Gas Prices

Maybe I don't understand the inner workings of politics and petroleum, but I do understand that the it is going to be tough for the average American to fill his or hers gas tank over the next few months.

Today it costs me around $3.44 per gallon to fill my car. Typically, living in New Jersey affords me some of the lowest gas prices (See where you state falls out by visiting Gas Buddy) in the country.

The hot button topic today with our Presidential "hopefuls" is the gas tax. McCain would like to see the gas tax suspended over the summer, while Obama is opposed.

I can go either way on this. While I would like to see gas prices go down, I don't think suspending the tax is the way to do it.

Why?

Because if you suspend the gas tax, or any tax for that matter, the government is going to make it up somewhere else.

The only way to lower gas prices is to some how regulate it at the source, the gas companies and stop giving the oil companies tax breaks. Click here for news from Politico.com this past February that shows what the House and Senate are trying to do knowing that President Bush and Vice President Haliburton, I mean Chaney will undoubtedly veto.

Here are some earnings from Gas companies in 2007. They are listed in order as they appear on the 2007 Fortune 500 List:

1. Exxon/Mobile - $40.6 Billion

2. Chevron - $18.7 Billion

3. ConocoPhillips - $15 Billion

4. Valero Energy - $5.4 Billion

5. Marathon Oil - $5.2 Billion

6. Sunoco - $979 Million

7. Hess Corp. $1.9 Billion

8. Tesoro $800 Million

9. Murphy Oil $683 Million

10. Frontier Oil $379 Million

Sickening!!

So you think the answer is to go out and buy a hybrid or alternative fuel vehicle, such as Ethanol? Think again.

If we all go hybrid, the oil companies will just raise prices to cover overhead and profit. Sure you will be able to get 50 miles to the gallon, but the gallon is going to cost you $15.

Ethanol? Maybe, but I heard a rumor a few weeks ago that some of the big oil companies are buying up corn crops faster than you can make popcorn.

One thing to remember is that oil not only affects our gas prices, it can practically be found in almost every non food item we use today.

The way I see it: The only way for this situation to get better is if, and only if, the government gets involved, puts aside its special interests, and starts regulating oil.