. And lower supply = higher prices.

ITguy on March 30, 2012 at 1:54 PM

Here’s something that correlates a little better to the massive drop in gas prices.

BadgerHawk on March 30, 2012 at 1:45 PM

There is no question that the price of West Texas Intermediate oil is directly correlated to the price of refined gas at the pump.

But the question is: What caused the price of West Texas Intermediate oil to drop so precipitously?

You claim the drop was due to the recession. I beg to differ. I claim the drop was due to changes in U.S. Government policies and regulations.

Bush increased the perception of future supply, and speculation regarding future production brought the current price down dramatically.

Obama decreased the perception of future supply, and speculation regarding future production brought the current price up dramatically.

ITguy on March 30, 2012 at 1:59 PM

ernesto on March 30, 2012 at 12:53 PM

Only a complete economically illiterate moron believes that an entity that creates neither a supply, nor a demand for a product- i.e. government and/or politicians can reduce the price of goods and services and unemployment. They can however drive up prices by limiting the supply with their policies, like they are doing now.

celtnik on March 30, 2012 at 2:01 PM

A few observations Re: Recessions and gas prices

When global demand goes down the price of oil will usually drop. But at the same time, when the Fed keeps printing money in response to the recession the value of the dollar goes down, so it takes more dollars to purchase oil, causing the price of gas to rise, which snowballs into more inflation, seen in the price of food and other goods and services.

Meanwhile, the recession felt by the US and Europe is not being felt in countries like China. Their demand for oil has gone up exponentially as tens of millions of Chinese get cars every year, so global demand is still high and will continue to be so. Contrary to Obama’s idiotic idea that oil production should be discouraged and producers punished, the Chinese are smart enough to encourage expanded oil production and they now exceed the U.S. Ironic that China has a better understanding of economics than Professor Obama, the Marxist-in-Chief.

And yes, ME instability plays a role especially with speculators, but that’s why we’ve been saying for decades that we need to be freed from our reliance on foreign oil. The problem is that the solution for too many politicians has been “renewables” which cannot even begin to meet the demand. And then there’s Ethanol. Did adding it to gas make the price of gas go down? That’s a rhetorical question…

Buy Danish on March 30, 2012 at 2:06 PM

Keep talkin’, Debbie. We can’t buy this kind of advertising . . .

tpitman on March 30, 2012 at 2:15 PM

ITguy on March 30, 2012 at 1:59 PM

Yeah, I’m not going to argue that all those other factors don’t contribute to the rise and fall of fuel prices; they do.

I’d just argue that such a precipitous short drop can’t be explained away at the margins. The price of oil is set on the open market. When the developed world world went into a severe recession it’s markets dropped, taking the price of crude with it.

I’ll try to find some time this afternoon to dig up historical recessions and line it up against the price of oil and gas, and post what I come up with. I suspect there will be a decent correlation.

BadgerHawk on March 30, 2012 at 2:18 PM

Every time a liberal says the words Kock Brothers an ACORN worker get his wings.

angryed on March 30, 2012 at 12:01 PM
Nice. Although I thought it was “another slut gets her free contraception.”

TexasDan on March 30, 2012 at 1:03 PM

Possibly. Or it may just be a Fluke…

labrat on March 30, 2012 at 2:22 PM

The way the Left is reacting, you’d think it was another Palin Facebook posting. Why? The substance of the ad is so straightforward, so dead-on accurate that it stings with its simplicity.

How do defeat the self-loathing Left? With mirrors.

EMD on March 30, 2012 at 2:22 PM

High gas prices are a result of exploding 3rd world demand, political instability in the middle east, and the rising cost of exploiting even proven reserves. The president has one tool at his disposal with which he can attack this issue: opening up federal land.

Why not say “make it a priority to get more drill bits into the ground in a massive effort to develop domestic oil supplies which will provide the oil market with a positive outlook on the future supply of oil, which is the root cause of rising oil prices”.

Opening up federal land is mental masturbation for those who don’t realize that beginning to look at the process of restarting the federal land oil leasing program is not the same as turning a drill bit in the ground. In fact, they aren’t even related.

