Prices at the pump? Paul Morrison's comment (Clarion, April 6) hints at part of the problem. Of course the Oil Conglomerates are raising their profits, as well as retailers and tax authorities.
We who live on the Kenai have a bigger bite out of our pockets for all those reason as well as Fairbanks. The producers/processors price the fuel at the distribution point, Anchorage, and charge freight to the retailer. This is especially unfair in Fairbanks when most fuels are produced in North Pole but the are charged from Anchorage for transportation rates. We (Kenai Peninsula) have our own difficulties as we are robbed for transport as well as taxes. This borough taxes on the dollar amount (a sales tax for the general fund) rather than a quantity tax (per gallon). Several years ago the "borough" was challenged as to this tax, at that time the tax folks put out that "they had no way to figure a rate by the gallon so they just use a sales tax on the amount" (not verbatim). So when people in Anchorage pay, say $4/gallon, we pay that plus transportation plus borough sales tax that in a nut shell is why we pay more.
This borough, to my knowledge, is the only government that does not tax fuel on a quantity basis or specifically designate the tax for roads as do most tax authorities. Guess they get enough taxes for the roads because we are charged additional taxes/fees on our vehicles for registering within the Kenai Borough. With so many hands in the cookie jar that want their share it is no wonder the price of fuel has gone so high. Will the borough be sympathetic to these concerns? I don't think so, these are the same folks who raise their own salaries as they wish and just raise a mil rate or charge a fee to make up the difference. Ever wonder why diesel prices are so much higher than gasoline? Most using diesel are commercial trucking and they write the cost off on their taxes as an expense of transporting, the oil companies get more and the transporters write it off, who pays? We do, because governments not only subsidize them, we pay higher prices so they can have even more.