Are We Paying Higher Gasoline Prices To Help Fund The Iraq War?

Question

I know the usual arguments for Gasoline prices....increased demand from other foreign countries etc, etc. But, I have to throw my government conspiracy theory out there. Is the money that is being spent at the pump somehow funneling back from the Oil Companies to the Government to help finance the War in Iraq? Let's face it, we're fighting a War, the Republicans are lowering taxes, and the money for the War must come from somewhere. Yeah, I know we have deficit spending, but even that doesn't seem to truely address the costs of the War. Do you think the Oil Companies might be kicking back their windfall profits to the Government to help finance this war?

Answer 1

To answer your question;



No, we are paying higher gasoline prices because of the growing demand of oil by China and India for their economies and the prevention of American oil drilling and production of known oil supplies at home.

Answer 2

No. No doubt the war is costly but your country is a net importer of crude oil, and the international oil price is over $100 per barrel, as opposed to below $30 when the war started. Oil is a commodoty. Investors buy commodoties in uncertain times, rather than equity (stock market shares). So oil is up, internationally, at least partly because of speculation. Traditionally the US Dollar was the world's "reserve currency", where one would keep funds in uncertain times. Now, since the dismal performance of the USD of late, even more investors than usual are putting their money into commodoties, such as oil.



Since crude oil is the main raw product used in manufacturing Gasoline (or Petrol, whatever we call it), it is only logical that the gasoline price would increase.



In fact if gasoline prices did not increase, then that would have been suggestive of a conspiracy. Also, the US pays much lower levies on fuel than most other countries, so gasoline is a lot cheaper in the US, than in most oil importers, such as here in South Africa, or in Europe. It is no surprise that US built cars are much more fuel inefficient than their European and Japanese counterparts.



I'm with you on the futility and cost of the war, and that the war may have resulted in the higher oil price, but believe me you are not subsidising the war at the pump. In fact, the higher the fuel price, the less people drive, and consequently the less revenue earned through the pump.



Even if there is a windfall kickback from oil companies, it will still make the war a futile and unprofitable excercise, as the US remains a net importer. The Middle East still profits in orders of magnitude more than any other region.

Answer 3

You are paying about the same federal sales tax on gasoline that you have for a generation. Nearly all of that money goes to pay for the construction and improvement of highways, not to finance the war.



The Bush administration, and Republicans generally, have historically believed in and worked toward a smaller federal government, lower taxes, and greater states' rights.



"Big Oil" is NOT the horrible entity that some would have you believe. The oil companies invest more and more of their "profits" every year to be able to provide you with energy.

Answer 4

No, oil prices are based on supply and demand, and who controls opening and closing the valves. OPEC controls the most oil valves and India and China are buying up more Oil than is produced daily.



Government is making a killing off gas prices so, they wont do nothing to solve the issue. They make a certain percent from every gallon sold. In the past, when prices were about a buck and a quarter per gallon, the tax was about 72 to 76 cents per gallon. Now that we at over 3 dollars per gallon, government is making about 2.25 per gallon.



Do the math, why should they do something to reduce the price per gallon??



Besides, the Congress wants to cut the 18 Billion dollar tax breaks, over 10 years, oil companies get for research and developement. So, that means the oil companies, who yes, pay more for services, payroll, benefits for employees and such.



Everyone pays more when the price goes up. If Shell, BP, Chevron and Phillips were so powerfull, why is the Congress trying to target them???



Hey people, common sense goes a long way and I live and work in an area that has mostly oil field people living here. They tell me a drilling ship, used to cost $188,000.00 per day to drill a well. NOW, with prices up, the companies are paying about half a million per day to get someone to drill a well for them. The oil companies pay millions to hunt for and bring in oil, and make about 10 cents per gallon profit. That information came from the Congressional Committee who grilled the oil company bosses.

Answer 5

Hmmm.... They could in the form of political donations. I don't think the money could be used directly to fund the Iraq war. Taxpayers are going to have to cover it. That's why taxes will most likely be raised. What other choice is there unless we default on our debt and that might be even worse in terms of dealing with the consequences. Bush and Cheney should have been impeached long ago. Shame on Congress.

Answer 6

The Government is as entity to stupid, like a giant maggot. There are some, who abuse the power they have for their private and just plain idiotic adventures, but big oil is just in for themselves.

The Iraq war is funded by loaning from future unborn generations.

Answer 7

the federal authorities is one huge money making device! Its a ponzi scheme on a grand scale! First they confisticate your wages in the previous you ever recieve them then they tax you on especially a lot each and every thing else you do in existence. favor tires they're taxed use a telephone? Ditto taxed too! desire a automobile battery yep yet another tax!! power a automobile yep tax the gas you employ! Draw social safe practices yep tax that! Get intrest for saving or capital features? Yep TAX that! And IRA yep tax that!----------they're criminals uncomplicated and easy!

Answer 8

Actually we are funding the politicians homes, estates and vacations







which i need to get into that action







oh yeah and envirofreaks wont let us drill our own oil

Answer 9

The Iraq war is sucking money and resources out of everything.



And on top of that, they are borrowing money from China - money that your childrens great-grandchildren are still going to be paying back.

Answer 10

i understand that their are congressman and senators who are asking for a investigation into why we are paying such high gas prices at the pump when the bush administration could release the usa oil reserves to ease the prices down for the Americans peoples

Answer 11

I doubt it. We're currently coming out of the age of abundance and are beginning to see shortages of everything

Answer 12

Ive thought this as well, It seems to be so