After reading the responses to the [Truckers’ Views] question “How Would You Solve The Rising Fuel Price Problem?” in the September issue, I was impressed with the thought-out, intelligent answers, with one exception. Obviously, Mr. John Turk has been misled by some bad information. His statement – “We are being held hostage. Bush is making money, and we are paying for it, so we need to change who is running the government” – is not (I believe) entirely correct.
My first question is when has any president controlled fuel pricing? Answer: never. First, the cost of oil per barrel is determined by the 11 OPEC nations by how much crude is pumped. When these countries want to increase profits, they can merely cut production, making oil companies nervous of being short, therefore raising prices. Even when the United States imports from other countries, (i.e. Mexico, Russia or China), OPEC monitors these imports and adjusts their prices accordingly. Crude oil is also a traded commodity, and any hint of shortages will drive trading prices up.
Where does the money go? Forty-three percent goes to OPEC for crude, 31 percent in taxes, 13 percent refining and profits, 13 percent distribution and marketing costs and profits. As you can see, no mention of elected officials. I don’t buy into conspiracy theories by our government. That doesn’t make me na
