The Democrats promised us this war was about oil. With gas prices soaring, I’m still waiting to benefit from trading “blood for oil“. How much more sacrifice do we need to make before I can fill up the tank for under $30 again?

For those of us living in a normal, non-psychotic world, here’s a little primer on gasoline production and the costs associated therewith.

Drivers around the country are now paying an average of $2.60 for a gallon of regular unleaded gasoline and in some areas of the country the price is pushing $3.50 a gallon.

Federal excise taxes take 18.4 cents of that leaving $2.416 - $3.316 per gallon.

State excise taxes take an average of 21 cents which would leave $2.206 - $3.106 per gallon. (However, eleven States levy additional State sales and other taxes)

Here’s a graphic showing the whole breakdown.

Notice refining costs and profits comprise no more than 18% of the cost we pay. It costs about $2 a gallon for U.S. refiners to turn crude oil into gasoline before transportation and distribution costs are added, said John Felmy, an API economist.

That leaves 20.6 cents - $1.106 per gallon for transportation, distribution and profit.

“When you take all those costs out you’re not finding unreasonable profits for everything we have to do to get (gasoline) to consumers,” Felmy said. As a business decision, invading Iraq “for the oil” is a loser, a big loser. Anyone who would propose, in a corporate boardroom, invading Iraq for the oil would probably find his career rather short. No, the slogan “no war for oil” is a blatant misrepresentation propagated for political reasons.

Duh.

Update: Reader “Capitalist Infidel” raises a good point relating to China’s impact on gas prices. Good call!

Update: Kokonut Pundits raises yet another good point relating to Iraq’s new Constitutional provisions and the fact that oil revenues are divided among the 18 provinces, with the U.S. receiving zero. How the hell did we negotiate zero oil revenue from a “war for oil”? Another good call, Thanks, McConnell.