Obama can lease the entirety of federal lands, and not one more drop of oil will ever come out of the ground because of it. Whats needed is the permit to make a hole from which we will suck out crude oil. And he ain’t signing permits.

BobMbx on March 30, 2012 at 2:58 PM

Do you know what I get tired of (I know you don’t care, but it’s an “intro”)…the misleading statement that gas is $4.00 a gallon or $9.00 a gallon.
Listen carefully, if the pump states $4.00 per gallon, how much money do you have to make to pay that “$4.00″, that’s right, in California almost $8.00 to pay for that $4.00 of gas.
Gas doesn’t cost the consumer $4.00, it costs the consumer $6.50 to $8.00 of their hard earned money to pay for that gas.

Three years ago, if you made $20.00 per hour, it took you just 10 minutes or so, of your work hour to pay for that gallon…now at the same rate of pay (since few have had any substantial wage increase) it now takes you 20 minutes or more, out of that one hour, to pay for that one gallon.

That is why the MSM stays away from math…if the public took out a pencil, there would be a revolt.

right2bright on March 30, 2012 at 3:01 PM

So… you are saying that Obama lied when he blamed Bush for high gas prices.

ghostwalker1 on March 30, 2012 at 1:03 PM

Yes I am, though during the Bush era, the primary cause of Middle Eastern political destabilization was in fact the US government.

Rovin on March 30, 2012 at 1:00 PM

Last I checked, oil production is up in the US. Where are you getting this?

ernesto on March 30, 2012 at 3:02 PM

Not a single one will come out and promise to bring prices or the unemployment rate down. That is because they know they cannot, and while it is politically useful to blame it on the current President, they know that in the same position they would be equally helpless.

ernesto on March 30, 2012 at 12:53 PM

That’s like saying not a single doctor will promise to bring a dead man back to life…so they are not really good doctors. Not a single doctor will promise to save a life, if after every resuscitation, the victim gets shot again.
Pal, we first have to get rid of the disease, and the disease, once gone, can we than begin to rebuild our economy.

right2bright on March 30, 2012 at 3:09 PM

Last I checked, oil production is up in the US. Where are you getting this?

ernesto on March 30, 2012 at 3:02 PM

No, it’s up on “Federal Land”, way down on private land…no new leases have been opened, no new mining has opened, under Obama…and all the land that has increased production, were from the removal of regulations, and licenses given during the Bush administration…so, thank President Bush for the foresight.
HAHAHAHAHAHA! You are such a naive and ignorant fool…you are praising President Bush, whom you despise, and make Obama the fool who you are trying to support…pal, with supporters like you, Obama is in big trouble.
You are becoming my favorite poster for proving that conservatives are the ones who are producing, and liberals are beggars….thanks, keep posting you are F’in brilliant…we love you!!!
Go Bush!!!

right2bright on March 30, 2012 at 3:14 PM

Come on… It’s all Bush’s fault. Why, just yesterday a liberal at work so much as said so when the topics ‘foreclosures, gas prices, bailouts, and unemployment’ all came up in one sentence… (oops, my bad).
-
I can tell you already after just one week… that I am really not going to like being back on day shift.
-

RalphyBoy on March 30, 2012 at 3:46 PM

It’s one thing when the Congress does all the demogoguery, another when they send the President out to lie to the American people. Even Bill Clinton knew better. Obama has to be getting his marching orders from someone or some organization.

lea on March 30, 2012 at 3:50 PM

No mention of the relationship between the dollar, gold and oil?

Sigh

fatlibertarianinokc on March 30, 2012 at 4:01 PM

No, it’s up on “Federal Land”, way down on private land [...]

Go Bush!!!

right2bright on March 30, 2012 at 3:14 PM

.
It’s the opposite of what you state here

Oil production on federal lands took a giant drop in 2011, falling 275,000 barrels a day. Even with that drop, production is still higher than it was in 2008 — the last full year under President George W. Bush. But the real boost has come on non-federal lands, where production is up more than a half-million barrels a day.

