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Oil companies make record profits while people pay record prices August 1, 2008

Posted by Matsu in Business, News, News and politics.
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In the United States the price of a gallon (US) of gasoline has gone up about 35% in the past six months. At least, that’s what has happened where I buy my gas each week.

Many Americans have cut back on the amount of driving they do in order to reduce their costs. So, the report yesterday that Exxon has another record-breaking profit for a single quarter of gasoline sales seems to be salt in the wounds of the American public.

According to an article by MSNBC:

Exxon Mobil Corp. said Thursday it earned $11.68 billion in the second quarter, the most ever by the U.S. corporation.

“The top five oil companies are now on track to hit $160 billion in profits for the year,” said Rep. Edward Markey, D-Mass., releasing a report that showed much of those profits are used to buy back stock and not invest in new production.

At the same time, because of reduced driving and therefore reduced gasoline sales, there is a drop in the amount of taxes collected at the pump which translates into less for the government to pay for road repairs. Maybe we should let the oil companies share their profits by paying for repairing the roads. It’s not like they don’t have the money!

 

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