That's right. In the third quarter, ExxonMobil, the largest oil company in the world, earned $10.3 billion dollars. Many people cry foul at how much money was earned. However, have you ever stopped to think how much money the government collects on gasoline?
Let's do the math. The U.S. consumes we'll say an average of 9.2 million barrels of gasoline per day. That's about 386.5 million gallons of gasoline- everyday. Using numbers from the American Petroleum Institute, who tracks the average taxes paid per gallon, we know the average total combined tax per gallon in the U.S. is 48.8 cents per gallon, of which 18.4 cents goes to the Feds.
Now, doing the math, various branches of government collect 48.8c/gal times 386.5 million gallons per day. That's $188.6 million dollars per day. If we multiply by 365 days, we find that the government collects $68.84 billion dollars per year, just in gasoline tax. That comes down to $17.2 billion per quarter, which was nearly seven billion dollars more than Exxon earned. The government has little work to do but levy and collect the tax. They don't refine the oil, process it, or ship it. They merely tax it. Of course, we have roads to pay for, yes, but the simple fact of the matter is that the U.S. government profits more from gasoline than the largest oil company in the world.
Put things in perspective?
Motorists in Connecticut paid the most tax per gallon in October 2011 at an average of 68.7c/gal. California motorists came in second at 67.7c/gal, Hawaii third at 66.6c/gal, Illinois fourth at 58.3c/gal, Michigan fifth at 57.4c/gal.
States that paid the least amount of tax on a gallon of gasoline in October? Alaska- just 26.4c/gal, Wyoming at 32.4c/gal, New Jersey at 32.9c/gal, South Carolina at 35.2c/gal, and Oklahoma at 35.4c/gal. The West Coast wins highest average tax- 58.2c/gal.