Knowledge Problem

Mark Perry: Gasoline Taxes Vs. Exxon Profit, Per Gallon

Michael Giberson

With Exxon Mobil reporting $10.65 billion profits for the quarter, expect (1) news reports on the billions of dollars in profits the company is raking in even as consumers are faced with $4/gallon gasoline, followed by (2) outraged political commentary about how Exxon is profiting from consumer misery.

Mark Perry, blogging at Carpe Diem, offers up a little perspective: Exxon’s profit per gallon of gasoline sold runs a little about 2 cents, while federal, state, and local gasoline taxes per gallon of gasoline range from a low of 26.4 cents (Alaska) to a high of 66 cents (California, New York).