Originally Posted by
BarracksSi
Another story that was on the same page:
http://www.npr.org/templates/story/s...toryId=5372121
"What Constitutes Price-Gouging in the Oil Industry?"
"With gas prices passing $3 a gallon, accusations of price-gouging are common. But what exactly is price-gouging? How is it defined? And are the oil companies guilty of it?"
I happened to be thinking about this last night and got to wondering... the oil companies are telling us that they have raised the price of gas to reflect the cost of buying high priced oil... yet they then post record high profits. Profits are what is left after you pay for the cost of raw materials from the revenue you bring in based on the goods sold.... If the price of gas reflects the high cost of oil, there should not be a "record profit" as the goods out price is only reflecting the change in materials cost... so there is no net change. But apparently that is NOT true for oil companies... as the result has been "record profits."