Here is the dictionary.com definition of profits:
1. An advantageous gain or return; benefit.
2. The return received on a business undertaking after all operating expenses have been met.
Certainly Big Oil is benefiting from the sale of gas. Why else would they be in the oil business? And after they have undertakentaken the business of finding, refining, distributing, advertising, and selling gas, they are receiving a return.
On the average gallon of gas, the profit for oil companies is 8 cents. So, if there are 360 million gallons of gas purchased in the US each day, Big Oil will pocket $28.8 million.
So, Big Oil is profiting from all their work. But are they the only ones?
The government also benefits from the sale of gasoline. Though they don't undertake any of the business involved in the production and sale of gas, they nonetheless get a return on the investment of others.
The federal tax on a gallon of gas is 18.4 cents. The average state tax is 22 cents per gallon. So, if there are 360 million gallons of gas purchased in the US each day, government will pocket $144 million.
Somebody is gouging us at the pump, but I'm not so sure it's Big Oil. For doing absolutely nothing to contribute to the production and sale of gas, our governments are making 5 times more than the people actually doing the work.
That is obscene.