ExpressoBold on March 30, 2012 at 4:38 PM

right2bright on March 30, 2012 at 3:14 PM

Nope. Oil production is up on private land and almost non-existent on federal lands because the Obama administration won’t lease and won’t approve permits.

totherightofthem on March 30, 2012 at 4:42 PM

I stand corrected, in part. Thanks, Expresso.

totherightofthem on March 30, 2012 at 4:42 PM

That was enough for POLITICO to declare: “Kochs linked to $3.6M anti-Obama gas price ad.” The shock and horror!

That would be the same lib-propaganda dump that Hot Gas gets an awful lot of its headlines from. Just sayin’.

Jaibones on March 30, 2012 at 5:25 PM

Barry Bonds for Surgeon General!!!

I am trying to stop posting and leave you guys alone but…

you should see the calculus of the impact of the votes by Democrats and the actions of various green groups on our energy prices.

After years of trying to kill energy generation, our administration did virtually nothing about energy supplies or prices as you know. They were too busy chasing the “skyrocketing electric bills’ which would lead us to the wonderful tech stuff from the morons in DOE. The guy running it got a prize for something clearly divorced from his present job. Not that he has no skill and experience. He does and it is negative. It was like making Barry Bonds Surgeon General.

Airlines and farmers understand futures markets and the vagaries of commodity prices. I need to talk to Bill O’Reilly about last year’s corn and hamburger conspiracy and the way all the prices are the same.

The gang we have in charge would wreck a business faster than you can say “bailout” and nobody is home to get better people in the future.

IlikedAUH2O on March 30, 2012 at 5:34 PM

Every time a liberal says the words Koch Brothers an ACORN worker get his wings.

angryed on March 30, 2012 at 12:01 PM

Nice. Although I thought it was “another socialist slut gets her free contraception.”

TexasDan on March 30, 2012 at 1:03 PM

Gentlemen, I hope you don’t mind me fine-tuning just a bit. Both are wonderful, sentimental suggestions.

Jaibones on March 30, 2012 at 5:52 PM

ObamaExpressoBold on March 30, 2012 at 4:38 PM

A leader chasing a mirage is a dangerous thing.

And the production only proves how inept the administration was at killing fossil fuels.

I could write a few years on the anit-oil actions of the left wing of the Democrat party since 1970. Our leader came in with similar priorities. The site, http://www.masterresource.org can get you started.

The way things have worked out, our beloved POTUS looks like a fool.

President Bush had his “weapons of mass destruction” while President Obama has his “green energy solution”.

At the very least, we we aimed in the wrong direction and all the spin of the planet will not make the first three years look like an attempt to implement a realistic energy policy.

We will now wait for the scapegoating and attempts to make geese that lay golden eggs look like thieves so the fools that backed alchemy look like wise leaders.

IlikedAUH2O on March 30, 2012 at 7:11 PM

IlikedAUH2O on March 30, 2012 at 7:11 PM

That is a great website. Rob is a good guy.

FYI, I’m involved with some private investors and it sure looks like gasoline may well reach $9 or have a heck of a go at it this summer.

It is all about what the Obama Administration did in its first 2 years which has set the stage. He cannot stop the price rise now or for the next year or more.

Kermit on March 30, 2012 at 7:32 PM

ernesto on March 30, 2012 at 12:53 PM

So let’s flip the argument. If prices are up due to global demand then the United States should be opening both federal and private land to exploration and development for the purpose of reducing federal debt, reducing unemployment, expanding growth, and raising the economy. If drilling in the United States will not affect the price of oil (which seems to be the core of every Democrat argument against drilling), then the U.S. stands to gain a windfall in all directions.

itsspideyman on March 31, 2012 at 2:19 AM

Gasoline per gallon here in NYS is over four dollars a gallon and 67.4 cents per gallon of gas are taxes and the States are for the most part different, here take a look.
http://www.api.org/Oil-and-Natural-Gas-Overview/Industry-Economics/%7E/media/21EBD0B62EBA42B1965EE82EFFB6585D.ashx
It’s the government that’s getting the most money.

mixplix on March 31, 2012 at 10:44 AM

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